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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.

Uber Teams Up with Pony AI to Launch Self-Driving Taxis in Middle East Pilot Program

Uber announced on Tuesday a new partnership with China-based autonomous driving company Pony AI, marking its latest move to expand into the robotaxi market. The collaboration will begin with a pilot launch in a key Middle Eastern market later this year, with plans for further international rollout.

During the pilot phase, Pony AI vehicles will operate with onboard safety drivers, with the goal of transitioning to fully autonomous commercial service as regulatory and technical milestones are met.

The deal is part of Uber’s growing portfolio of partnerships aimed at strengthening its foothold in self-driving mobility, as it competes with rivals like Lyft and Tesla. In recent weeks, Uber also announced collaborations with May Mobility and Momenta, and expanded its strategic alliances with WeRide and Alphabet’s Waymo.

Pony AI shares rose nearly 13% in premarket trading following the news, while Uber shares dipped slightly by 1%. Pony AI, which went public on Nasdaq in November, is backed by Toyota and has active robotaxi licenses in major Chinese cities including Beijing, Shanghai, Guangzhou, and Shenzhen. The company is also exploring expansions into South Korea, Luxembourg, Hong Kong, and other international markets.

As the U.S. government continues to ease certain regulatory barriers for self-driving vehicles—while requiring incident reporting—companies like Uber and Pony AI are accelerating efforts toward large-scale robotaxi deployment.

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.