Core Viewpoint - The core strategy of Leap Motor is to "exchange free services for market share" by offering free advanced driving assistance software, significantly lowering user barriers and attracting more customers to experience smart driving features [3][4]. Group 1: Company Strategy - Leap Motor announced that starting April 10, 2025, it will provide free access to smart driving software, including the High-speed Navigation Assistance (NAP) feature, for first-time car owners [2]. - The company will refund users who previously paid for the NAP feature by May 31, 2025 [2]. - This strategy aims to accumulate a large amount of real-world driving data, which could lead to long-term profitability through data services and connected vehicle ecosystems [3]. Group 2: Market Reaction - The capital market's reaction to Leap Motor's free strategy has been polarized, with significant stock price fluctuations following the announcement [3]. - Analysts express concerns about whether the company can achieve long-term profitability by increasing hardware sales while sacrificing software revenue [3][4]. Group 3: Competitive Landscape - Leap Motor's free smart driving policy directly impacts the pricing strategies of competitors in the same segment, potentially reducing their premium pricing space [3]. - The company is targeting the 100,000 to 200,000 yuan market, positioning itself against brands like Tesla and NIO [3]. Group 4: Financial Implications - Leap Motor's decision to offer free software could result in a loss of at least 1.25 billion yuan in software revenue, assuming an estimated 5,000 yuan per vehicle for 250,000 units [4]. - The starting price for key models like C10 and C11 has dropped to the 120,000 yuan range, further compressing profit margins [4]. Group 5: Industry Trends - The trend of offering free or bundled smart driving features is becoming more common in the Chinese automotive market, with 25.44% of new cars delivered in 2024 featuring limited-time free smart driving promotions [6]. - The competitive landscape is shifting as companies struggle to monetize smart driving features amid declining consumer willingness to pay for them [7]. Group 6: Data Ecosystem - The competition among automakers is increasingly focused on data ecosystems, with user data becoming a core asset for optimizing algorithms and providing services [8]. - Companies must balance compliance with regulations and the commercial value of user data to succeed in this evolving landscape [8].