Analysis of Cost Control Advantages of Apollo Go Autonomous Driving

Based on the collected data, I will conduct a professional analysis of the cost control advantages and sustainability of Apollo Go’s autonomous driving.

The procurement price of Apollo Go’s 6th-generation autonomous vehicle, Yichi 06, is only

, a decrease compared to the previous generation’s overall vehicle cost [1][2]. This cost advantage stems from China’s well-developed electric vehicle supply chain system, giving Baidu a cost edge over U.S. competitors like Waymo under Alphabet [3].

According to research data from Huaxin Securities, Apollo Go’s

, with the following specific components [2]:

• Vehicle cost depreciation: 112 yuan/day
• Energy replenishment cost: 113.75 yuan/day
• Operating cost: 61 yuan/day
• Maintenance and component replacement: 10.61 yuan/day
• Insurance costs: 11 yuan/day

The

, with an average order value of 24.5 yuan and about 17 orders per day. Based on this, the , with a gross profit margin of about 26% [2].

Apollo Go plans to complete the deployment of

. As the number of deployed vehicles increases, the operating cost per vehicle will decrease significantly. Baidu has built the world’s largest autonomous vehicle automatic operation network, realizing full-life-cycle automation of autonomous vehicle services (automatic wake-up, automatic dispatch, automatic battery swapping, automatic cleaning, etc.) [1].

• The cost of the 7th-generation model is expected to further decrease
• Baidu Apollo ADFM large model improves autonomous driving efficiency
• The efficiency of the human-vehicle cabin continues to improve, and service costs are expected to decrease by 80% [2]

On June 30, 2024, Beijing issued the “Beijing Autonomous Driving Vehicle Regulations (Draft for Comments)”, which for the first time provides comprehensive and systematic support for the development of autonomous driving [1]. Since June 2022, Wuhan has gradually opened test roads and issued test licenses, providing a favorable operating environment for Apollo Go.

Apollo Go is the

, having a presence in multiple cities including Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Wuhan, Chengdu, Changsha, Hefei, Yangquan, and Wuzhen [2]. It ranks first in China in terms of the number of autonomous driving licenses, technical patents, and autonomous driving mileage, with cumulative orders exceeding 17 million, ranking first globally.

Autonomous driving involves public safety, so there is a high possibility of stricter policy supervision. Attitudes towards autonomous driving may vary across cities, and nationwide promotion faces policy coordination challenges.

Autonomous driving needs to handle massive urban road scenarios, and continuous improvement of technical safety requires significant R&D investment. Any safety accident may affect public trust and regulatory policies.

• Traditional ride-hailing platforms may enter the autonomous driving field
• Tesla announced that it will release its Robotaxi on August 8, 2024 [1]
• Competitors such as Pony.ai and WeRide continue to make efforts

Although it is expected to achieve break-even in Wuhan by the end of 2024 and fully enter the profit period in 2025, this forecast is based on the continuous improvement of existing operational efficiency. Whether profitability can be maintained during large-scale expansion still needs to be verified.

Apollo Go has a high probability of achieving profitability in Wuhan, and its cost advantage is expected to continue. The main supporting factors include: release of scale effects, improvement of operational efficiency, and reduction of subsidies.

Whether the cost advantage can be maintained depends on:

• Cost control of the 7th-generation and subsequent models
• Operational efficiency of new city expansion
• Changes in the competitive landscape

With technological maturity and scale expansion, unit costs are expected to continue to decline. However, attention needs to be paid to policy evolution, changes in technical routes, and the competitive market landscape.

Overall, Apollo Go has a high probability of maintaining its cost control advantage over the next 2-3 years, thanks to Baidu Apollo’s technical accumulation, China’s well-developed supply chain advantages, and first-mover advantages. However, the long-term sustainability requires continuous attention to the speed of technological iteration, policy environment, and changes in the competitive landscape.

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[1] Huaxin Securities - Apollo Go Robotaxi Orders Surge, Expected to Gradually Achieve Regional Profitability (https://pdf.dfcfw.com/pdf/H3_AP202407121637816669_1.pdf)

[2] Huaxin Securities - Outlook on the Business Model of Robotaxi (https://pdf.dfcfw.com/pdf/H3_AP202409201639951334_1.pdf)

[3] Yahoo Finance - Baidu’s Apollo Go Robotaxi Seeks to Enter Australia (https://hk.finance.yahoo.com/news/百度旗下萝卜快跑无人驾驶出租车寻求进军澳大利亚和-011358303.html)