(Yicai) Dec. 25 -- WeRide is poised to enter more key markets in Southeast Asia, Europe, and South America after recently getting licensed in Singapore, according to the chief executive officer of the autonomous driving firm.

“Singapore serves as WeRide’s first step into the SE Asian market,” the Guangzhou-based startup’s Tony Han told Yicai in a recent interview.

Because labor costs are higher in Singapore, WeRide’s operations are expected to achieve a higher gross profit margin per vehicle and the island state's strategic location next door to Malaysia and Indonesia turns it into a gateway to the rapidly developing SE Asian market, he said.

Moreover, Singapore's close ties with the Chinese mainland and its Chinese-speaking community make it an ideal location for WeRide to train its teams for international expansion, the CEO added.

Below are some key excerpts from the interview:

Yicai: Which international markets is WeRide considering for the future? 

Han: We are looking at developed countries with advanced information and transportation infrastructure, such as European nations, Japan, South Korea, and potentially lucrative markets in South America such as Argentina and Brazil. We've already started in the Middle East and are considering North African markets, including Morocco, as it is close to the Middle East.

Yicai: How does WeRide plan to deal with the different market conditions? 

Han: Globalization is narrowing the gap between countries, but differences in regulations and policies still exist. Addressing these involves several steps. 

First, resolving the issue of talent for overseas operations, especially language barriers, is crucial. While English is widely spoken, in countries where French or Arabic are predominant, local talent is essential. In terms of regulatory compliance, it’s imperative to thoroughly understand and strictly adhere to local laws. Where regulations do not yet support autonomous driving, we need to patiently educate the market and communicate with legislators, as we did in Singapore.

Overall, our strategy includes preparing talent for overseas operations, promoting mutual understanding and communication, understanding legal frameworks, and gradually establishing our presence.

Yicai: As a high-tech startup, how does WeRide address financial challenges?

Han: Firstly, companies must have the ability to raise funds independently. The confidence and expectations of the capital market play a significant role. Companies need to continuously break new ground in technology and market expansion to bolster investor confidence. This involves showcasing progress and potential of future profitability. Secondly, achieving self-sufficiency is important. This includes maintaining customer value, positive cash flows, focusing on capital returns, and ensuring profitable growth.

Yicai: How do you view risk, particularly after Cruise, General Motors' robotaxi unit, lost its US license? 

Han: No mode of transportation is 100 percent safe: this is the inherent truth. It’s important to approach autonomous driving safety rationally and statistically. We should compare the accident rates of human-driven vehicles with those of autonomous vehicles. Preliminary data suggest that autonomous vehicles are safer. 

This is a process of acceptance, similar to the transition from horse-drawn vehicles to automobiles. Initially, cars were considered less safe than carriages, but data eventually showed cars to be safer, leading to widespread adoption. We're at a similar turning point with autonomous vehicles. 

I believe that from 2025 to 2028, a wide acceptance will appear that autonomous driving vehicles are safer and they will become more dominant.

Yicai: What are the key factors driving this change? 

Han: There are several factors. First, the cost of hardware for autonomous driving. When hardware costs, depreciated over five years, become cheaper than human drivers, it reaches a tipping point. Additionally, compelling statistical evidence showing that autonomous driving is safer will be crucial. Once the data demonstrate that autonomous driving is economical, safe, and comfortable, we'll see a significant shift from human-driven to self-driving vehicles.

Yicai: What’s your view on mobility and future transportation? And what is WeRide’s role in it? 

Han: I envision a future where autonomous vehicles become increasingly prevalent. In the future, driving might become a skill like horse-riding or calligraphy today -- a hobby rather than a necessity. It can free up time for individuals, and improve people’s lives. 

I see WeRide playing a central role in this future landscape. We aim to provide safe and efficient self-driving technology in collaboration with hardware manufacturers and automakers. Our goal is to create a system that enhances the safety and convenience of autonomous travel.

Editor: Emmi Laine