Driverless taxis in mainland China could control more than 6% of the market: HSBC
HSBC says potential addressable market for robotaxis in mainland China is estimated to be around US$40 billion a year
The projection represented 6.2 per cent of the total taxi and ride-hailing businesses in China, which had a market size of 465 billion yuan (US$64.9 billion) in 2024, according to market consultancy iResearch.
“China is at the forefront of the global autonomous driving industry, aided by better connectivity, well-developed 5G infrastructure and a consumer base more open to autonomous driving,” HSBC said in its report. “Robotaxis are fast approaching an everyday reality, albeit within strictly controlled parameters.”
Aside from serving human passengers, autonomous taxis on the mainland could also generate revenue worth US$30 billion a year by offering logistics and delivery services, the report added.
According to prevailing standards, robotaxis have level 4 (L4) self-driving capabilities. That means they did not require human intervention in most circumstances, according to SAE International, a global body. L4 was seen as an important step on the way to L5 fully autonomous driving, which would enable manufacturers and freight companies to operate driverless fleets.