The competitive landscape of Robotaxi is undergoing a transformation. Starting in the second half of 2025, two new signals emerged in the autonomous taxi sector: the entry of vehicle manufacturers and accelerated large-scale deployment overseas. By 2026, these signals became more pronounced: Tesla's Cybercab entered production ahead of schedule, XPeng established an independent Robotaxi business unit, and companies like WeRide Inc. and Pony.ai are actively expanding into the European market. As the competitive focus shifts, autonomous driving companies face new challenges. Recently, Han Xu, Founder and CEO of WeRide Inc., stated in an interview that during the company's 2025 annual report communication meeting, competition in the Robotaxi sector was frequently raised by investors, with 8 out of 10 investors expressing concern. Regarding this, Han Xu offered his perspective: "Having ambitious goals is positive, but it's essential to be down-to-earth and actually deliver the vehicles." Data shows that WeRide Inc. reported revenue of 690 million yuan in 2025, a year-on-year increase of 90%, with Robotaxi-related revenue surging 210%. Currently, the company's global Robotaxi fleet size has reached 1,125 vehicles, with plans to expand to 2,600 vehicles globally by the end of 2026. "They Haven't Passed the Qualifying Round" Current market attention is on the competition between vehicle manufacturers like Tesla and XPeng and autonomous driving companies such as WeRide Inc. and Pony.ai. Han Xu believes that investors are asking about the final stage of competition, but many newcomers may not yet qualify to enter the arena; they might not have passed the qualifying round. He emphasized that companies must at least pass the qualifiers before discussing semi-finals or finals. "A company truly capable of entering the Robotaxi competition should have at least 100 fully unmanned Robotaxis and have conducted public safe operations for at least six months to qualify to compete with us. Then we can talk about reshaping the Robotaxi market. For now, I hope they perform well in the qualifying rounds," Han Xu stated. From a market perspective, vehicle manufacturers might have a cost advantage as they can produce the vehicles needed for Robotaxi operations. However, Han Xu argues that procuring vehicles is not the main barrier in the Robotaxi sector, as most major domestic automakers can now produce vehicles with safety redundancies. He noted, "Currently, sales profits for independent brand new energy vehicles are low, especially when sold to strategic partners, with prices just slightly above cost. Collaboration between autonomous driving firms and automakers has already extended to front-load mass production, so the automakers' advantage in vehicle procurement has been neutralized by this close cooperation." From a technical standpoint, Han Xu mentioned that the leap from L2 to L4 autonomy is significant, a path WeRide Inc. has been on for nine years. While many automakers announce Robotaxi plans, they have yet to commence fully unmanned operations. He cited examples: previously, several traditional automakers insisted on in-house development of high-level assisted driving but later abandoned these efforts. For instance, GM's Cruise has exited Robotaxi to focus on personal vehicle ADAS, and Ford and Volkswagen-backed Argo AI dissolved, shifting focus to L2/L3 ADAS. Han Xu said, "Given that well-funded, high-market-share international automakers have successively exited the Robotaxi field, I currently don't see the advantages for newly entering manufacturers." Han Xu believes that Robotaxi is not a sector where barriers can be overcome simply by adding manpower or investment in a short time, and strategic alliances between automakers and autonomous driving tech firms hold more significant advantages. Additionally, WeRide Inc. is continuously driving down costs: its HPC3.0 (third-generation high-performance computing platform) reduces lifecycle costs by 80%, and increased system integration has cut autonomous driving kit costs by 50%, achieving higher computing power with lower hardware costs. The GENESIS platform has directly reduced the company's data collection and training costs by 75%. The company's front-load mass-produced Robotaxi GXR, developed in cooperation with Geely's Yuan Cheng, is set to launch in the third quarter of this year, expected to reduce vehicle costs by another 15%, with a production cycle allowing a vehicle to roll off the line every 10 minutes, ready for immediate deployment. Expanding Overseas Markets Seeking growth in overseas markets has become an industry consensus. WeRide Inc. is no exception, launching a project in Slovakia in Europe and commencing fully unmanned Robotaxi commercial operations in Dubai, Middle East, in March, followed by public Robotaxi operations in Singapore, Southeast Asia, in April. Unlike domestic subsidies for Robotaxi fares, overseas Robotaxi orders receive almost no subsidies, resulting in higher fares and greater profit margins. Han Xu stated that as Robotaxi services cover more regions and fleet sizes expand, the core issue remains the fare per ride. Currently, the overseas Robotaxi market is still in the user acquisition phase, requiring an increase in ride orders. Therefore, maintaining the company's overall gross margin at the same level as 2024 (approximately 30%) in 2025 was a significant achievement. It is understood that WeRide Inc. will focus on the European market this year, where order prices are high and there is a labor shortage. The company has previously deployed services in European cities like Paris and Zurich, but regulations vary by city, and there are strict requirements for automotive data storage compliance. Consequently, the company is adopting a city-by-city approach to expanding in Europe. The Middle East remains a crucial market for autonomous driving companies expanding overseas. Despite regional instability, WeRide Inc.'s operations there continue, with Dubai becoming the second city in the Middle East after Abu Dhabi to launch fully unmanned operations. Han Xu is optimistic about Robotaxi development in the Middle East, suggesting a "wait-and-see" approach. Data indicates that WeRide Inc.'s Robotaxi operations in the Middle East achieved operational profitability last year. In Han Xu's view, the Middle East is already a profitable region, warranting continued hiring and scaling up operations. Data shows that currently, overseas markets contribute between one-third to one-quarter of WeRide Inc.'s Robotaxi business revenue, while domestic markets account for two-thirds to three-quarters. To date, WeRide Inc.'s global footprint spans over 40 cities across 12 countries. The company stated that it will continue to expand Robotaxi operations in overseas markets like Singapore and Switzerland, depending on specific regional policies.
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