Core Insights - The penetration of Head-Up Display (HUD) in China's passenger car market is rapidly increasing, with a projected growth rate of 22% year-on-year for standard HUDs in the first half of 2025, reaching a penetration rate of 15.5% [1][2] - Augmented Reality Head-Up Display (AR-HUD) is experiencing significant growth, with a year-on-year increase of 45%, and is expected to reach a penetration rate of 6% by 2025 [1][2] Group 1: Market Trends - The standard HUD configuration in China's passenger vehicles is primarily dominated by W-HUD, while AR-HUD is seeing rapid growth, increasing its penetration rate to 28% in the first half of 2025, up by 4 percentage points year-on-year [3] - The market share of domestic vehicles with standard HUDs is the largest at 63%, reflecting a 2 percentage point increase year-on-year, while German and Japanese vehicles account for 21% and 14% respectively [4] Group 2: New Energy Vehicles - In the first half of 2025, the HUD penetration rate in China's new energy passenger vehicles reached 57%, with a total of 1.18 million units, indicating a growing consumer acceptance of HUD technology [5] - The AR-HUD configuration in new energy vehicles accounted for 94% of the total AR-HUD installations, driven by domestic brands and new automotive forces [5] Group 3: Pricing and Market Segmentation - The majority of HUD installations in passenger vehicles priced at or above 300,000 yuan account for 42% of the total, with significant growth in lower price segments as well [6] - The AR-HUD installations in vehicles priced at or above 300,000 yuan represent 39%, showing a 7 percentage point increase year-on-year [6] Group 4: Industry Dynamics - The HUD industry is experiencing rapid growth and expansion, supported by policy incentives, technological advancements, and increasing market demand, with major manufacturers concentrated in eastern coastal regions of China [6]

Core Viewpoint - The automotive Head-Up Display (HUD) market in China is experiencing rapid growth, particularly in the mid-range and high-end segments, with significant increases in both standard and augmented reality (AR) HUD adoption [2][3][4]. Group 1: Market Penetration and Growth - In the first half of 2025, the standard HUD installation rate in Chinese passenger vehicles reached 15.5%, with a year-on-year growth of 22%, while AR-HUD installations grew by 45%, achieving a penetration rate of 4.3% [2]. - The overall HUD penetration rate in the Chinese passenger car market is projected to reach approximately 17% by 2025, with AR-HUD expected to reach a 6% penetration rate [3]. Group 2: HUD Types and Trends - The mainstream type of HUD in the Chinese market remains W-HUD, which accounted for 72% of installations, while AR-HUD's penetration increased to 28%, reflecting a year-on-year increase of 4 percentage points [4]. - The penetration of P-HUD is relatively low at around 0.5%, and C-HUD has nearly exited the market with a penetration rate of less than 0.1% [4]. Group 3: Domestic vs. Foreign Models - In the first half of 2025, 48% of the passenger vehicles in the Chinese market were equipped with HUDs, with domestic models making up 69% of this figure. The domestic models accounted for 63% of the total HUD installations, marking a 2 percentage point increase year-on-year [5]. - German and Japanese brands accounted for 21% and 14% of HUD installations, respectively, with year-on-year changes of -4 percentage points and +3 percentage points [5]. Group 4: New Energy Vehicles - The HUD installation rate in new energy passenger vehicles reached 57% in the first half of 2025, with a total of 118,000 units installed, reflecting a year-on-year increase of 2 percentage points [6]. - New energy vehicles accounted for 94% of the AR-HUD installations in the passenger vehicle segment, driven by domestic brands and new automotive forces [6]. Group 5: Pricing and Market Segmentation - In the first half of 2025, models priced at 300,000 yuan or more accounted for 42% of the total HUD installations, with other price segments (150,000-200,000 yuan and 200,000-250,000 yuan) representing 22% and 20%, respectively [7]. - For AR-HUD, models priced at 300,000 yuan or more made up 39% of installations, with year-on-year increases of 7 percentage points in this segment [7]. Group 6: Industry Dynamics - The majority of domestic HUD manufacturers are concentrated in coastal regions, particularly in Guangdong, Shanghai, Zhejiang, Beijing, and Jiangsu, where the industry chain is becoming increasingly mature [7]. - The HUD industry is in a rapid growth phase, driven by policy support, technological innovation, and market demand, gradually breaking the foreign monopoly [7].