With U.S. Nod, Didi Hitches Ride on Autonomous-Vehicle Bandwagon

Ride-hailing leader Didi Chuxing has received permission to test its autonomous vehicles in California, making it the latest Chinese company to get the green light to conduct driverless road tests either at home or in the U.S.

Didi is one of 53 companies that have been given a license for autonomous vehicle road tests in California, according to the website of the state’s Department of Motor Vehicles.

The move comes as Didi has ramped up its efforts to develop autonomous vehicles since last year, with company CEO Cheng Wei saying that the area will be a crucial part of Didi’s business in the future.

Didi’s choice to undertake driverless road tests in the U.S. — instead of its home country, which has recently rolled out nationwide rules for the technology — has highlighted the company’s international ambitions.

“It will be easier for Didi to be recognized internationally if they conduct road tests in the U.S., where some states, including California, have more relaxed rules, such as allowing road tests without a driver,” said James Gong, lawyer of the Beijing office of London-based law firm Herbert Smith Freehills.

In November, Chinese automaker Changan Automobile (Group) Co. Ltd. also said it received clearance to test autonomous vehicles on public roads in California.

In April, Beijing rolled out a national policy to legalize public road tests of autonomous vehicles. The policy came after many major Chinese cities — including Beijing and Shanghai — began to roll out local rules starting late last year.

Many companies, including the state-owned SAIC Motor Corp. Ltd., electric car startup NIO and e-commerce giant Alibaba Group Holding Ltd., have since attained Chinese local licenses as they compete to get an early lead in the fledgling sector.

On Monday, Tencent Holdings Ltd. said it has received permission from Shenzhen authorities to conduct driverless car road tests in the city.

Clearing this regulatory hurdle will pit China’s largest internet company against Baidu Inc., the search giant that is one of the most successful Chinese players in the sector so far.

Even foreign automakers operating in China have begun to jump on the bandwagon.

On Tuesday, German carmaker BMW said it has received a license to conduct road tests in Shanghai.

Contact reporter Mo Yelin (yelinmo@caixin.com)