CHINA DRAGON SECURITIES·2025-05-19 06:43Investment Rating - The report maintains an investment rating of "Recommended" for the automotive industry [2]. Core Viewpoints - The focus is on the mass production and commercialization pace of Robotaxi, with significant advancements expected in 2025 due to cost reductions in smart driving hardware, ongoing R&D, and supportive policies [5][15]. - The report highlights the strategic partnership between Xiangdao Mobility and Momenta to launch the world's first pre-installed mass-produced Robotaxi fleet, aiming for hundreds of vehicles by 2026 [15][25]. - The automotive sector is expected to benefit from the growing penetration of L2+ assisted driving technologies, with a notable cost reduction of 60%-70% for the seventh generation Robotaxi from Xiaoma Zhixing [17][5]. Industry Dynamics - Key industry news includes BYD establishing its European headquarters in Hungary, which is expected to create thousands of jobs and focus on smart driving and electric vehicle technologies [16]. - GAC Group announced plans to set up a research and development center in Brazil [16]. - The automotive sector saw a performance increase, with the automotive index outperforming the CSI 300 index by 1.29 percentage points during the week of May 12 to May 16, 2025 [5][42]. Data Tracking - In April 2025, retail sales of passenger vehicles reached 1.755 million units, a year-on-year increase of 14.62% [51]. - The retail sales of new energy passenger vehicles reached 905,000 units in April, with a penetration rate of 51.6%, reflecting a year-on-year increase of 33.67% [61]. - The report notes that the penetration rate of L2.5 and above smart driving vehicles reached 17.10% in February 2025, marking a historical high [73].