Mei Ri Jing Ji Xin Wen·2025-08-04 14:12Core Viewpoint - The automotive industry is facing a pivotal decision regarding the monetization of advanced driver-assistance systems (ADAS), with some companies advocating for a paid model while others pursue a "free driving equality" strategy [1][2][3]. Group 1: Business Models - Bosch's president in China emphasized that all models must implement paid ADAS features, moving away from free promotion strategies [1]. - Companies like BYD, Geely, and Chery are adopting a "driving equality" strategy, offering advanced ADAS at lower price points, with BYD introducing systems for models priced as low as 100,000 yuan [2]. - Tesla and Huawei maintain a subscription-based pricing model for their ADAS, with Tesla's Enhanced Autopilot priced at 32,000 yuan and a monthly subscription option available [3]. Group 2: Cost Considerations - The decision to charge for ADAS is driven by the high costs associated with communication, data transmission, and the need for continuous software updates and improvements [4][5]. - The human resource costs for developing ADAS are significant, with companies like BYD employing a large team that incurs monthly costs of 1 billion yuan [5]. - Hardware costs for ADAS, including sensors and high-performance chips, are substantial, although they have been decreasing due to advancements in technology [6]. Group 3: Market Dynamics - The competitive landscape is intensifying, with companies potentially engaging in price wars as they navigate the balance between offering free services and charging for advanced features [3][6]. - The overall profitability of the automotive industry is declining, with a reported 11.9% drop in profits despite a 7% increase in revenue and a 14% rise in passenger vehicle sales [6]. - There is a consensus that for the healthy development of ADAS, a balance between cost and user experience must be achieved, alongside a market understanding of the need for service payments [6].