Core Insights - Horizon's HSD (Horizon SuperDrive) has achieved significant upgrades, marking a milestone with over 10 million units produced in the Journey family [1][8] - The HSD system features a one-stage end-to-end architecture combined with reinforcement learning, enhancing driving safety, efficiency, and user experience [2][3] Group 1: HSD System Features - The HSD system utilizes a one-stage end-to-end architecture, which reduces response delays and improves information transmission, leading to a more human-like driving experience [2][3] - The introduction of reinforcement learning allows the HSD system to self-explore and interact within its world model, enhancing its scene understanding and reasoning capabilities [3][7] Group 2: Performance and User Experience - During real-world testing, the HSD demonstrated low system latency, strong defensive driving capabilities, and seamless control, significantly improving the user experience [6] - The system can quickly adapt to unexpected scenarios, such as construction zones or sudden lane changes, showcasing its advanced scene recognition and decision-making abilities [6][7] Group 3: Market Launch and Production Goals - The star model, the ET5, equipped with the Horizon HSD, is set to launch in November 2025, integrating the latest urban driving assistance technology [8] - Horizon plans to accelerate the commercialization of HSD, aiming for large-scale production by the end of this year, with partnerships established with over 10 global automotive brands [8]

Core Insights - Horizon showcased its upgraded urban auxiliary driving system HSD at the "HSD Pioneer Experience Day" in Beijing, featuring a "one-stage end-to-end + reinforcement learning" architecture that overcomes traditional separation limitations [1] - The HSD system demonstrated low latency, defensive driving, and human-like control capabilities during real-world tests in complex urban environments [1] - The system is designed to self-evolve through reinforcement learning, maintaining stable performance in extreme conditions such as tidal lane changes and unpaved roads [1] - The Xingtai ET5 will be the world's first vehicle equipped with Horizon's HSD and the Journey 6P chip, set to launch in November 2025 [1] - Horizon plans to enter mass production of the HSD system by the end of this year, with expectations to achieve millions of installations over the next 3 to 5 years, promoting the widespread adoption of auxiliary driving technology [1]

Group 1 - The Chery Exeed brand officially unveiled the new mid-size SUV, Exeed ET5, at the 2025 Chengdu International Auto Show, marking it as the world's first model equipped with the Horizon SuperDrive (HSD) urban assisted driving system [1][2] - The Exeed ET5 features a range-extended power system with a 1.5T range extender, delivering a maximum power of 115 kW, paired with a 32.66 kWh lithium iron phosphate battery, achieving a 0-100 km/h acceleration time of 7.8 seconds and a pure electric range of 205 km [1] - The Exeed ET5 is set to officially launch in November 2023 [1] Group 2 - Since the strategic partnership began in 2021, Chery Group and Horizon have jointly launched multiple models based on the Journey family computing solution, covering Chery's four major brands [2] - The Exeed ET5 features the Falcon 700 assisted driving system, which is globally debuting with deep integration of Horizon HSD, with plans for more models under Chery Group to adopt Horizon HSD in the future [2] - Horizon's founder and CEO expressed the company's commitment to high-quality technological products through the HSD system, aiming to collaborate with Chery and Exeed to usher in a new era of smart automobiles [2]

Core Insights - The penetration rate of passenger car driving domain controllers is projected to reach 31% by June 2025, with Nvidia's chip share increasing to 53.5%, marking a year-on-year growth of 25.4% [1][3] - The overall market for L2 and above autonomous driving features in passenger vehicles has increased by 13 percentage points year-on-year, reaching a penetration rate of 29.7% by June 2025 [4] Industry News - Waymo has received the first autonomous vehicle testing license in New York City [2] - The Shangjie H5 has launched with the HUAWEI ADS4 driver assistance system [2] - Horizon Robotics has upgraded its HSD, with the first model being the Chery Xingtu E05 [2] - Pony.ai has officially launched autonomous driving services in Shanghai's Pudong district [2] - WeRide has released an end-to-end driver assistance solution expected to be mass-produced by 2025 [2] - Hesai Technology has secured a contract for laser radar with a brand under Toyota, with mass production starting in 2026 [2] - The new generation of the IM LS6 will feature the Supcon Juchuang 520-line laser radar [2] High-Frequency Data Updates - The penetration rate of 8-megapixel cameras in passenger vehicles has reached 39.7%, a year-on-year increase of 22 percentage points [3] - The market share of laser radar in passenger vehicles has risen to 10%, with Huawei leading at 47% market share [3] Sensor and Control Unit Penetration - By June 2025, the penetration rates for front-view cameras, millimeter-wave radars, and laser radars are 67.6%, 57.4%, and 9.7% respectively, with year-on-year increases of 4, 5, and 2 percentage points [4] - The penetration rate of autonomous driving domain controllers in passenger vehicles is 30.9%, reflecting a year-on-year increase of 13.1 percentage points [4] Smart Cabin and Connectivity - The penetration rates for 10-inch and above central screens, 10-inch and above LCD instrument panels, HUDs, and smart cabin domain controllers are 85.2%, 50%, 19.4%, and 40.8% respectively, with varying year-on-year changes [4] - The penetration rates for OTA and T-BOX technologies are 76.8% and 69.0%, with year-on-year changes of +2 and -7 percentage points [4] Investment Recommendations - Recommended companies for complete vehicles include XPeng Motors, Leap Motor, and Geely [5] - For L4 autonomous driving, recommended companies are Pony.ai and WeRide [5] - Component recommendations include Supcon Juchuang and Hesai Technology for data acquisition, Hu Guang Co. for data transmission, and Horizon Robotics, Black Sesame, Kobot, Huayang Group, and Junsheng Electronics for data processing [5]

Core Viewpoint - Horizon has launched its most significant upgrade of the high-performance urban auxiliary driving product HSD, which is recognized as the "most Tesla-like FSD system" in China, enhancing safety, efficiency, and comfort in driving [3][5]. Group 1: Product Development and Features - HSD is built on the Journey 6P platform, achieving ultra-low latency from "photon input to trajectory output" and introducing reinforcement learning for maximizing model potential [8]. - The product covers various driving scenarios, including urban areas, highways, rural roads, and parking lots, and can handle complex driving tasks without relying on memory mapping [3][5]. - Horizon has established cooperation intentions with nearly 10 global automotive brands, with the first mass production set to be launched on Chery's Exeed Star Era E05 [3][5]. Group 2: Market Trends and Growth - The high-level auxiliary driving technology is transitioning from validation to large-scale adoption, with 902,200 new cars equipped with urban NOA delivered in China in the first five months of the year, marking a 152.5% year-on-year increase [5]. - Horizon has achieved over 8 million sets of front-mounted mass production shipments and over 200 mass-produced vehicle models as of the end of Q1 this year [16]. Group 3: Strategic Vision and Competitive Edge - The founder and CEO of Horizon emphasizes the importance of continuous technological iteration and the launch of high-performance products to maintain market leadership [16]. - Horizon's strategy of "soft and hard integration" has allowed it to achieve over 1000 times improvement in computing performance over the past decade, supporting the mass production of over 10 computing solutions [19][21]. - The company aims to become a leading player in the high-level auxiliary driving market, leveraging its unique position as a "full-stack soft and hard technology enterprise" with extensive practical experience [23].

Core Viewpoint - The emergence of Momenta's self-developed driving chip marks a significant shift in the domestic intelligent driving industry, transitioning from a software-only company to a full-stack supplier, posing new competitive challenges to existing players in the market [1][2][20]. Company Overview - Momenta, established in 2016, focuses on high-performance intelligent driving solutions, targeting both L2 and L4 markets, and has partnerships with major global automakers, including SAIC, BYD, and Toyota [2][3]. - The company holds the largest market share in urban NOA technology at 60.1%, with cumulative sales of 114,000 vehicles equipped with its technology [3][19]. Self-Developed Chip Significance - Momenta's self-developed chip is positioned for the mid-range market, offering cost advantages and compatibility with existing products, which enhances its competitive edge [6][19]. - The strategy of "downward integration" is expected to create stronger competitive barriers and higher value capture capabilities for the company [6][10]. Impact on Competitors - The introduction of Momenta's chip poses significant challenges to NVIDIA and Qualcomm, as it allows automakers to transition smoothly from their solutions, increasing competitive pressure on these established players [8][10]. - Domestic chip manufacturers like Horizon Robotics and Black Sesame are also facing heightened competition, as Momenta's software expertise may overshadow their advantages [10][11]. Implications for Automakers - Automakers are reevaluating the necessity and cost-effectiveness of in-house chip development in light of Momenta's competitive offerings, particularly for resource-constrained new entrants [12][14]. - The shift towards Momenta's integrated solutions may lead to a reassessment of self-research strategies among automakers, balancing differentiation with cost advantages [15][21]. Strategic Challenges Ahead - Momenta faces challenges in achieving large-scale production and meeting stringent automotive safety standards, which are critical for its long-term success [20][21]. - The competitive landscape is expected to intensify as established players like NVIDIA and Qualcomm may respond with price cuts or enhanced technology to counter Momenta's market entry [20][21].

Core Viewpoint - The emergence of Momenta's self-developed driving chip marks a significant shift in the domestic intelligent driving industry, transitioning from a software-only company to a full-stack supplier, which introduces new competition and challenges for existing players in the market [2][3][27]. Group 1: Company Overview - Momenta, established in 2016, focuses on high-performance intelligent driving solutions, targeting both L2 and L4 markets, and has established partnerships with numerous leading automotive manufacturers globally, including SAIC, BYD, and Toyota [3][4]. - As of now, Momenta holds the highest number of high-level intelligent driving projects and partnerships among suppliers, with a cumulative sales volume of 114,000 vehicles equipped with its city NOA technology, leading the industry [4][26]. Group 2: Market Impact - Momenta's self-developed chip primarily targets the mid-range market, maintaining compatibility with existing mainstream products while offering cost advantages, which could enhance its competitive edge and operational efficiency [8][10]. - The entry of Momenta into chip development poses significant challenges to established players like NVIDIA and Qualcomm, as it allows for seamless transitions for automotive manufacturers from existing solutions to Momenta's offerings, potentially disrupting their market positions [12][14]. Group 3: Competitive Landscape - The competition landscape is shifting, with traditional chip manufacturers like Horizon and Black Sesame facing increased pressure from Momenta's integrated software and hardware solutions, which could undermine their market differentiation [14][15]. - Emerging chip companies, such as Weijing, Aixin Yuanzhi, and Xingchen, may find their market space further constricted as Momenta leverages its software expertise to optimize hardware solutions, creating a significant competitive barrier [15][28]. Group 4: Automotive Manufacturers' Strategies - Automotive manufacturers that have invested heavily in self-developed chips, like Xiaopeng and Li Auto, may need to reassess the value of their investments in light of Momenta's cost-effective and technologically superior solutions [18][20]. - The shift towards Momenta's offerings may prompt a reevaluation of self-development strategies among car manufacturers, potentially leading to a focus on key components rather than full in-house development [21][22]. Group 5: Industry Trends - The trend of software companies integrating hardware solutions is gaining momentum, as evidenced by Momenta's successful transition, which may influence other players in the industry to adapt their business models accordingly [23][25]. - The competitive dynamics in the intelligent driving sector are evolving, with companies needing to balance differentiation and cost-effectiveness in their strategies to remain viable in a rapidly changing market [28].

Core Viewpoint - The 2025 International Automotive and Supply Chain Expo in Hong Kong showcased Horizon's advanced driving technology, highlighting its innovative contributions to the automotive industry and its commitment to smart driving solutions [1][3][5]. Group 1: Event Overview - The expo served as a platform for showcasing new ideas, technologies, and products in the automotive industry, emphasizing the global trends of vehicle intelligence and electrification [3]. - Horizon's products, including the Horizon SuperDrive™ (HSD) and the Journey® 6 series, were prominently featured, demonstrating the company's full-stack technology capabilities [1][3]. Group 2: Product Highlights - Horizon's HSD system received the 2025 China Automotive Supply Chain Innovation Achievement Award for its human-like driving experience and reliable technology [6]. - The HSD is the first fully integrated urban driving assistance system developed in China, utilizing the Journey 6P computing solution to provide a seamless driving experience [6][8]. Group 3: Strategic Partnerships and Collaborations - Horizon has established comprehensive cooperation with Chery Group for the mass production of HSD, which will debut in the global market under the Starway brand in 2025 [10]. - The company has formed partnerships with over 40 automotive brands, resulting in more than 310 vehicle models equipped with its driving assistance solutions [13]. Group 4: Market Position and Future Outlook - Horizon has achieved significant market penetration, with over 8 million units of its driving assistance solutions shipped, indicating that one in three smart vehicles in the market is equipped with Horizon's technology [13]. - The company aims to lead the innovation in the smart driving sector by promoting the widespread adoption of its technology and enhancing the safety and intelligence of vehicles [15].

Investment Rating - The report maintains an "Outperform" rating for the industry [1] Core Insights - The high-end strategy of automotive companies is categorized into two types: those with clear advantages focusing on their strengths and those adopting benchmarking strategies [4][58] - The tightening regulations on intelligent driving are leading to a shift in marketing strategies among automotive companies, emphasizing safety and compliance [28][59] - Leading intelligent driving suppliers are expanding their product matrices and customer bases through integrated hardware and software solutions [60] Summary by Sections 1. Leveraging Strengths for Brand Advancement - Automotive companies like Li Auto, Great Wall Motors, and Xiaomi are focusing on their unique strengths to enhance brand positioning [4][58] - Li Auto's MEGA model maintains a flagship position with a price above 500,000 yuan, while Great Wall Motors continues to deepen its off-road market with the launch of the Tank 300 [8][19] - The introduction of new large SUVs during the 2025 Shanghai Auto Show aims to capture market share and elevate brand value [9][21] 2. Strengthening Safety and Regulatory Compliance - The intelligent driving sector is entering a period of stringent regulation, with new guidelines affecting marketing and OTA upgrades [28][29] - Companies are adjusting their marketing strategies to highlight safety features and avoid misleading claims about autonomous capabilities [35][36] 3. Leading Intelligent Driving Suppliers: Integrated Solutions and Rich Product Matrix - Major suppliers like Huawei and Horizon Robotics are offering diverse solutions across various price segments, with Huawei's ADS 4 and Horizon's HSD series [42][60] - High-end products are undergoing further iterations, with Huawei's ADS 4 flagship version introducing commercial L3 solutions [46][60] - The rapid expansion of user bases and significant R&D investments are leading to economies of scale for these suppliers [50][60] 4. Investment Recommendations - The report recommends focusing on automotive companies with distinctive brand advantages and ongoing development, specifically highlighting Li Auto, Great Wall Motors, and Xiaomi [58][60] - It also suggests looking at companies benefiting from the scale of new energy vehicles, such as BYD and Geely, and suppliers like Horizon Robotics and Fuyao Glass that are poised to gain from the proliferation of intelligent driving technologies [60]

Monthly Sales Data - In March, the retail sales of passenger cars in China reached 1.94 million units, a year-on-year increase of 14.4% and a month-on-month increase of 40.2% [2] - Cumulative sales from January to March totaled 5.127 million units, reflecting a year-on-year growth of 6.0% [2] - In March, wholesale sales of new energy passenger cars hit 1.128 million units, up 35.5% year-on-year and 35.9% month-on-month [2] - Cumulative wholesale sales for new energy vehicles from January to March reached 2.847 million units, marking a year-on-year increase of 42.8% [2] - For April, retail sales of narrow passenger cars are expected to be 1.75 million units, with new energy vehicles projected at 900,000 units [2] Weekly Data - From April 14 to April 20, the number of new passenger car registrations in China was 387,000, a year-on-year increase of 9.4% and a month-on-month increase of 12.1% [3] - Among these, new energy vehicle registrations totaled 204,300, showing a year-on-year increase of 28.9% and a month-on-month increase of 10.9% [3] - Cumulative registrations for April (from April 7 to April 20) reached 732,200, up 10.3% year-on-year, with new energy vehicles accounting for 388,500 registrations, a year-on-year increase of 27.7% [3] Market Performance - In the week of April 21 to April 25, the CS Auto index rose by 4.98%, with the CS Passenger Vehicle index increasing by 3.77% [3] - The CS Commercial Vehicle index saw a rise of 2.26%, while the CS Auto Parts index increased by 6.72% [3] - The performance of electric vehicles and smart cars also improved, with increases of 3.53% and 3.25% respectively [3] - Year-to-date, the CS Auto index has risen by 6.99%, outperforming the CSI 300 index by 4.6 percentage points [3] Industry News - Xiaopeng Motors announced that its world model will be applied to robotics and flying cars, with a high computing power utilization rate of over 90% [4] - The Zeekr 007GT was officially launched on April 15, priced between 199,900 and 229,900 yuan, focusing on aerodynamic enhancements [4] - The AITO M8 was launched on April 16, featuring advanced Huawei technologies and achieving over 32,000 pre-orders within 24 hours [5] - BYD's new brand, Equation Leopard, launched the Ti3 SUV on April 16, with a starting price of 133,800 yuan [6] - Stellantis and Leap Motor announced a local assembly project in Malaysia, with an initial investment of 5 million euros [7] Government News - The Ministry of Industry and Information Technology held a meeting to discuss the management of intelligent connected vehicle product access and software online upgrades [13] - The Ministry of Public Security reminded drivers to use intelligent driving assistance features cautiously, warning against false advertising [13] - The China Association of Automobile Manufacturers issued a proposal to standardize the marketing and application of driving assistance technologies [13]