“The ride itself is generally quite smooth except for some sudden brakes from time to time,” he said. However, he added that it was hard to find available taxis amid growing demand.

“I hope they expand their fleet and their operation area soon.”

While the company has projected that it will be servicing 100 cities by the end of the decade, to date it has only secured approval to cover select areas in four major Chinese cities for commercial operation of fully-driverless taxis.

It must wait for additional approvals from authorities, along with competitors like popular taxi app Didi Chuxing and unicorns such as the Toyota-backed Pony.ai and Alibaba Group Holding-backed AutoX, before expanding.

Nevertheless, the pilot demonstrations of the robotaxis represent a major step in China’s goal to support the technology. During the 2020 World Intelligent Connected Vehicles Conference in Beijing, the government released a road map that called for 20 per cent of all new vehicles sold to have Level 4 (L4) capabilities by 2030.

L4 capabilities allow a vehicle to operate without a driver’s active intervention, and are integral to China’s efforts to create a technological and industrial system of “intelligent connected vehicles”, according to state-backed media.

But, while many companies claim to have the technological capabilities to supply these vehicles within a few years, there are many substantial tests and roadblocks to surpass, according to experts.

“The robotaxi companies are really doing trials, not only for themselves, but also for the whole industry,” said Yale Zhang Yu, managing director of Shanghai-based research company Automotive Foresight, adding that a few high-profile accidents have the power to set the technology back significantly.

“Then it remains a question about whether the technology can handle new environments and conditions once policy permits the taxis to travel through entire cities.”

Currently, while early robotaxi demonstrations provide a research and testing opportunity for the technology, the chosen areas are relatively small with favourable traffic conditions.

The demonstration areas also differ in terms of what technologies are allowed to be tested. While taxis in the suburban Pingshan district of Shenzhen operate fully autonomously, ones in the Nanshan district require a staff member to sit in the car to monitor for safety.

Policy uncertainty is even greater in the personal L4 vehicle space due to issues of liability.

“L4 cars do not require hands on the steering wheel, meaning, in the case of an accident, there is a question as to who the responsible party is,” said Zhang.

The liability dilemma is exacerbated in Level 3 cars, which only require drivers to take control of the vehicle under certain conditions.

Therefore mass adoption of autonomous vehicles calls for more comprehensive policy measures and a legal infrastructure for all self-driving levels and taxi operators, according to Zhang.

Costs and heavy technical requirements also remain a major barrier, with L4 cars requiring expensive equipment such as sensors and laser radar, pricing them at five times more than an average vehicle, he added.

With uncertainties over the short-term profitability and regulation of L4 vehicles, investment in the self-driving sector appears to have slowed.

According to local media reports, publicly disclosed investment events related to autonomous driving in 2022 were over 20.5 billion yuan (US$2.82 billion), less than a third of the figure a year before.

“Many companies are still investing in autonomous vehicle technology but are more cautious about it,” Brady Wang, a technology analyst with Counterpoint Research, told the Post via email.

Such factors do not bode well for China’s L4 2030 target, according to the analyst. Based on current progress, he said the chances of China hitting its target for L4 cars of 20 per cent of total vehicle market share by 2030, appears “quite ambitious and unlikely”.

“Our forecast shows a more realistic estimate for Level 4 adoption by 2030 may be in the 5 to 10 per cent range,” he added.

Prospects are better in partially autonomous, Level 2 vehicles, which assist in driving but stipulate driver attention at all times, and which are less demanding when it comes to hardware. These vehicles are predicted to exceed a market share of 50 per cent by 2025, said Wang.

However, some experts are more optimistic about China’s L4 vehicle goals, subject to the implementation of the necessary policies, rules, traffic laws and regulations.

“I am confident that it will be worked through,” said Tu Le, managing director of mobility consultancy Sino Auto Insights, adding that not all of today’s autonomous vehicle companies will survive investor scrutiny, increased competition and tougher regulation.