Tesla Rival Baidu Expands Apollo Go Robotaxi To Europe, Sets Sights On Turkey Amid Rising Competition: Report

In a major move towards international expansion, Baidu Inc. BIDU is reportedly preparing to test its autonomous ride-hailing service in Europe.

What Happened: The Beijing-based internet titan has been negotiating with PostAuto, a subsidiary of Swiss Post, to bring its Apollo Go robotaxi service to Switzerland. Baidu plans to establish a local entity in Switzerland in the coming months and begin technology testing by year-end, according to a recent Wall Street Journal report.

Baidu also plans to roll out Apollo Go in Turkey, broadening its competitive reach overseas as domestic competition grows. Chinese companies, including Baidu, are increasingly targeting foreign markets as the U.S. market becomes more challenging due to heightened scrutiny from Washington.

Competition is also growing in other markets such as the Middle East, Japan, Singapore and now Europe, as Chinese tech companies vie to establish their presence.

Why It Matters: Baidu CEO Robin Li has previously told investors that 2025 will be a key year for the company's expansion. In a significant move in February, Baidu and EV battery giant CATL agreed to collaborate to explore the development of "competitive" driverless vehicles and innovative business models.

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Baidu’s plan to expand its self-driving fleet internationally reflects similar moves by several Chinese counterparts, such as WeRide, Pony.ai and Momenta, who collaborated with Uber UBER earlier this year to deploy their robotaxis within Uber's fleets in Europe and the Middle East. Meanwhile, Tesla Inc.’s TSLA position continues to weaken in Europe.

Goldman Sachs analysts note that leading driverless car companies like Baidu, WeRide and Pony.ai have a competitive edge thanks to high technological entry barriers and their advanced algorithm development and extensive data crucial for large-scale deployment.

Nevertheless, some analysts believe robotaxi services may face regulatory hurdles in Europe, largely because of safety concerns. "It will take some time for safety trials to convince regulators," Kai Wang, a Morningstar analyst told WSJ.

The shares of Baidu rose 1.55% to close at $92.50 on Wednesday. On a year-to-date basis, the shares climbed 11.85%, as per Benzinga Pro data.