Pony.ai becomes first to win citywide robotaxi permit in China's Silicon Valley

China's Silicon Valley, Shenzhen, is about to allow self-driving taxis tooperate throughout the city, ending years of pilot zones and tight limits.

Pony.ai announced Friday it was the first company to receive a robotaxi permit for the entire city, though the coverage area will be rolled out in phases.

The news marks a milestone for China's push to integrate autonomous vehicles into everyday transport.

Until now, self-driving taxis in China have been restricted to specific areas on the outskirts of major urban areas, rather than the entire city.

Pony.ai's rolloutis part of a partnership with local taxi firm Xihu Group. Thetwo companiesformed a strategic partnership in June and plan to deploy over 1,000 of Pony.ai's seventh-generation robotaxis across Shenzhen in the coming years.

Pony.ai unveiled its seventh-generation taxi in April this year and said it was able to cut materials costs by 70% compared with earlier models. The robotaxi operator said it developed the car together with Toyota and state-owned local operators BAIC and GAC.