On the morning of the 26th last month, Wuhan, located in the heart of China and known as a transportation hub. The autonomous driving robot taxi app, "Apollo Go," developed by the Chinese information technology (IT) corporation Baidu, was activated. It was possible to call for a ride in areas excluding the city center, airport, and nearby train stations, covering an area of 3,000 square kilometers (approximately 900 million pyeong). This area is five times larger than Seoul (approximately 600 square kilometers) and is the largest autonomous driving zone in China. The citizens of Wuhan appeared familiar with Apollo Go. When a reporter riding Apollo Go for the first time couldn't open the door, a passing Chinese woman in her 50s said, "Please enter the last digits of your phone number."
Chinese telecommunications and automobile corporations are rapidly enhancing their autonomous driving technology, thanks to the full support from central and local governments. China has grown the electric vehicle industry to the world's largest scale through the strategy of "government-led, market-driven," which is now also applied to foster autonomous driving. Cities like Beijing, Shenzhen, and Wuhan, recognized as the largest autonomous driving pilot zones in China, are relaxing regulations related to the autonomous driving industry and strengthening support. If this continues, it is likely that the autonomous driving industry will also grant China global leadership.
◇ Wuhan, the largest autonomous driving pilot zone in China... Focus on the next technology instead of electrification
Wuhan holds several records in the field of China's autonomous driving industry. First, in September 2019, it established the first "National Intelligent Connected Vehicle Pilot Zone" in central China, marking the beginning of the serious development of the autonomous driving industry. It opened an economic and technological development zone spanning 28 square kilometers (approximately 8.5 million pyeong) in southern Wuhan. In August 2022, it became the first in China to issue licenses allowing completely unmanned taxis to operate without safety personnel. The same year, it permitted completely unmanned autonomous vehicles to operate at night. Last year, it also began a service that allowed completely unmanned autonomous vehicles to travel between the city center and the airport highway, also a first in China.
The Wuhan government is fully supporting the autonomous driving industry, as evidenced by the annual emergence of related policies. Especially noteworthy is the "Intelligent Connected Vehicle Promotion Ordinance" announced last November, which took effect from the 1st of last month. This ordinance expands the operation scope for autonomous vehicles like robot taxis and unmanned delivery vehicles and includes provisions for data and safety management, tax benefits for related corporations, and the provision of research and development (R&D) subsidies. Xu, deputy director of the IoT research institute of the Wuhan University Satellite Navigation Technology Research Center, said, "Wuhan is building industry standards beyond new technology tests and provides not only the most abundant testing scenarios but also the fastest soil for technology realization and application," according to local media.
Wuhan provides an environment in which the autonomous driving industry must develop in various ways. Firstly, being one of China’s top five automobile cities is significant. More than 1,200 finished vehicle and parts companies, including the state-owned Dongfeng Motor Corporation, France's Citroën, Japan's Honda, America's General Motors (GM), and China's Geely, have established themselves in Wuhan. The number of cars they produce annually reached 1.9 million in 2017. However, as the automotive corporations in Wuhan lagged in electrification, the city's economy began to suffer. Autonomous driving caught Wuhan's attention at this moment.
Hubei Daily noted, "Amid the existing automotive industry in Wuhan facing a transformative phase, the new quality productivity of autonomous driving provides assistance and support for the development of Wuhan's intelligent connected vehicle industry." The Interface News commented, "Having missed the boom in new energy vehicles (electric, hydrogen, and hybrid vehicles), Wuhan will not want to miss the opportunity in autonomous driving," stating that it is focusing on intelligent networking as the focal point of automotive industry development. The development of the automotive industry has led to the establishment of robust related clusters, and with the world's largest number of 1.3 million university students, securing talent has also contributed to Wuhan's rapid pivot toward autonomous driving.
Wuhan aims to become a world-class innovative city in the field of autonomous driving by 2030. An official from the Wuhan National Intelligent Connected Vehicle Pilot Zone stated, "Based on core data such as the number of autonomous service vehicles in operation, order volume, driving distance, and open road area, it has already become the largest autonomous driving operation and service area in the world," according to The Interface News.
◇ Beijing and Shenzhen also promote autonomous driving... The Chinese leadership emphasizes fostering consumption growth through technology
Although Wuhan is leading, other local governments in China are also accelerating the development of the autonomous driving industry. Beijing, the capital of China, is a typical example. As of the 1st, Beijing is vigorously implementing the "Beijing Autonomous Vehicle Ordinance." The focus is to provide a legal basis for Level 3 and above vehicles, which do not require driver intervention except in emergencies, to operate on roads. Importantly, it has also clarified responsibility in case an accident occurs during autonomous driving. A representative from the Chinese automotive industry commented, "Until now, it was unclear who should take responsibility in case of an accident, which had been a burden for mass-producing Level 3 vehicles," stating that the industry’s headache has been resolved. Additionally, the southern city of Shenzhen has officially introduced autonomous bus routes last month, putting effort into related policies.
As it stands, it cannot be ruled out that China will seize global leadership in autonomous driving, following its leadership in the electric vehicle sector. Li Chunlin, deputy director of the National Development and Reform Commission, China’s macroeconomic umbrella agency, noted last month, "We must utilize technology to foster new growth points in consumption," mentioning various fostering areas, including autonomous driving. Guotai Junan Securities projected that by 2030, autonomous vehicles will account for more than 40% of all vehicle operations.