Core Viewpoint - The article discusses the significant advancements made by Li Auto in the field of autonomous driving, particularly the introduction of the "end-to-end + VLM" system, which marks a turning point for the company in achieving industry leadership [5][7][40]. Group 1: Development of Autonomous Driving Technology - In March 2024, Li Auto's CEO expressed dissatisfaction with the company's autonomous driving progress, emphasizing the need for a shift to an end-to-end approach [4][9]. - The launch of the "end-to-end + VLM" system in July 2024 allowed Li Auto to finally experience true leadership in autonomous driving technology after years of following competitors [5][6]. - By October 2024, the trial driving of the new system accounted for 65% of user experiences in stores, indicating strong market enthusiasm [6][7]. Group 2: Market Performance and User Adoption - In 2024, the delivery share of models equipped with the AD Max system (featuring the new technology) reached 75.4% in the 300,000+ RMB segment and 84.6% in the 400,000+ RMB segment, a significant increase from just 20% earlier in the year [7][51]. - The rapid adoption of the end-to-end system led to a dramatic increase in user interest and sales, with the proportion of users experiencing the system rising to over 70% by the end of the year [51][52]. Group 3: Strategic Shifts and Team Expansion - In 2023, Li Auto began to learn from Huawei's approach to autonomous driving, significantly expanding its engineering team from around 600 to over 1,000 by the end of the year [10][11]. - Despite the team expansion, initial results did not meet expectations, prompting a strategic pivot towards the end-to-end model [11][24]. - The end-to-end project was initiated with a small, dedicated team, emphasizing the importance of voluntary participation and commitment to the project's success [27][28]. Group 4: Technical Innovations and Efficiency - The end-to-end project was completed in approximately 100 days, showcasing an unprecedented speed of development in the industry, with no significant errors reported during the process [46][56]. - The project utilized a one-stage end-to-end technology, integrating various functions into a single network, which allowed for more efficient processing and reduced complexity compared to traditional modular approaches [58][59]. - The success of the project was attributed to effective collaboration among team members and a strong focus on data-driven methodologies, which allowed for high-quality outcomes with a relatively small team [57][64]. Group 5: Data-Driven Approach - The foundation of Li Auto's success in autonomous driving is rooted in a robust data collection and processing system established by the team, which has been in development since 2018 [72][73]. - The company has emphasized the importance of high-quality data over sheer model complexity, leading to significant improvements in performance metrics [70][72].

Core Insights - The 2025 International Automotive Intelligent Cockpit Conference was held in Suzhou, focusing on AI-enabled cockpit innovation and the future ecosystem of human-vehicle interaction [1] - The conference featured discussions on key technologies, international standards, and talent cultivation in the intelligent cockpit sector, with participation from 800 experts and representatives [1][3] Industry Development - The global automotive industry is undergoing a historic transformation driven by technology and innovation, with China's intelligent cockpit sector leading due to its technological and market advantages [3] - The future development of intelligent cockpits requires a strong foundation in core technologies like cockpit models and high-performance chips, emphasizing user-centric design and international collaboration [3] Regional Insights - Jiangsu Province, as a major automotive industry cluster, has established a complete innovation system in areas like vehicle-mounted chips and intelligent cockpit solutions, positioning Suzhou as a key player in the intelligent connected vehicle sector [3] - The establishment of the Yangtze River Delta Technology Exchange Center is a result of strategic cooperation between the China Automotive Engineering Society and the Suzhou government, aimed at enhancing regional automotive industry development [4] Research Findings - The average score for intelligent cockpit evaluations reached 6.78, with most models scoring above 6, indicating significant advancements in technology and consumer experience [5] - The report on the intelligent cockpit standard system aims to establish a framework by 2026 and to lead global standards by 2035, filling gaps in key technology standards [5] Technological Innovations - The integration of technologies like Tesla's FSD and China's "vehicle-road-cloud" model is highlighted, with a focus on cost-effective solutions and the need for clearer business models in the intelligent connected vehicle sector [6] - New network security solutions, such as the Multi-Identification Network (MIN), are proposed to enhance data security and privacy in intelligent cockpits [7] User Experience and Interaction - The concept of "happy space" is introduced by Li Auto, emphasizing the role of intelligent cockpits in differentiating automotive brands through advanced interaction systems [8] - Companies like Zebra Zhixing are focusing on user value-driven transformations in intelligent cockpits, leveraging AI to create personalized user experiences [8] Future Directions - Unity's advancements in 3D real-time rendering technology are set to enhance intelligent cockpit functionalities, including music visualization and interactive navigation [9] - The industry is moving towards a more human-centered approach in cockpit design, exploring new applications like in-car gaming and meditation spaces [9]

Investment Rating - The industry investment rating is "Positive," indicating an expectation that the industry index will outperform the market index by more than 5% over the next six months [6]. Core Insights - The introduction of Tesla's Full Self-Driving (FSD) in China is expected to accelerate the development of intelligent driving, enhance the regulatory framework, and promote the commercialization of autonomous taxis, while intensifying competition in the high-end market [2]. - High-end intelligent driving is becoming more accessible, with companies like BYD and Geely offering advanced driving systems at lower price points, making high-end features available for under 100,000 yuan [3]. - The competitive landscape is shifting towards leading new energy vehicle manufacturers such as XPeng, Li Auto, Xiaomi, and Leap Motor, with significant delivery increases noted in early 2025 [4]. Summary by Sections Intelligent Driving Industry - The launch of Tesla's FSD in China is a pivotal moment for the intelligent driving industry, expected to push for advancements in regulations and standards [2]. - The competition in the high-end market is heating up, with major players like Huawei and XPeng introducing their own advanced driving systems [2]. High-End Intelligent Driving Accessibility - BYD has introduced its "Tian Shen Zhi Yan" intelligent driving system across all models, significantly reducing costs and making advanced features available for under 100,000 yuan [3]. - Geely has launched its "Qian Li Hao Han" intelligent driving system, which includes various levels of features and is set to enhance its market presence [3]. Competitive Landscape - In early 2025, XPeng led the new energy vehicle sector with 30,453 deliveries, followed by Li Auto and Leap Motor, indicating a strong competitive environment [4]. - Companies are adopting differentiated strategies to capture niche markets, with new models being introduced to boost sales during traditionally slow periods [4]. Future Outlook - The report anticipates that L2+ intelligent driving will proliferate in the market below 150,000 yuan, with urban navigation assistance (NOA) penetration in mid-to-high-end models expected to rise [7]. - The shift towards end-to-end large model technology may redefine industry standards, contrasting Tesla's pure vision approach with the prevalent "LiDAR + high-precision map" strategy in China [7].