Chinese self-driving start-ups Pony.AI and WeRide experienced a disappointing debut on the Hong Kong stock exchange, with their shares plummeting over 10% after raising more than $1.1 billion. The companies, which were listed in New York last year, are seeking to expand their presence abroad and compete with rivals such as tech giant Baidu. Pony.AI’s shares, priced at $139 each, fell 14.4% to $119, while WeRide’s shares, priced at $27.10, dropped 13.9% to $23.30.
The listings are part of Hong Kong’s efforts to become a hub for initial public offerings, with the city being the world’s largest IPO market this year. Beijing is also actively promoting the development of the autonomous driving sector, with China aiming to reduce transportation costs by leveraging artificial intelligence. According to Frost & Sullivan, the country’s robotaxi services are expected to reach $70 million by 2025 and experience exponential growth to $39.4 billion by 2030 and $183.0 billion by 2035.
Pony.AI and WeRide plan to use the proceeds from their listings to develop autonomous driving technology and solutions. The companies’ CEOs, James Peng and Tony Han, expressed their commitment to advancing the self-driving industry in China and globally. Peng noted that Pony.AI has recorded continuous losses since 2022 but expects to break even by 2028.
However, experts have raised concerns about the potential safety issues associated with driverless technology. Tom Nunlist, a tech policy analyst at Trivium China, stated that the major challenge for the industry in China is the evolving regulatory landscape. Chinese officials are planning to accelerate the development of standards for driver assistance systems and autonomous driving, with a focus on addressing safety concerns and preventing accidents caused by misuse.
The growth of the autonomous driving sector in China is expected to have significant implications, with robotaxis projected to make up a substantial proportion of the country’s shared passenger vehicles by 2035. Listed ride-hailing companies, such as Didi and Caocao, have already included autonomous driving services in their future growth plans. As the industry continues to evolve, it is likely that China will play a leading role in shaping the global autonomous driving market.