Toyota (TM) and autonomous driving startup Pony.ai announced plans to invest more than 1 billion yuan ($140 million) to produce robotaxis in China. The partnership is a joint venture with China’s state-owned Guangzhou Automobile Group, GAC-Toyota, and Pony.ai.

Toyota has invested millions in Pony.ai since its partnership in 2019 to develop self-driving cars. Pony.ai touts that it is the first and only autonomous vehicle company to receive a city-level permit to test driverless vehicles in Shenzhen and a permit for driverless robotaxis in Guangzhou. It is one of only two companies to receive the same permit for Beijing.