Investment Rating - The investment ratings for the companies mentioned in the report are as follows: AAC Technologies Holdings (1), BYD (1), NavInfo (3), Thunder Software Technology (3), TSMC (1), Xiaomi (1) [9] Core Insights - The Shanghai Auto Show highlighted the ongoing developments in the automotive technology sector, with key players like AAC, Xiaomi, ThunderSoft, and NavInfo showcasing their latest innovations and strategies [1] - AAC is expanding its automotive product offerings, including a new motor system, and has received projects from both domestic and international customers [2] - Xiaomi's YU7 launch is scheduled for June/July, with a significant backlog of over 200,000 SU7 orders, indicating strong demand [3] - ThunderSoft is focusing on its Cockpit+AI solution, which is expected to drive growth amid increasing competition from consumer electronics ODMs [5] - NavInfo is transforming into a tier-1 solution provider, with significant R&D investments aimed at enhancing its smart driving and smart cockpit capabilities [6] Summary by Company AAC Technologies - AAC showcased its automotive products for the first time, including acoustic, haptic, optics, and MEMS inertial sensors, and has secured projects from NEV customers [2] - The company is diversifying its business from smartphones to enhance growth potential in the automotive sector [2] Xiaomi - Xiaomi's presence at the auto show was less prominent compared to previous years, but the YU7 launch remains on track, with a substantial order backlog for the SU7 model [3] - The upcoming earnings report in Q1 2025 and new product launches could serve as catalysts for the company's stock [3] ThunderSoft - ThunderSoft introduced its AquaDriveOS and Cockpit+AI solutions, which are expected to meet the growing demand for smart vehicle technologies [5] - The company anticipates a pickup in smart drive demand in Q1 2025, despite intensifying competition [5] NavInfo - NavInfo aims to position itself as a new tier-1 provider with capabilities in both hardware and software, supported by a strong AI infrastructure [6] - The company has secured significant projects for its basic driving and smart cockpit solutions, indicating robust demand for its offerings [6] Industry Trends - Supply chain concerns are affecting the adoption of AD/ADAS technologies, but the long-term trend remains positive [1] - The localization of automotive chips in China is progressing, with NEV makers moving towards higher computing power requirements for future smart driving needs [8] - Recent regulations from MIIT are impacting the promotion of autonomous driving technologies, leading to a shift in focus towards ADAS solutions [7]