On June 22, 2025, Tesla officially launched its Level 4 fully autonomous Robotaxi service in Austin, Texas, marking a significant milestone in the evolution of self-driving vehicles. This service, though currently operating with a limited fleet of about 10 vehicles and restricted to pre-invited passengers, represents Tesla's first tangible step into the commercial Robotaxi arena. The vehicles navigate roads autonomously using an array of cameras and sensors, with remote operators on standby to intervene if necessary. While this pilot is modest in scale, it signals Tesla's intent to eventually expand its footprint in the autonomous ride-hailing market.
However, Tesla is not alone in this race. Globally, the competition to commercialize Robotaxi services is heating up, with China and Germany making notable strides. China, in particular, has emerged as a frontrunner. Last year, Chinese authorities granted approval to nine companies—including BYD, Nio, and Changan Automobile—to test Level 3 and Level 4 autonomous driving technologies on major city roads. This move has catalyzed rapid progress, with companies like Pony.ai already operating 200 Robotaxis and aiming to scale up to 3,000 by 2026. Baidu’s Apollo Go service began nationwide operations in February 2025 and has amassed over 1.3 million kilometers of driving data. The Chinese government and industry players are ambitiously targeting the deployment of one million Robotaxis by 2030, underscoring the nation's aggressive push to lead in autonomous mobility.
Meanwhile, Volkswagen, Germany’s automotive giant, is making a bold entry into the Robotaxi market. On June 17, 2025, Volkswagen’s mobility subsidiary MOIA unveiled the 'ID. Buzz AD,' its first fully autonomous production vehicle. This electric van, equipped with 27 high-precision sensors—including 13 cameras, 9 lidar units, and 5 radar sensors—and powered by Intel's Mobileye autonomous driving system, is designed for rapid, large-scale deployment of autonomous services. The vehicle offers SAE Level 4 autonomous capabilities, allowing it to operate without human intervention under certain conditions.
Volkswagen plans to launch the 'ID. Buzz Robotaxi' commercially next year, starting with a fleet of 480 vehicles in Los Angeles through a partnership with Uber. This launch is anticipated to outpace Tesla’s own Robotaxi ambitions, as Tesla’s fully autonomous 'Cybertaxi' is slated for release only by 2027. Volkswagen’s ID. Buzz AD features an interior optimized for autonomous operation: the driver’s seat remains physically present but unused during driving, and the passenger seat is replaced with storage space to enhance comfort and accessibility. While its driving range per charge—approximately 450 to 470 kilometers—is somewhat less than some other electric vehicles, Volkswagen compensates with 200kW ultra-fast charging technology, minimizing downtime.
Despite these global advancements, South Korea finds itself at a crossroads in the autonomous vehicle revolution. The current government under Lee Jae-myung is actively preparing policies and support systems to transform the nation’s mobility landscape, positioning autonomous vehicles as a central pillar of industrial restructuring. The strategic roadmap involves phased efforts: from practical support and deregulation to bolstering technology and infrastructure networks.
Yet, South Korea faces significant hurdles. Although its autonomous driving platform technology is competitive with global big tech firms, restrictive regulations impede the accumulation of crucial real-world data. Current laws mandate that fully unmanned autonomous vehicles must still have a driver onboard even in approved zones, making genuine unmanned driving trials difficult. While designated test areas in Sejong, Pangyo, Seoul, and Jeju are expanding, these remain insufficient for comprehensive data collection.
For South Korea to accelerate commercialization, autonomous vehicles need to operate freely on public roads, gathering extensive data to reduce risk and improve safety. Achieving this requires a unified governmental approach; currently, responsibilities are fragmented among the Ministry of Land, Infrastructure and Transport (which oversees the Autonomous Driving Vehicle Act), the National Police Agency (which enforces the Road Traffic Act), and the Ministry of Trade, Industry and Energy. This disjointed policy landscape risks inconsistency and delays. Furthermore, legal and institutional challenges—such as clarifying liability in traffic accidents involving autonomous vehicles—must be addressed to prevent interruptions in testing and deployment.
South Korea’s cautious stance contrasts sharply with the aggressive commercialization seen in the US and China. In the US, Google’s Waymo operates Robotaxis in multiple major cities, including Phoenix, San Francisco, San Jose, Miami, and Los Angeles. Waymo has accumulated nearly 900 million kilometers of unmanned driving data and 32 billion kilometers of simulation data, providing a robust foundation for safety and scalability. Other players like Uber and Nissan are also accelerating their autonomous service rollouts. Hyundai Motor, a major South Korean automaker, is preparing for its Robotaxi debut but faces delays. Its joint venture Motional—established in 2020 with US autonomous driving startup Aptiv—has postponed commercialization to beyond 2026, effectively shelving initial launch timelines. To regain momentum, Motional appointed Laura Major as CEO, signaling leadership changes and plans to deepen collaborations with US and Chinese partners.
Hyundai is conducting early road tests of its Robotaxi service in the US by integrating Waymo’s 'Waymo Driver' technology into its IONIQ 5 electric vehicles, with trials expected to begin by the end of 2025. For the Chinese market, Hyundai’s electric car 'Electrio' incorporates software from Haomo, a Chinese autonomous driving company, demonstrating a dual-market strategy.
Industry experts emphasize that South Korea’s future mobility transition demands more than just technological prowess. Comprehensive and sustained support is essential, spanning research and development, infrastructure investment, technology standardization, workforce training, market expansion, and regulatory reform. Small and medium-sized parts suppliers face existential risks due to the costs and uncertainties of this transition, underscoring the need for cooperative frameworks between large automakers and suppliers, alongside strategic government intervention.
Global consultants like PwC forecast the autonomous Robotaxi and mobility service market could reach up to 450 billion euros (approximately 713 trillion Korean won) by 2035. This immense economic potential has sparked intense competition among tech giants and automakers worldwide. As Volkswagen prepares to roll out its Robotaxi fleet next year and Tesla tests its limited service in Austin, the race is on. Yet, South Korea’s cautious regulatory environment and fragmented policy approach could hinder its ability to keep pace.
In this rapidly evolving landscape, the stakes are high. Autonomous vehicles promise to revolutionize urban mobility, reduce accidents, and reshape industries. But realizing this vision requires not only cutting-edge technology but also agile governance, robust data ecosystems, and collaborative industry-government partnerships. South Korea’s journey toward fully autonomous Robotaxi services is just beginning—and the coming years will be critical in determining whether it can join the global leaders or fall behind in this transformative race.
