Core Viewpoint - The newly drafted mandatory national standard for automatic emergency braking systems (AEBS) in light vehicles is set to replace the existing voluntary standard, expanding its applicability and requiring M1 and N1 category vehicles to be equipped with AEBS [2][3] Industry Impact - The implementation of the mandatory standard signifies a fundamental shift in safety philosophy, transforming active safety features from marketing differentiators to industry entry barriers [5] - The new regulations are expected to create a significant market opportunity, with the global AEBS market projected to reach approximately 4.9 trillion yuan by 2031, growing at a compound annual growth rate of 5.8% [5] Market Penetration - As of early 2024, the overall penetration rate of AEBS in China is around 60%, with higher rates in new energy vehicles at 62.9% [4] - The demand for AEBS in the mainstream passenger car market (priced between 80,000 to 160,000 yuan) could lead to an annual increase of over 5 million systems [6] Domestic Replacement Acceleration - The core components of AEBS have been dominated by international Tier 1 suppliers, but the new standard is accelerating the domestic replacement process, with domestic market share expected to rise from 45% in 2024 to over 70% by 2027 [9] - The market response has been positive, with significant stock price increases for domestic AEBS-related companies following the announcement of the new standard [9] Competitive Landscape - The AEBS industry is witnessing a race for capacity, with over 5 billion yuan invested in AEBS-related capacity by major listed companies since 2024 [11] - The competition is intensifying among different technical solutions, with a shift towards a hybrid approach of camera and radar systems expected to dominate the economic vehicle segment [8] Standardization Effects - The new standard will unify performance benchmarks, reducing market confusion and enhancing consumer understanding of AEBS capabilities [10] - All systems will need to meet minimum performance thresholds, which will help eliminate substandard products and refocus competition on user experience [10]