On the evening of February 10, BYD, the prominent Chinese electric vehicle manufacturer, hosted an intelligent driving strategy launch event that unveiled its ambitious plan to democratize advanced driving technologyThe star of the event was the “Eye of Heaven” advanced intelligent driving system that aims to be integrated across all of BYD's vehicle modelsAn impressive lineup of 21 vehicles is set to hit the market, catering to a wide range of consumers with prices starting from 70,000 Yuan up to 200,000 YuanNotably, models priced below 100,000 Yuan, such as the Dolphin and Seal, are also slated to feature this advanced driving technology, marking a significant shift towards making such systems more accessible.

Wang Chuanfu, the founder and chairman of BYD, proclaimed that the year 2025 will usher in a new era of universal intelligent drivingIn his view, the next two to three years will be pivotal as intelligent driving systems become essential features in vehicles, transforming the image of Chinese automobiles on the global stageThis assertion reflects BYD’s commitment to enhancing vehicle safety and convenience through technological innovation.

The “Eye of Heaven” system comprises three distinct versions tailored to different market segmentsThe first, known as Eye of Heaven A (DiPilot 600), is geared towards BEYOND, BYD's luxury brandEyed for providing an unparalleled high-end driving experience, this version incorporates cutting-edge technologies that entice a discerning customer baseIn contrast, the Eye of Heaven B (DiPilot 300) strikes a balance between performance and quality for both Tengshi and some BYD models, showcasing the versatility of intelligent driving systemsLastly, the Eye of Heaven C (DiPilot 100) implements a tri-camera setup combined with millimeter-wave radar, targeting more economically priced models while offering essential features like high-speed navigation assistance and automated parking solutions.

The rollout of BYD's “intelligent driving equity” strategy is poised to invigorate China's domestic intelligent driving sector

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It promises to enable cutting-edge driving capabilities to percolate down to mid-range and entry-level models, thereby fostering growth opportunities across related industriesMany experts predict this new direction could become the principal theme of automotive investment by 2025.

As the technology infrastructure develops, various industry segments stand to benefit significantlyThe core technologies driving intelligent driving solutions encompass sensors, chips, and algorithmsBYD's comprehensive strategy will create a ripple effect spanning the entire supply chain—from upstream hardware components like sensors and chips down to software solutions and service applications such as charging stations and data analyticsFor example, the perception layer requires advanced Lidar systems, cameras, and radar sensors, while the decision-making layer is reliant on onboard chips, software algorithms, and system integrationsThe execution layer consists of sophisticated Advanced Driver Assistance Systems (ADAS), precision braking systems, and thermal management technologiesThis multilayered approach ensures that advancements in one area will invariably bolster progress in others.

By 2025, BYD plans to significantly elevate its intelligent driving offerings, particularly enhancing models equipped with DP100 and higher systemsWhen comparing vehicles manufactured in 2024 and earlier, there is an anticipated dramatic increase in the number of sensors used per vehicle: the number of cameras is expected to swell from one to five, growing to twelve; likewise, the number of millimeter-wave and ultrasonic radars will increase significantly, thereby amplifying vehicle intelligenceThis escalation in sensor use will yield substantial gifts to core segments of the supply chain, including domain controllers, intelligent driving chips, camera modules, and Lidar infrastructure.

Furthermore, the “intelligent driving equity” initiative is rapidly gaining traction

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With BYD's ability to mass-produce tech-driven features and control costs effectively, the company is democratizing sophisticated driving functions traditionally reserved for luxury vehiclesBy making these technologies more widely available, there is a collective movement towards a more equitable distribution of advanced automotive innovations.

Other manufacturers are also ramping up their efforts in the intelligent driving arenaFor instance, Changan Auto announced at its recent strategy launch on February 9 that it would begin equipping vehicles in the 100,000 Yuan segment with Lidar technologyChangan aims for a significant leap in its AEB (autonomous emergency braking) capabilities, achieving speeds up to 135 km/h while progressively working towards level 3 automation by 2026 and level 4 by 2028. Concurrently, XPeng Motors plans to release a genuine level 3 autonomous driving system by the end of 2025, enhancing the reliability and safety of user experiences with intelligent driving.

Competing brand Leap Motor is also joining the ranks, having recently announced that its B10 model will be the first in the 150,000 Yuan bracket to feature city-wide intelligent driving capabilities with Lidar integrationCollectively, these advancements signal a substantial shift within the industry toward enhancing consumer accessibility to intelligent driving experiences.

The data also reveals that the overall automotive landscape is evolvingAccording to statistics from advanced automobile research and industry analysis reports, from January to November 2024, L2+ models sold approximately 2.281 million units, yielding a penetration rate of 11.3%. Since April 2024, the monthly rate has consistently exceeded 10%, suggesting that the industry is entering an accelerated phase of growthWith ongoing policies for vehicle replacements supporting market dynamics throughout 2025, the drive for "intelligent driving equity" could mark a critical turning point in the journey towards fully integrated intelligent vehicle solutions.

For investors and industry stakeholders, the emergence of specific theme-based exchange-traded funds (ETFs) related to smart vehicles highlights significant market opportunities

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