Shenzhen Accelerates China's Driverless Car Hopes

Starting Monday, autonomous vehicles (AVs) will have permission to operate without a driver across a large part of Shenzhen.

Future is Coming

While the US has taken an early lead in developing AVs, China has just made a giant step forward, with fully driverless cars becoming a common sight. In Shenzhen, a city of 18 million, AVs will now have permission to operate without an actual person in the driving seat. However, a person still has to be present in the vehicle.

Robotaxis have so far operated on a more limited basis with local authorities' permission. Shenzhen’s new laws now provide a crucial framework for liability in case of an accident.

As long as there is a driver in the AV, they are liable in the event of an accident. In case a car defect is the main reason behind the accident, the owner has the right to seek compensation from the manufacturer.

Gear Shift

With this move, China has placed its foot on the accelerator, with Beijing making AV technology one of the key areas in its five-year plan. Shenzhen hopes the industry will reach revenues of 200 billion yuan by 2025.

DeepRoute.ai, the company behind robotaxis currently on Shenzhen roads, aims to have at least 1,000 of them in the next few years. By then, more detailed regulations will arrive as well. The company is looking to bank on mass production and wants to lower manufacturing costs even further.

Baidu, another technology company from China, has recently announced its new AV with a detachable wheel. It will be available at almost half the price of its previous generation.

Next Big Step for Artificial Intelligence

Machine learning is expected to grow by 48% in the automotive industry, and it looks like the first results are already here. The AVs currently in use rely fully or partially on AI systems.

According to recent AI predictions, over 33 million autonomous cars will be in use by 2040.

A fully autonomous John Deere tractor debuted at CES at the start of 2022.