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China’s autonomous driving players struggle to turn a profit despite heavy investments

  • Banma Network Technologies, an Alibaba-backed intelligent-vehicle-solutions provider, has replaced its CEO amid an overhaul
  • Other self-driving vehicle projects by Big Tech firms and start-ups also face challenges in generating a steady stream of revenue

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An autonomous-driving simulator seen at a Hong Kong exhibition. Photo: SCMP / Eugene Lee
Ann Caoin Shanghai

From Big Tech firms to start-ups, China’s autonomous-driving system developers are struggling to make noticeable gains in turning their vision of a future full of self-driving cars into steady profits.

Banma Network Technologies, an intelligent vehicle start-up that develops technology for autonomous-driving systems, this week replaced its CEO Zhang Chunhui, who had served in the position for four years. It is seen as part of efforts by Banma’s backer, e-commerce giant Alibaba Group Holding, to revamp the unit and step up commercialisation.

Alibaba did not immediately respond to a request for comment on Wednesday.

Artificial intelligence and internet search giant Baidu, which launched its open-source autonomous-driving platform Apollo in 2017, has also hit roadblocks in its self-driving technology project. Despite receiving massive internal investments for research and development, the unit has yet to turn a profit.

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Baidu wins permits to offer fully driverless robotaxi service in Beijing

Baidu wins permits to offer fully driverless robotaxi service in Beijing

While Baidu expects its Apollo Go robotaxi service to be available in 100 cities by the end of this decade, so far it has only secured approvals to cover select areas in four major Chinese cities for the commercial operation of fully driverless taxis.

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