"Smart Driving Equality" is really coming!

On Friday, BYD's A-shares rose over 4%, while on Thursday's closing, it suddenly hit the daily limit, with a market value increase of over 80 billion yuan.

In terms of news, BYD will hold an intelligent strategy launch conference on February 10, heavily introducing the "God's Eye" advanced intelligent driving system. Is "intelligent driving equality" really coming?

Zhongshan Securities' Yan Fan pointed out in Thursday's report that the automotive industry is entering the second half of intelligence, and 2025 is expected to welcome the era of affordable intelligent driving:

Intelligentization is gradually becoming the key to competition in the automotive industry. Analogous to the rapid development of smartphones starting in 2010, we believe that advanced intelligent driving is expected to enter a period of rapid development in 2025. With the maturity of software and hardware algorithms, cost reduction of hardware solutions, increased consumer awareness, and intensified competition among car manufacturers, it is expected that advanced intelligent driving will rapidly popularize among domestic models priced between 100,000 to 200,000 yuan in the next two years.

Zhongshan Securities further pointed out that in the next two years, car manufacturers like BYD will accelerate the penetration of NOA functions into mid-to-low-end models, and advanced intelligent driving will quickly popularize in the 100,000 to 200,000 yuan market:

By 2024, domestic high-speed NOA technology will be basically mature, while urban NOA will become a new competitive high ground for leading enterprises, with some car manufacturers having completed nationwide city openings. With continuous upgrades of software algorithms enhancing the intelligent driving experience, and the ongoing cost reduction of core components like lidar and the implementation of lightweight sensing solutions,

For example: BYD's self-developed "God's Eye" advanced intelligent driving system, while collaborating with Huawei's QianKun intelligent driving and investing in ZhuoYu Technology to strengthen its competitive edge in intelligent driving technology, will hold an intelligent strategy launch conference in February, and it is expected that in the next two years, advanced intelligent driving will be popularized in several models under 200,000 yuan, such as Ocean and Dynasty.

Huawei's HarmonyOS intelligent driving system is being upgraded to the end-to-end ADS3.0 across the entire series, and the cooperation scope of intelligent vehicle solutions is continuously expanding to brands like Avita, FAW Audi, GAC, SAIC, Geely, BYD, and Voyah, which is expected to further enhance Huawei's market share in intelligent driving;

The Xiaomi SU7 is priced at 215,900 to 299,900 yuan, with advanced intelligent driving accounting for about 70%. It is expected to launch more cost-effective models in the future, with the HAD super intelligent driving set to launch in November, fully integrating with end-to-end large models, aiming for production vehicles to park at parking spaces by 2025;

XPeng's technology cost reduction is gradually being realized, launching a new generation of XPeng AI Eagle Eye vision solution and MONAM03, as well as the XPeng P7+ model, pushing advanced intelligent driving down to the 100,000 to 200,000 yuan market.

Technology-driven leaders with core technologies and ecological advantages will ultimately prevail, and the domestic industrial chain will significantly benefit:

Considering factors such as the rhythm of software and hardware innovation, the penetration rate of intelligentization, important new products, and network infrastructure, we believe that 2025-2030 will be a period of rapid development for advanced intelligent driving, comparable to the rapid development of smartphones from 2010 to 2016. We believe that during this period, advanced intelligent driving represented by urban NOA will rapidly penetrate, while competition in the intelligent vehicle market will intensify, similar to smartphones, and the concentration of the automotive industry will further increase. We believe that technology companies with core technologies and ecological advantages will be the most competitive, and the domestic intelligent vehicle industrial chain will enjoy better policies With advantages in industrial chain support, costs, and other factors, a batch of internationally competitive enterprises is expected to emerge.

The intelligence of automobiles drives the increase in the value of the automotive industry chain, and the domestic industry chain will benefit significantly. In the chip segment, under the trend of intelligence, the demand for computing power and overall performance of intelligent driving/cockpit chips is increasing, and there is a broad space for domestic substitution.