This Week in The Autonomy Economy™
China’s Autonomous European Beachhead Might Have an Expiration Date
This Week in the Autonomy Economy, China’s Autonomous Belt and Road Initiative continued to take hold in Europe as EU Ministers back a cross-border initiative for autonomous vehicle testbeds.
In South Korea, Park Min-woo, President of Hyundai Motor Group’s Advanced Platform Division and CEO of 42dot, stressed the importance of collaboration with global partners to speed up commercialization of autonomous driving.
While Hyundai looks to speed up the commercialization of autonomous driving through partnerships, autonomy is rapidly going global. With India removing regulatory barriers, Saudi Arabia codifying autonomous vehicle regulations and Portugal opening the door to autonomous vehicle testing, the autonomy economy is going global.
As the autonomy economy goes global, we will be covering it and taking our proprietary field reports overseas.
📰 Need to Know: This Week in the Autonomy Economy
How is China establishing an autonomous foothold in Europe, and where are they deploying?
Chinese autonomous vehicle companies are aggressively scaling across Europe by embedding themselves with local transport operators, tech firms, and automakers. In a swift multi-week wave, three major players secured critical European territory: Baidu’s Apollo Go won a Level 4 permit in Switzerland to operate its AmiGo vehicles with PostBus across an 80 km² area; WeRide partnered with Uber and AVOMO to launch robotaxis in Madrid; and Pony AI teamed up with Bolt and Stellantis for a pilot in Luxembourg. When adding in WeRide’s presence in France, Belgium, and Slovakia, along with Momenta testing in Munich, Chinese autonomous technology now holds operating permits or active testbeds in roughly a quarter of all EU member states.
Why do experts believe China’s European AV expansions might have a hidden expiration date?
While European countries are currently welcoming low-cost Chinese autonomous vehicle fleets, the European Union has a track record of reversing course due to geopolitical and cybersecurity concerns. The EU is currently advancing binding cybersecurity legislation to legally mandate the complete removal of Huawei and ZTE components from critical telecom infrastructure, turning what was once a voluntary guideline into a hard obligation. Industry analysts look at this 5G shift as a playbook for the AV space; the EU may let Chinese robotaxi infrastructure build a beachhead today, but they hold the ultimate authority to pass bloc-wide legislation that could purge Chinese hardware and software from European roads tomorrow.
When will autonomous commercial trucking shift away from human safety drivers?
The commercial freight sector is rapidly transitioning towards fully-autonomous operations (no safety attendent) to unlock profitability in logistics. Volvo Autonomous Solutions has officially targeted Q1 2027 to entirely remove human safety drivers from their trucks, aiming to scale their driverless fleet to over 300 units by the end of that year with an eye toward generating $3 billion in autonomous revenue within five years. Simultaneously, middle-mile logistics are solidifying, as seen by PepsiCo expanding its multi-year partnership with Gatik to integrate autonomous middle-mile trucks deeper into its North American supply chain.
How are global governments rewriting the rules to welcome autonomous vehicles?
Governments worldwide are dismantling long-standing bureaucratic walls to capture the economic upside of autonomy. India opened the world’s third-largest car market by removing a restrictive radar spectrum licensing barrier that had previously blocked AV deployment. Saudi Arabia took a massive step toward commercialization by amending its Executive Regulations of the Traffic Law, hardwiring exact owner and operator liability rules into its traffic code while exempting fully autonomous vehicles from conventional licensing. Closer to Europe, Portugal is opening its public roads to testing next month, and Belgium became the fifth European country to officially approve the rollout and subscription sale of Tesla’s FSD Supervised.
What aggressive commercial and infrastructure moves is Waymo making to dominate the U.S. market?
Waymo is moving past simple ride-hailing to build a premium ecosystem and secure massive testing infrastructure. On the consumer side, they launched Waymo Premier, a $29.99 monthly subscription service, three times the cost of Uber One that locks in user loyalty with priority pickups and 10% cash back. On the infrastructure front, Waymo capitalized on Apple’s exit from the automotive space by purchasing Apple’s former 5,500-acre Arizona proving ground for $220 million. This massive land acquisition gives Waymo unparalleled private track capacity to test complex edge cases as city officials in future markets, like New Orleans, prepare for a projected 2027 commercial launch.
What’s Moving the Markets
China’s Autonomous European Beachhead Might Have an Expiration Date
In the span of two weeks, Chinese robotaxi companies planted three flags on the European continent. Baidu’s Apollo Go won a Level 4 permit in Switzerland to operate AmiGo in partnership with PostBus.
WeRide, Uber and AVOMO announced they are bringing robotaxis to Madrid later this year. Pony AI announced they are preparing to launch a robotaxi pilot this year in Luxembourg in partnership with Bolt and Stellantis.
Three countries on the European continent, three Chinese robotaxi companies, all seemingly moving in lockstep. This is the Autonomous Belt and Road Initiative taking place. It’s no longer a forecast, it’s a strategy, and if you play board games, the game of Risk just became real.
It is not just three moves, it’s also WeRide’s operations in Belgium, their permits to deploy in France and their current plans to deploy autonomous vehicles in Slovakia with the Prime Minister’s blessing.
Then there is Pony AI, who has deployed robotaxis in Croatia in partnership with Verne, Baidu’s planned robotaxi launch in Germany with Lyft, and Momenta testing in Munich with commercial service on the horizon with Uber.
Add this up and Chinese robotaxis currently have a presence in five EU countries and permits which would bring the total to seven. That is a presence or a permit to operate in a quarter of all EU member states.
A quarter of all member states is a beachhead. This beachhead is forming just as the EU’s relationship with China-based Huawei is deteriorating over a pending bloc-wide ban, after initially allowing their infrastructure to be deployed.
The EU is now moving forward with new cybersecurity legislation that is designed to legally mandate the removal of Huawei and ZTE components and technology from critical telecom networks across all member states.
If passed and signed into law, this legislation would transform the 2020 voluntary guidelines into a binding obligation, forcing the hands of member states that have been reluctant to remove the hardware from their infrastructure.
Just as with 5G, the EU might let Chinese autonomous vehicle companies build a beachhead using cheap tech and local partners today, but they’ve already proven they are willing to correct a miscalculation through EU-wide legislation.
The game of Risk is real, the pieces are moving, but the EU ultimately still owns the board and calls the shots on the European continent.
Our Take: History doesn’t repeat itself, but it often rhymes – Mark Twain
OMEGA’S TAKE ON THE AUTONOMY ECONOMY
The autonomy economy is navigating a critical juncture defined by two distinct forces: a tightening macro-financial environment pressuring long-duration assets, and an operational transition where service reliability, not raw autonomous capability, dictates market viability.
OMEGA is AUTNMY AI’s proprietary intelligence system, available exclusively to clients. Start a conversation today.
Piquing Our Interest
Waymo Launches Subscription Service Waymo has launched Waymo Premier, a $29.99 monthly subscription, 3x the cost of Uber One and Lyft Pink, offering 10% Waymo Cash back and priority pickups.
Waymo Bought Apple’s Autonomous Vehicle Proving Ground for $220M Waymo paid $220 million for the 5,500-acre Arizona test course that Apple purchased for $125 million.
2027: Is That the Year Waymo Launches Service in New Orleans? New Orleans city officials are looking to have more say in how Waymo deploys in the Crescent City as the company eyes a 2027 commercial launch.
Volvo Autonomous Solutions Prepares to Go Driver-Out in Q1 2027 Volvo Autonomous Solutions is planning to remove the safety drivers in Q1 2027, with the goal of scaling to more than 300 autonomous trucks by year-end and targeting roughly $3 billion in autonomous revenue within five years.
PepsiCo and Gatik Expand Autonomous Middle-Mile Partnership PepsiCo signed a multi-year deal with Gatik to integrate autonomous middle-mile trucks across their North America supply chain.
House Republicans Urge D.C. Mayor to Allow Robotaxis in The District Three House Republicans are urging D.C. Mayor Bowser to allow robotaxis to be deployed, while demanding a “clear and ambitious implementation timeline” be delivered to the House Oversight Committee by July 5.
EU Ministers Back Cross-Border Initiative for Autonomous Vehicle Testbeds Eighteen EU member states signed a joint declaration to build large-scale cross-border autonomous vehicle testbeds, moving to harmonize permitting and approval across borders so Europe can compete as the autonomy economy continues to emerge with a single coordinated framework rather than 27 fragmented ones.
Hyundai Motor Group Eyes Autonomous Driving Partnerships Hyundai is pursuing global partnerships to accelerate the development and commercialization of autonomous driving.
Wayve and Uber Open London Interest List Uber and Wayve are preparing to deploy supervised robotaxis in London in the coming months, as they seek regulatory approval.
Tesla’s FSD Supervised Approved in Belgium Tesla is now approved to activate FSD Supervised and sell subscriptions in Belgium, making it the 5th European country to allow the technology to be deployed on public roads.
Bolt, Pony AI and Stellantis to Deploy Robotaxis in Luxembourg Another European country, another Chinese robotaxi deployment. This time it’s a pilot, starting supervised with full autonomous as the goal. The trend is clear, China is exporting autonomy to Europe and very few seem to be paying attention.
India Opens Door to Autonomous Vehicles India has removed the radar spectrum license requirement that blocked the deployment of autonomous vehicles in the country, opening the world’s third-largest car market, where more than 177,000 people died on the roads in 2024.
Portugal to Allow Autonomous Vehicle Testing Next month, autonomous vehicles will be able to be tested on public roads in Portugal, with a side of heavy-handed regulation.
Saudi Arabia Updates Traffic Regulations to Govern Autonomous Vehicles Saudi Arabia amended its Executive Regulations of the Traffic Law to assign legal responsibility for autonomous vehicles to owners and operators and exempt fully autonomous vehicles from conventional licensing, hardwiring liability and registration rules into the Kingdom’s traffic code as it pushes toward commercial deployment.
Chery and Yinwang to Jointly-Develop Autonomous Vehicles Chery Automobile and Huawei subsidiary Yinwang are accelerating the development of autonomous vehicles to coincide with the commencement of China’s 15th Five-Year Plan period.
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Trending on X
AmiGo is a Go
China’s Autonomous Belt and Road Initiative has taken hold in Switzerland, as the country’s Federal Roads Office (FEDRO) has officially approved the deployment of Baidu Apollo Go RT6 autonomous vehicles in partnership with PostBus, beginning with safety drivers in an 80 km² service area across the cantons of St. Gallen, Appenzell Ausserrhoden, and Appenzell Innerrhoden.
Our take: First, Europe emerged as a major robotaxi market. Perhaps Switzerland is next?
Hertz Isn’t Just a Rental Car Company Anymore
Gil West, CEO of Hertz, joined Grayson Brulte on The Road to Autonomy podcast to discuss the launch of Oro Mobility and how a century of fleet operations is helping robotaxis to scale.
Tesla Bets Big on Las Vegas as Waymo Buys Apple’s Proving Grounds
This week on Autonomy Signals, Grayson Brulte and Rob Grant discuss Tesla’s application to operate up to 5,000 robotaxis in Las Vegas, Waymo’s $220 million purchase of Apple’s former proving grounds, and Neolix’s partnership with Quickbot to solve the last 50 meters of autonomous delivery.
Robotaxis Get the Hype, Autonomous Trucks May Get the Profits
This week on Autonomy Markets, Grayson Brulte and Walter Piecyk discuss autonomous trucking reaching an inflection point, Waymo acquiring Apple’s Arizona proving ground and Tesla filing for a robotaxi permit in Las Vegas.
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