Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the smart driving industry, particularly the performance and outlook of various automotive companies, including BYD, Li Auto, Geely, Great Wall, and Chery [1][4][6]. Core Insights and Arguments - **BYD's Sales Forecast**: BYD's annual shipment forecast for its "Tiangsheng Zhi Yan" model has been revised down from 3 million to 1.4 million units due to poor sales, especially for the C1 version [1][4]. - **Performance of Other Models**: Models from Li Auto (L6, L7) and AITO (M7, M9) have exceeded sales expectations, while the impact of smart driving on overall shipments from Geely, Great Wall, and Chery remains minimal and stable [1][4]. - **Price Trends for Smart Driving Features**: Urban OA functions are expected to drop to the 150,000 RMB price range, while high-speed NV functions may reach the 100,000 RMB level. Mid-to-high-end models are increasingly expected to standardize high-speed LV functions [1][5]. - **Cost Reduction Strategies**: Automakers are reducing costs through domestic chips (e.g., Horizon G6) or self-developed chips, and by simplifying features to achieve basic urban OA [1][5]. - **Development Models**: Traditional OEMs are using a cooperative and gradual self-research model, resulting in slower implementation (over 18 months), while new players adopt a full-stack self-research and end-to-end model, achieving faster delivery (9-12 months) and smoother experiences [1][6]. - **Sensor Selection Criteria**: OEMs prioritize sensor selection based on scene requirements and the balance between cost and performance. L2 level focuses on pure vision solutions, while L3 typically includes LiDAR [1][7]. Additional Important Insights - **Market Share of Domestic Chips**: Over 60% of L2 level chips are domestically produced, with 70% from Horizon. The market share for L3 level chips is under 25%, primarily led by Huawei. By 2026, domestic L2 chip share is expected to exceed 80% [3][12]. - **Chip Supply Dynamics**: The first half of 2025 saw tight supply for automotive-grade chips due to high demand from manufacturers like BYD. However, supply is expected to balance out in the second half of 2025 and continue into 2026 [3][16][17]. - **Laser Radar Market**: The demand for laser radar is anticipated to remain strong, with many new models expected to launch in 2026, including those from traditional manufacturers and new players [3][17]. - **Competition in the Laser Radar Market**: The domestic laser radar market is currently dominated by four main players: Huawei, Hesai, Suteng, and Tudatong, with Suteng and Hesai holding about 70% of the market share [3][23]. - **Global Chip Market Trends**: The global automotive chip market is currently dominated by NVIDIA, which holds 80% of the domestic market share. However, as domestic alternatives like Horizon gain traction, NVIDIA's share is expected to decrease to around 60% [3][24]. This summary encapsulates the key points discussed in the conference call, highlighting the current state and future trends of the smart driving industry and the competitive landscape among automotive manufacturers.