China’s WeRide wants to build global robotaxi empire

Chinese autonomous-driving company WeRide is aiming to make more inroads overseas this year, its CEO says, betting that robotaxis and related services will be in high demand in coming years.

WeRide, which already operates driverless vehicles in 30 cities across nine countries, has its sights set on Japan, Europe and the Middle East. It claims to be the only company in the world that has obtained autonomous driving permits in four countries, including China, Singapore, the United Arab Emirates and the U.S.

That would seem to bode well for the firm’s ability to put down roots outside its home market, but as Chinese technology comes under increasing scrutiny from the West over national security concerns, it remains to be seen if WeRide can replicate its success in more politically-tense environments.

“We want to serve the global market," said Tony Han, founder and chief executive of the Guangzhou-based company. “Wherever there’s a need for driverless taxis and buses—that’s where we want to go."

Last week, the U.S. Commerce Department said it would ban the import of Chinese hardware and software in internet-connected vehicles on American roads. In Europe, officials have raised similar concerns, and several EU and Indo-Pacific allies may adopt similar measures to enhance security of the automotive supply chain amid national security concerns, the European Union Chamber of Commerce in China commented recently.

“If a country is not friendly to your company, you have to take that into account," Han said, adding that geopolitical relationships are an important factor to consider when expanding overseas.

That said, trying to predict policies that keep changing comes at a price, he added, and in most cases it’s better to react to whatever the final policy is.

“For now, we think the Middle East and Europe are better suited for our company’s overseas expansion," he said.

So far this year, WeRide has won new business in both Switzerland and Japan.

The Chinese firm is teaming up with Switzerland’s national railway operator in a program that will see cars outfitted with WeRide’s technology on the roads of Switzerland’s Furttal valley region. It has also secured orders to sell specially designed robobuses to the largest operator of autonomous buses in Japan.

Back in China, WeRide has enjoyed a wave of government support for the budding industry, but is also grappling with increasingly stiff competition.

Official initiatives to promote high-tech industries as the next engines of economic growth have helped fuel enthusiasm for robotaxis, with some local governments relaxing policies on autonomous driving last year. In the mega cities of Beijing, Shanghai and Guangzhou, driverless taxis ferry passengers around in certain areas. In other cities, automated sweepers can be seen cleaning the streets. Local administrations have also detailed proposals to build infrastructure and streamline regulations for the industry.

China is on the verge of large-scale robotaxi commercialization, Daiwa analysts said in a recent note. They expect the market for robotaxi-related car manufacturing and auto components to reach 160 billion yuan, equivalent to about $22 billion, by 2026. Eventually, robotaxis are likely to completely replace traditional ride-hailing vehicles, they said.

As tech companies vie for a slice of the pie, WeRide has sought to distinguish itself from rivals like U.S.-listed Pony AI and artificial-intelligence heavyweight Baidu’s Apollo Go unit by expanding its focus beyond robotaxis.

Han said that WeRide’s competitive advantage lies in its core technology, which is designed to be deployed across a range of products. The CEO said the company’s engineers tend to write more generic code, which can be easily adapted to different products like robovans and buses.

It’s a strategy that has yet to pay dividends however, with profitability still out of reach.

Like many of its peers, WeRide has been burning cash. Its net loss in the first three quarters of 2024 widened 20% to 1.92 billion yuan compared with the same period a year earlier, while its top line fell 14% to 220.3 million yuan.

WeRide raised $440.5 million when it listed in New York last October, but its shares have tumbled 20% since its trading debut.

But Han insists that it’s not geopolitical or financial obstacles that stand in the way of the mass commercialization of robotaxis and other autonomous driving products. The key lies in policy support, he said.

“We can easily produce more cars and take our fleet size to more than 1,000 units…but it’s not about the quantity, it’s about demand," Han said. “We need to push for policies and laws [to support the industry], and further boost demand."

Write to Jiahui Huang at Jiahui.Huang@wsj.com