Core Viewpoint - The recent developments in the autonomous driving sector highlight the struggles of traditional automakers in establishing self-research capabilities, leading to a shift towards reliance on suppliers for technology solutions [1][11][14]. Group 1: Company Developments - Great Wall Motors launched the VLA intelligent driving model, showcasing its technological advancements in autonomous driving [1]. - Following the launch, its subsidiary, Haomo Zhixing, announced a complete shutdown, indicating the harsh realities of competition in the commercial sector [1]. - Haomo Zhixing's decline was foreshadowed by its failure to adapt to critical technological shifts, resulting in a significant reduction in workforce from 1500 to around 200 employees [1][3]. Group 2: Industry Trends - The trend among traditional automakers is moving away from self-research towards partnerships with suppliers, with companies like Chery and Great Wall Motors prioritizing manufacturing and sales over autonomous technology development [4][11]. - The autonomous driving industry has seen a significant decline in financing, dropping from 932 billion to 200 billion in three years, reflecting a cautious investment climate [17]. - The shift towards supplier solutions is becoming a standard practice, allowing automakers to focus on vehicle performance and brand identity rather than extensive in-house development [19]. Group 3: Competitive Landscape - New entrants like NIO, Xpeng, and Li Auto are positioned differently, focusing on building competitive advantages without the burden of traditional sales pressures [6]. - The failure of companies like Dazhuo Intelligent highlights the challenges faced by traditional automakers in balancing technological innovation with operational realities [10]. - The integration of external suppliers has become essential for traditional automakers to remain competitive in the rapidly evolving autonomous driving market [14][19].

Core Viewpoint - Li Auto has successfully transitioned from a follower to a leader in the smart driving sector by leveraging a unique self-research model and a collaborative supply chain approach, focusing on user-centric product development and efficient organizational practices [2][3][4]. Group 1: Company Strategy and Development - Since February 2021, Li Auto has initiated comprehensive self-research in smart driving, smart cockpit, and chip development, marking a significant shift in its operational strategy [3]. - The appointment of Wang Kai as CTO was pivotal, bringing extensive experience from his previous roles, including leading the MBUX smart cockpit project at Mercedes-Benz, which generated over $1.5 billion in revenue [4][6]. - Li Auto's strategic focus on a limited number of high-quality products, akin to Apple's model, has been instrumental in its market success [5]. Group 2: Technological Advancements - Li Auto made a critical decision to switch from the Mobileye EyeQ4 chip to Horizon's J3 chip for its smart driving system, achieving a remarkable seven-month timeline for mass production [7][14]. - The launch of the self-developed smart driving system, Li AD Max, in March 2022 marked a significant milestone in Li Auto's technological evolution [8]. - By 2023, Li Auto had accumulated 1.2 billion kilometers of effective data and achieved a cloud computing power of 13 EFLOPS, showcasing its commitment to data-driven development [32]. Group 3: Supply Chain and Collaboration - Li Auto's "roundtable cooperation model" with suppliers emphasizes collaboration over competition, allowing for a more efficient and responsive supply chain [17][20]. - The company has streamlined its supplier base, focusing on elite partners to enhance operational efficiency and reduce complexity [18][19]. - This collaborative approach has led to significant growth for suppliers, with Horizon's revenue increasing from 467 million yuan in 2021 to 1.552 billion yuan in 2023 [22]. Group 4: Talent and Organizational Structure - The establishment of a dedicated smart driving team, initially comprising only 20 members, has been crucial for rapid technological advancements [25]. - Li Auto's internal structure separates research and development (RD) from product development (PD), facilitating efficient collaboration and rapid iteration [28]. - The recruitment of top talent, such as Jia Peng from NVIDIA, has strengthened Li Auto's capabilities in data management and algorithm development [27]. Group 5: Future Outlook - Li Auto aims to become a leader in smart driving by 2024, with a focus on integrating AI technologies into its vehicles [37]. - The company's commitment to continuous improvement in user experience and data utilization positions it well for future growth in the competitive automotive landscape [29][34].