1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Investment Research at:https:/ Listen

2、 to our insightsFind out moreHSBCGlobal InvestmentResearchPodcasts The pace of commercialisation of driverless taxis is accelerating in China Technology,policy support,and improving returns on operating the fleet to support expansion in 2H25-2026e Increasing scale is the key;we expect Chinas robotax

3、i fleet to grow 10 x over 2H25-26e Robotaxis on a roll.Driverless taxi services are now available in selected geofenced areas in major cities,reflecting the growing maturity of the technology and the accelerating pace of commercialisation.In the past week,we hosted test rides and an investor tour wi

4、th two China robotaxi companies,Pony and WeRide.A click on an app brought the taxi to the pick-up point for a seamless ride to the destination,with the car navigating the busy traffic with ease and changing lanes and stopping at traffic lights without a hitch,with no driver or monitor on board.Prici

5、ng models vary at this early stage but as availability is limited,heavy discounts are being offered to attract first-time users.Over time,we think robotaxis will aim to offer a 10-20%discount vs taxi/ride-hailing services.Inflection point.The technology supporting robotaxis is working smoothly in ge

6、ofenced areas in major cities like Shenzhen,Guangzhou,Beijing,and Shanghai where some pilot schemes offer 7x24 driverless services.The average cost of a robotaxi is now around RMB300,000(USD40,000)thanks to cheaper sensors,with vehicles now equipped with more processing power(edge and cloud),better