1、Barclays Capital Inc.and/or one of its affiliates does and seeks to do business with companiescovered in its research reports.As a result,investors should be aware that the firm may have aconflict of interest that could affect the objectivity of this report.Investors should consider thisreport as on

2、ly a single factor in making their investment decision.Please see analyst certifications and important disclosures beginning on page 18.China TechnologyThe State of Robotaxi in ChinaWe believe there are currently 2k robotaxis on the roads inChinese cities and we are expecting 300-500k robotaxis to b

3、edeployed by 2030.China has over 500 mn consumers who use ride-hailing services,and the current ride-hailingmarket in China is about 16bn trips a year,growing 10%yoy.The overall on-demandtransportation market is split 50/50 between ride hailing and taxi.Robotaxi is competing inChinas higher-tier-cit

4、y on-demand transport market,which includes 4.5-5mn cars,and weexpect there will be 300-500k robotaxis deployed in China by 2030(5-10%penetration).The unit economics in Chinas robotaxi may already be close to or at break-even today,excluding all the up-front development costs.We estimate todays cost

5、 to build a robotaxiin China to be about$35-40k,broadly in line with what Elon Musk has been guiding for thecost of Teslas Cybercab.Typically,the operating cost of a robotaxi ride is spread across vehiclecost depreciation(around 50%of the total),operating center support staff labor cost(20%ofthe tot

6、al),and other operating expenses including charging,insurance,license,etc.(30%of thetotal).But we expect the build cost for robotaxis in China to fall by over 30%by 2030 asproduction volume ramps up to drive the BOM of a robotaxi down to todays EV cost levels.Prices for many base model EVs today,whi