CHINA DRAGON SECURITIES·2025-05-19 13:51Investment 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 a 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 reported cost reduction of 60%-70% for the seventh-generation Robotaxi from Xiaoma Zhixing [17][5]. Industry Dynamics - Notable industry news includes BYD establishing its European headquarters in Hungary, which is expected to create thousands of jobs and focus on smart driving technology and next-generation vehicle electrification [16]. - GAC Group announced plans to set up a research and development center in Brazil, indicating a push for localized production [34]. - The automotive sector saw a 2.40% increase in the Shenwan Automotive Index from May 12 to May 16, outperforming the CSI 300 Index by 1.29 percentage points [42][48]. Data Tracking - In April 2025, retail sales of passenger vehicles reached 1.755 million units, a year-on-year increase of 14.62%, while new energy vehicle retail sales reached 905,000 units, up 33.67% year-on-year [51][61]. - The penetration rate of new energy vehicles reached 51.6% in April 2025, reflecting a significant increase in market share [61][70]. - The report notes that the inventory level of automotive dealers in April 2025 was at a reasonable range, with a comprehensive inventory coefficient of 1.41, indicating a decrease compared to the previous year [74].