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Pony.ai Robotaxi Catches Fire After Malfunction, No Injuries Reported

Pony.ai, one of China’s leading autonomous vehicle companies, confirmed on Wednesday that one of its driverless robotaxis caught fire in Beijing after a system malfunction triggered an emergency stop. The incident occurred while the vehicle was being handled by service personnel. Fortunately, no passengers were on board, and no injuries were reported.

According to a company statement, the car—operating without a human driver—experienced an “abnormal statusearly Tuesday morning, prompting its safety system to initiate a stop. Service staff arrived within two minutes, but during the response process, the vehicle ignited and caught fire.

No collision occurred and no one was injured. The specific cause is currently under investigation,” Pony.ai stated.

Incident Footage and Public Response

Videos circulating on Chinese social media show thick black smoke rising from a multi-lane highway, with a burned-out vehicle straddling a road divider. The car appears to be a Lexus, the luxury brand under Toyota, which is a known backer of Pony.ai. However, Reuters was unable to verify the model or authenticity of all media posted online.

An unnamed Beijing traffic police officer told Qingdao city’s broadcast outlet that the fire broke out when the engine was restarted, further complicating the cause analysis.

Regulatory and Industry Implications

The incident comes at a sensitive time, as Chinese regulators have begun tightening scrutiny on autonomous driving systems following a recent fatal autopilot-related crash involving a Xiaomi vehicle. The government has been encouraging the deployment of autonomous driving technology, with Pony.ai, Baidu, and others receiving approval to operate fully driverless robotaxis in designated urban zones.

However, high-profile failureslike the Waymo robotaxi incident in San Francisco where the vehicle was set on fire by a crowd—have raised broader concerns about safety, emergency response, and public trust in autonomous vehicles.

Ongoing Investigation

Neither Pony.ai nor Toyota provided additional details as of this writing. The cause of the fire remains under investigation, and regulators are likely to monitor the situation closely as the government refines its autonomous vehicle safety standards.

Toyota to Launch Wholly Owned EV and Battery Unit in China

Toyota Motor announced on Wednesday that it will establish a wholly owned company in Shanghai to develop and manufacture electric vehicles (EVs) and batteries for its Lexus brand. Production is expected to begin in 2027, with an initial production capacity of approximately 100,000 units annually. The new facility will also create about 1,000 jobs in its start-up phase.

The new venture will focus on creating a Lexus-branded electric vehicle and developing battery technology for these vehicles. In addition, Toyota has stated that it will collaborate with the Shanghai municipal government on carbon-neutral initiatives, contributing to China’s goal of achieving carbon neutrality by 2060.

 

Toyota Bets on Hybrids as EV Demand Slows, Aiming for a Hybrid-Dominated Future

Toyota, the world’s largest automaker, is pivoting towards a hybrid-only lineup for its Toyota and Lexus brands, moving away from gasoline-only models as demand for electric vehicles (EVs) begins to decelerate. Nearly three decades after introducing the Prius, Toyota remains committed to its “multi-pathway” strategy, which includes hybrids, hydrogen fuel cells, and green fuels, rather than focusing solely on EVs. Despite the automotive industry’s push for all-electric vehicles, Toyota Chairman Akio Toyoda predicts that EVs will constitute just 30% of the global market. With models like the Camry and RAV4 already transitioning to hybrid-only variants, Toyota aims to strengthen its market dominance by offering more plug-in hybrids, particularly as U.S. emissions regulations become stricter. By 2030, Toyota plans to convert 30% of its global fleet to EVs while continuing to innovate within the hybrid space, giving the company more time to develop next-generation technologies and navigate evolving market demands.