China resumes robotaxi permits after 3-month freeze on new licenses

China has resumed issuing robotaxi licenses after a three-month freeze triggered by a Baidu autonomous vehicle outage in Wuhan, clearing the path for companies including Momenta and Baidu to restart operations.

Chinese regulators resumed issuing robotaxi permits after a three-month suspension, allowing Momenta to restart trials in Shenzhen and showing that Baidu's Apollo Go operations in Wuhan may also recover.

"The resumption is occurring gradually in some cities following the completion of an industry-wide review in late June," people familiar with the matter told Bloomberg, declining to be identified as they were not authorized to speak to media.

Regulators suspended new autonomous driving permits in April after more than 100 Baidu robotaxis suffered a system malfunction on roads in Wuhan on March 31, stranding passengers and causing traffic disruptions. The incident triggered a full safety review across the industry that concluded in late June.

The freeze had stalled China's fast-growing robotaxi sector, where companies including Baidu, Pony.ai, WeRide and Momenta had been racing to expand commercial operations. The resumption allows these companies to return to their growth trajectories, with Shenzhen becoming a key testbed after amending its intelligent connected vehicle regulation to explore opening the entire city to robotaxis.

Momenta announced on July 21 that it received a permit for intelligent connected vehicle road testing in Shenzhen, making the southern tech hub its fourth core city in China after Shanghai, Suzhou and Wuxi. The company was among the first to receive a permit under the resumed licensing regime, according to the Bloomberg report.

Baidu's operations in Wuhan, the central Chinese megacity that had become the company's flagship robotaxi market, are also showing signs of recovery. Since early July, local residents have posted videos and photos on Chinese social media showing Apollo Go vehicles back on the streets, some with safety drivers inside. Hundreds of Baidu's robotaxis had been pulled from service because of the safety review.

The March 31 incident involved dozens of Apollo Go robotaxis stalling on Wuhan roads, with some passengers stranded on a busy elevated road. Wuhan traffic police said at the time that a preliminary investigation showed the incident was caused by a system malfunction. Some local media reports cited industry insiders as saying the vehicles likely stalled after encountering unexpected situations that triggered a safety self-check mechanism.

Shares of Chinese autonomous driving companies rose on the news. Baidu's Hong Kong-listed stock (9888.HK) gained 2.6%, Pony.ai (2026.HK) climbed 3.3%, and WeRide (800.HK) added 0.3% on July 23. Momenta (6880.HK) also traded higher after announcing its Shenzhen permit earlier in the week.

The regulatory green light removes a key overhang for the sector. Before the freeze, China had been among the most aggressive markets globally for robotaxi deployment, with Baidu's Apollo Go operating the country's largest autonomous ride-hailing fleet. The resumption suggests regulators are satisfied with the industry's safety protocols after the review, though the gradual pace of license issuance indicates continued caution.

This article is for informational purposes only and does not constitute investment advice.