Consumer acceptance of autonomous driving has clearly increased, and the domestic smart driving industry has reached an inflection point on the demand side.
The Zhitong Finance app learned that Dongwu Securities released a research report saying that Huawei continues to promote the upgrading of autonomous driving solutions. In April 2023, the smart driving version of the HUAWEI Xinjie M5 was first equipped with the ADS2.0 advanced intelligent driving system. Since the launch of the new Enquire M7, the smart driving experience combined with the smart cockpit upgrade has been highly recognized by customers, driving the smart car model to become a popular model. The selection rate of the Smart Driving Plan for the models ordered from September 17 to October 7 increased to 60%-70%. Consumer acceptance of autonomous driving increased markedly, driving other car companies to increase their smart driving plan selection rate. Consumer acceptance of autonomous driving has clearly increased, and the domestic smart driving industry has reached an inflection point on the demand side.
The views of Soochow Securities are as follows:
With the smart driving and cockpit experience of the new Huawei car, the domestic intelligent driving industry has ushered in an inflection point in demand:
Huawei continues to promote the upgrading of autonomous driving solutions. In April 2023, the smart driving version of the Huawei Wenjie M5 was first equipped with the ADS2.0 advanced intelligent driving system. Since the launch of the new Wenjie M7, the smart driving experience superimposed smart cockpit upgrade has been highly recognized by customers, driving the Wenjie M7 to become a popular model. The smart driving program selection rate among models ordered from September 17 to October 7 has increased to 60%-70%, and consumer acceptance of autonomous driving has increased markedly, driving other car companies to increase their smart driving program selection rate. Consumer acceptance of autonomous driving has clearly increased, and the domestic smart driving industry has reached an inflection point on the demand side.
The giant's smart driving plan to enter the market triggers the “catfish” effect, and car companies race against the city NOA:
In September 2023, Huawei proposed a plan to achieve the launch of the NCA for intelligent urban driving throughout the country in December, Tesla's FSD plan to accelerate entry into the Chinese market, the accelerated implementation of the smart driving plans of the two giants triggered the “catfish” effect, and major car companies also competed to accelerate the implementation of high-end smart driving solutions: Ideal Auto plans to cover 100 cities across the country by December, while Zhiji Auto plans to cover 100+ cities across the country in 2024... Compared with high-speed NOA traffic road complexity, the level of software and hardware requirements for autonomous driving is increased exponentially. The popularity of NOA in cities means that cars can drive autonomously in more complex environments, marking a true gradual shift in intelligent driving from advanced assisted driving to autonomous driving.
“Light map, focus on perception” urban NOA accelerates implementation, and autonomous driving hardware welcomes opportunities:
Urban NOA is about to enter a large-scale mass production period. Due to issues such as the coverage, cost, and frequency of updates of the high-precision map itself, the “light map, heavy perception” autonomous driving scheme has become the mainstream choice of many car companies. Driven by the “heavy sensing” technology route, sensors such as lidar, high-resolution car cameras, and 4D millimeter wave radar are quickly used in vehicles:
1) Vehicle camera volume and price are rising rapidly: The autonomous driving upgrade is driving the gradual increase in vehicle camera load capacity. At the same time, in order to meet the demand for higher levels of autonomous driving, the increase in vehicle camera pixels is driving the value of in-vehicle cameras.
2) Accelerated entry of lidar: Pure visual perception solutions still present risks in special scenarios, and require extremely high computing power and data training. Under the trend of increasing autonomous driving levels, lidar has become the mainstream choice for advanced intelligent driving solutions due to its advantages of not relying on algorithm training, low computing power requirements, and more sensitive obstacle detection. Currently, along with the gradual large-scale mass production of models with advanced intelligent driving solutions, there are opportunities for mass production.
3) Accelerated applications of connectors, HUDs and other related hardware: Automotive autonomous driving sensor data relies on high-frequency high-speed connectors to achieve data transmission. Continued upgrading of advanced autonomous driving and mass production on vehicles drive a continuous increase in demand for connectors. HUD has significantly improved the autonomous driving experience, and market demand is expected to grow steadily.
Investment suggestions: It is recommended to focus on perceptual layer hardware lidar industry chain companies Crystal Optoelectronics (002273.SZ), Lante Optics (688127.SH), Phoenix Optics (600071.SH), Yongxin Optics (), Yongxin Optics (), Ju Guang Technology (), Changguang Huaxin (), Gaowei Electronics (01415), vehicle camera industry chain company Shunyu Optics (02382), Lianchuang Electronics (002036.SZ), and Vail shares (002036.SZ) 603297.SH 688167.SH 688048.SH 603501.SH), Stevie (688213.SH), Geke Micro (), Connector Company Electric Connection Technology (300679.SZ), Yonggui Electric (300351.SZ), Yihua Co., Ltd. (002897.SZ), and Laimu Co., Ltd. (). 688728.SH 603633.SH
Risk warning: domestic car companies' smart driving solutions are not as fast as expected, intelligent penetration rate falls short of expectations, and customer expansion falls short of expectations