Pony.ai and BAIC BJEV, the EV subsidiary of China’s BAIC Group, have expanded their strategic partnership to accelerate the production and commercial deployment of Level 4 autonomous driving systems.

The expanded arrangement will aim to address the challenges of scaling L4 robotaxi services from pilot programmes to commercially viable operations.

A key focus of the cooperation will be the early-stage design and engineering of purpose-built robotaxi vehicles.

This includes joint work on vehicle architectures and in-cabin systems intended to better support autonomous driving functions as well as passenger comfort and usability.

The partnership extends beyond vehicle development. The companies plan to collaborate on areas such as user acquisition, fleet management and vehicle servicing.

Pony.ai vice president Ning Zhang said: “By combining Pony.ai's autonomous driving technology with BAIC BJEV's manufacturing expertise and supply chain capabilities, we are building a scalable foundation for Robotaxi deployment in China while accelerating our expansion into global markets."

By drawing on BAIC BJEV’s original equipment manufacturer-grade supply chain and manufacturing capabilities, the partners aim to lower the bill of materials and reduce long-term operating costs.

Pony.ai and BAIC BJEV first began working together in 2024. Since then, they have jointly developed and produced Pony.ai’s seventh-generation robotaxi, the Arcfox Alpha T5.

These vehicles are currently being used in commercial Robotaxi services in Beijing and Shenzhen.

Positioned as a flagship L4 Robotaxi, the Arcfox Alpha T5 features a range of upgrades aimed at improving pick-up efficiency, ride quality and the overall passenger experience, the company said in a statement.

Building on their existing operations, the two companies plan to introduce the jointly developed Arcfox Alpha T5 Robotaxi to selected overseas markets, including parts of Europe and the Middle East.

Since the partnership was established, Pony.ai and BAIC BJEV have together invested close to 1bn yuan ($143.32m) in autonomous driving research, development and commercialisation.

BAIC Group vice general manager and BAIC BJEV chairman Guofu Zhang added: “Through this deeper strategic collaboration with Pony.ai, we are jointly advancing L4 Robotaxi development and aim to build a more efficient and sustainable intelligent mobility ecosystem with global competitiveness.”

Pony.ai currently operates across eight countries, including Luxembourg, Qatar, the UAE, Singapore and South Korea.