Mobileye and Nio are partnering to bring a self-driving solution to the Chinese market by 2022
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Intel-owned autonomous vehicle (AV) startup Mobileye and Chinese electric vehicle (EV) manufacturer Nio announced a partnership to bring a self-driving solution to the Chinese market by 2022. Under the partnership, Nio will manufacture a self-driving system designed by Mobileye, which will then be implemented in Nio's EVs as well as Mobileye's robotaxis.
The Chinese automaker will also develop a self-driving EV variant specifically for Mobileye to use in its robotaxi service. The partnership follows news from June that Mobileye plans to launch a robotaxi service in its home market of Israel in 2020.
Mobileye and Nio's partnership is part of a broader trend of tech companies and automakers finding Chinese partners to enter the market.
- German automaker BMW forged a deal with Chinese tech titan Tencent in July to launch a computing center to support AV development in China by the end of 2019. The data center will store and process data from semi-autonomous and autonomous driving simulations and road tests in the country.
- Japanese automotive giant Toyota partnered with China-based AV developer Pony.ai in August to test AVs in the country. The partnership will see the companies pilot AVs in Shanghai and Beijing starting in September; Toyota will provide its Lexus RX vehicles, while Pony.ai will provide its autonomous driving system.
- German carmaker Volkswagen (VW) and Chinese auto manufacturer JAC joined forces in May to test self-driving tech in the Chinese market. Together, the two automakers will develop and deploy AV technology in the Chinese city of Hefei, including robotaxis and AV fleet management systems.
Here's why companies developing self-driving solutions are forging partnerships in China.
- China has the potential to be the world's largest market for self-driving technology. Chinese consumers have already expressed a higher preference rate for AVs than their global peers, per Capgemini. And the country is expected to generate $1.1 trillion in revenue from self-driving mobility services and a further $900 billion from sales of AVs in 2040.
- Moreover, a Chinese partner can help many players within the automotive industry avoid stiff import duties that could make their products more expensive. For instance, China is slated to implement a 25% import tax on US cars in December.
- The country's regulatory environment offers AV developers greater clarity and a more direct route to market. China approved national AV standards in 2018, so developers know the benchmarks they must meet to conduct AV tests rather than having to deal with a patchwork of or local laws. Additionally, the Chinese government seems willing to work with companies to navigate potential regulatory hurdles: Mobileye CEO Amnon Shashua said the country was working to standardize Mobileye's AV safety model into law, for instance, per Reuters.
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