James Peng, co-founder and CEO of Pony.ai, delivers a speech at Auto Shanghai on April 23, 2025. [Photo provided to chinadaily.com.cn]

Pony.ai unveiled its seventh-generation robotaxi solution on Wednesday at Auto Shanghai, which is the first Level 4 system based on vehicle-grade chips in the world.

The new solution, with a designed life of 10 years or 600,000 kilometers, features a 70 percent reduction in hardware cost compared with the previous edition, said the autonomous driving firm.

Pony.ai also showcased three new models featuring the solution in collaboration with Toyota, BAIC, and GAC, with their production scheduled to start later this year.

CEO James Peng called 2025 as the "first year of robotaxis' mass production", which also sees the culmination of the company's two-year "Kunlun Project".

Named after the rugged Kunlun Mountain Pass, the project symbolizes durability and reliability under extreme conditions.

The three new models—Toyota bZ4X, BAIC's Arcfox Alpha T5, and GAC Aion V—highlight deep cooperation across the auto industry.

Each vehicle is equipped with sensors in six categories, including nine lidars and 14 cameras and a suite of sensors, to enable a 360-degree awareness and 650-meter object detection, even in rain, snow, or fog.

The system's modular design allows for easy adaptation across vehicle types, including upcoming autonomous trucks, said Peng.

The debut of these cars is not just a launch—it's a deployment. Peng said road testing has already begun in multiple cities, with fleet operations scheduled to start in the second half of 2025.