Evelyn Zhang

Evelyn Zhang from Daiwa Capital Markets requested details on the overseas expansion plan, the regulatory landscape, and the operational stage of its services in the Middle East, South Korea, and Europe.

Answer

CEO Jun Peng outlined a strategy focused on high-growth markets with supportive regulations, leveraging local partnerships. CFO Haojun Wang added that scaling commercial fully driverless services is most advanced in the U.S. and China. In other regions, regulations primarily permit testing with a safety driver, and commercialization is limited to pilot programs. He stressed that scaling from dozens to hundreds of vehicles is a significant operational leap that requires a higher level of safety and rigor.

Evelyn Zhang from Daiwa Capital Markets requested more details on the overseas expansion plan and the regulatory status (testing vs. commercial) in markets like the Middle East, South Korea, and Europe.

Answer

CEO Jun Peng reiterated the strategy of targeting high-growth markets with supportive regulations and strong local partners. CFO Haojun Wang added that outside of the US and China, most countries are still in the safety-driver testing phase. He noted that a sustainable fare-charging model will take time to mature in these regions and that scaling from dozens to hundreds of vehicles is a complex operational leap that PonyAI is focused on mastering in its primary markets first before broad replication.

Asked for details on the overseas expansion plan, the regulatory environment in those markets, and the current operational stage (testing vs. commercial) in the Middle East, South Korea, and Europe.

Answer

The strategy focuses on high-growth markets with local partners. While progress is being made in Dubai, South Korea, and Luxembourg, most countries outside the US and China only have regulations for testing with a safety driver. True commercial, fare-charging models in these regions will take time to mature. The company is focused on building the operational capability to scale from dozens to hundreds of vehicles, a complex step necessary before replicating the model globally.