CHINA DRAGON SECURITIES·2025-12-29 09:12Investment Rating - The report maintains an investment rating of "Recommended" for the automotive industry [2]. Core Insights - Baidu's collaboration with Uber and Lyft to launch a Robotaxi pilot project in the UK in 2026 is a significant development, indicating a global expansion strategy for domestic Robotaxi operators [3][4]. - The report highlights that leading domestic Robotaxi operators are achieving positive unit economics (UE) per vehicle, driven by fleet expansion and reduced vehicle costs, with expectations for rapid growth in fleet size in 2026 [4]. - The report emphasizes the potential for improved operational performance and market expansion for Robotaxi operators, particularly in regions where traditional ride-hailing costs are significantly higher than in China [4]. Summary by Sections Industry Overview - The report discusses the strategic importance of partnerships with international ride-hailing platforms for domestic Robotaxi operators, facilitating their global market expansion [4]. - It notes that the first L3 level vehicles have received approval for mass production, marking a significant step towards the widespread application of autonomous driving technology [2]. Market Dynamics - The report indicates that leading players in the Robotaxi sector are achieving profitability on a per-vehicle basis, with companies like Luobo Kuaipao and Xiaoma Zhixing reporting positive unit economics in specific cities [4]. - The cost of autonomous driving kits has decreased significantly, with Xiaoma Zhixing reporting a reduction of over 70% compared to previous generations, further supporting profitability [4]. Investment Recommendations - The report suggests focusing on key companies such as XPeng Motors, Desay SV, Huayang Group, Bertel, Junsheng Electronics, Xiaoma Zhixing, Horizon Robotics, Nexperia, and Top Group, as they are expected to perform well in the growing Robotaxi market [4][6].