For our robotaxi business, Apollo Go, we also chose to grow Apollo Go at well measured pace. We have very comprehensive financial models to optimize and forecast the cost and expenses in this business, especially the labor costs and the very — hardware costs. We have been very careful to measure and estimate the cash flow for this business. Our strategy is to strengthen our leading position in robotaxi all over the world, acquire sizable market shares in the ride-hailing sector, especially in the key cities in China and in the future, and ultimately try to generate more profits in these key areas. We are not expanding our operations without thinking about building a sustainable and profitable business models for Apollo Go. For auto solutions, Zhenyu Li mentioned just now, we already have a projected cumulative sales of around RMB11.4 billion, while revenue contribution is still very small at this stage, and we expect it to see more revenue keying from the second half of next year or maybe early in 2024, as small cars with our solutions can become available in the market.
And once the meaningful revenue kicks in, this business should start to generate profit. I would like to also make it clear in the RMB11.4 billion is our estimate including the contract side and nomination letters we received from OEMs. In auto industry, our nomination letter means a supplier is affected for certain projects, and then the OEMs will sign up contracts with us first. Our estimate is based on our assumptions of the timing of launch, the pricing, the future volumes. I hope this gives you a better understanding of how we have made these calculations. Looking forward, we will continue to be very disciplined with the cost and expenses. And at the same time, we’ll continue to invest in the AI Cloud and intelligent driving for our long-term growth, despite of the challenging environment in the short term.
And in the future, we believe our mobile ecosystem will continue to generate different profits and cash flow to support our investments in the new AI business. And we’ll also continue to work very hard to narrow our loss in AI Cloud. Thank you so much for your question.
Operator: The next question comes from Gary Yu with Morgan Stanley. Please go ahead.
Gary Yu: Hi. Thank you for the opportunity and congrats on the expanded partner network and growing backlogs for ADS business. I have a question on your auto solutions. Just wondering, when should we expect meaningful revenue to start gains? And how do you differentiate the Apollo’s auto solution from your peers? And could you help us understand the underlying market space for Baidu Apollo’s auto solutions? And a related question to that is, have you noticed a significant change in the attitude of the OEMs towards self-developing for intelligent driving solutions? Thank you.
Robin Li: Hi, Gary, this is Robin. We’ve seen huge opportunities in the auto solutions market. In the first 10 months of this year, EV sales increased by more than 100% in China. We’re now the largest EV market in the world, accounting for more than half of the global EV sales. A clear trend for the auto industry is vehicle intelligence. Baidu is benefiting from this trend. Our years of investments in autonomous driving have begun to bear fruit. Baidu Apollo’s auto solutions derived from our core technologies. A lot of AI models we build for robotaxi can be used for ASD. Another point to note is that as the market leader, we have been investing in autonomous driving for about 10 years. And thanks to this investment, we not only have completed tens of millions of testing miles on the public roads, but also accumulated a very valuable experience by running the largest robotaxi fleet on urban roads on a daily basis.
