China’s tech hub Shenzhen is set to allow self-driving taxis to operate across the entire city, marking the end of years of limited pilot zones and signaling a major step forward in the country’s autonomous driving ambitions.

Pony.ai announced on Friday that it had become the first company to receive a full citywide robotaxi permit, though the rollout will be implemented in phases.

The approval represents a milestone in China’s effort to integrate autonomous vehicles into daily urban transport. Until now, self-driving taxis were confined to designated test zones on the outskirts of major cities.

Pony.ai’s expansion follows its strategic partnership with local taxi operator Xihu Group, formed in June. The two companies plan to deploy more than 1,000 of Pony.ai’s seventh-generation robotaxis across Shenzhen in the coming years.

Unveiled in April 2025, the new model reportedly reduces material costs by 70% compared with earlier versions and was co-developed with Toyota, as well as state-owned automakers BAIC and GAC.