Chinese autonomous driving firm Pony.ai says the groundwork for large-scale robotaxi deployment is largely in place. CEO James Peng stated the company has upgraded its core AI system, PonyWorld, and is working to lower production costs as it moves toward wider commercial rollout.

Peng said the company has evolved its AI from reinforcement learning to self-learning, enabling vehicles to judge their own driving performance. Pony.ai targets Level 4 autonomy, where vehicles operate fully driverless within specific areas. The company aims for its seventh-generation robotaxis to cost below $34,000 by 2027.

Fully driverless robotaxis are already operating in designated zones across four Chinese cities: Beijing, Chongqing, Wuhan, and Shenzhen. Beyond China, Pony.ai is expanding into the Middle East and Europe. In March, Uber announced a partnership with Pony.ai and Croatian startup Verne to launch Europe's first commercial robotaxi service in Zagreb. The company has also partnered with Estonian ride-hailing firm Bolt for deployments in Europe.

Peng acknowledged safety concerns following a past incident where one of its robotaxis caught fire in Beijing, with no injuries reported. He stressed that building trust depends on working with regulators and improving public understanding, adding that visibility will help win over skeptics.