The evening of February 10 marked a significant milestone in the automotive industry, particularly for the electric vehicle space in China, as BYD officially unveiled its advanced autonomous driving system, known as "Tianshen Eye." This advanced driving technology comes in three distinct versions, with the tri-laser configuration primarily installed in the premium Yangwang modelsChairman Wang Chuanfu emphasized that this high-level autonomous system would enable truly hands-free driving on highways, promising a new era in vehicular technology.
What sets Tianshen Eye apart is its expected integration across an impressive lineup of BYD vehiclesWith 21 different models projected to include this advanced driver assistance system (ADAS), the technology will be standard for vehicles priced at 100,000 RMB (approximately 15,000 USD) and above, while most cars under that price point will also likely feature itThis move reflects BYD's ambition to make advanced technology accessible to a wider audience, thereby elevating the standards of safety and convenience in the automotive market.
Current market dynamics suggest that the supply chain for advanced driving technologies is still developingWang noted that, should there be a sufficient supply, even more affordable models could be equipped with the Tianshen Eye system, signaling BYD's commitment to democratizing smart drivingHe projected that within the next two to three years, advanced autonomous driving could become just as essential as seat belts, transforming consumer expectations about vehicle safety.
The financial commitment to this technological leap is profoundLast November, Wang announced an aggressive investment plan amounting to 100 billion RMB (approximately 14 billion USD) over the next few years to foster advancements in AI and its integration with automotive technologiesBy the end of that year, BYD had submitted multiple new and upgraded models for approval, highlighting its proactive approach to remain at the forefront of automotive innovation
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One such model, the Dolphin, is poised to enhance smart features such as front and rear radars, cameras, and advanced sensor systems, thereby enriching the driver experience.
Market analysts have recognized BYD's leadership in this evolving landscape as it initiates rapid advancements in smart driving technologiesThis initiative will likely encourage a broader adoption of autonomous features in more affordable vehicles, thereby setting new benchmarks for the entire industry.
A key component of BYD's strategy involves the introduction of DeepSeek technology, which is anticipated to significantly lower costs associated with smart driving systemsAs articulated by Wang during the launch, the approach to smart driving is shifting from a rule-driven model to one propelled by large data models, where the quality of these models heavily depends on the data providedThis marks a substantial evolution in the underlying logic of smart driving.
Yang Dongsheng, Senior Vice President of BYD Group and head of the New Auto Technology Research Institute, elaborated on the company's ambitious cadence of innovationThe smart driving models undergo iterations every seven days, with a staggering goal of accumulating 72 million kilometers of training data daily by 2024 and aiming for 150 million kilometers by the end of 2025. This rapid development cycle underscores the company's commitment to staying ahead in the rapidly changing landscape of automotive technology.
Perhaps even more intriguing was Yang's announcement that BYD's vehicle intelligence architecture, dubbed "Xuanji," would integrate with the DeepSeek R1 large modelThis integration is expected to rapidly advance both onboard and cloud-based AI capabilities, which could significantly improve the functionalities of autonomous vehiclesThe potential of DeepSeek to reduce computational requirements through algorithms and model optimizations also could lower the costs associated with advanced driver systems, making them more accessible within the market.
The vision for 2025 appears ambitious but achievable, with multiple automotive companies now advocating for what they term "intelligent driving equality." For instance, Changan Automobile has announced a comprehensive plan dubbed "Beidou Tian Shu 2.0," which aims to cease the development of non-intelligent new products by 2025. They project the release of 35 new smart automobile models over the next three years, aiming for full L3 level automatic driving by 2026 and advancing to L4 capabilities by 2028.
Changan's Chairman, Zhu Huarong, has revealed intentions to introduce laser radar in vehicles priced around 100,000 RMB, forming part of a broader strategy to enhance the distribution of intelligent driving features within the market
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Similarly, Xiaopeng Motors' Chairman and CEO, He Xiaopeng, anticipates the launch of an upgraded vehicle capable of L3 autonomy by mid-2025, further supporting the push towards more intelligent and autonomous vehicles.
In the segment of China’s new energy vehicles, mid- to low-end models constitute a significant portion of salesAccording to data from the China Association of Automobile Manufacturers, vehicles priced between 50,000-150,000 RMB are projected to dominate the market, accounting for 19.9%, 35.7%, and 10.9% of sales in the various price brackets up to 200,000 RMB by December 2024.
However, disparities exist concerning technological features in these vehicles, as premium models tend to be outfitted with advanced smart configurations while lower-tier models lag behindThe efforts to integrate smart driving in more affordable segments indicate a shift toward inclusivity in automotive technology, which is expected to accelerate the momentum towards tech-enhanced driving experiences across all tiers of the market.
Market research conducted by Zheshang Securities indicates that with the continuous penetration of intelligent driving configurations into lower price brackets, smart driving equality is likely to gain strength in 2025. The projected sales volume for intelligent driving vehicles priced between 100,000 to 200,000 RMB could surge from 360,000 units in 2024 to an anticipated 4.1 million units by 2027, thereby achieving a compound annual growth rate of 125%. This showcases the burgeoning demand and potential market growth for intelligent driving technologies.
Stakeholders are advised to keep a watchful eye on several key players in this evolving landscapeIn terms of complete vehicle development, attention should be given to companies like BYD, Geely, and Xiaopeng MotorsKey technologies such as laser radar highlight innovators like Suoteng Juchuang and Hesai Technology, while companies specializing in onboard chips should also be monitored, with names like Horizon Robotics and Heishima Intelligence leading the charge
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