Core Insights - The "Vehicle-Road-Cloud Collaboration" is identified as the core path for the development of intelligent driving in China, emphasizing the need for a dual support system of smart roads and cloud computing for the realization of L3 to L4 level autonomous driving [1][3] - Recent policy actions, including the release of the draft for safety requirements of intelligent connected vehicles and conditional approval for L3 models, indicate that the auxiliary driving industry in China is entering a new phase of standardized development focused on safety quantification [1][5] Industry Developments - The auxiliary driving industry faces challenges such as a lack of unified performance baselines and improper promotional language, which can lead to dangerous behaviors among drivers [4] - The draft safety requirements transform safety concepts into quantifiable metrics, including 46 field tests, 72 hours of road tests, and specific thresholds for vehicle hazards and typical faults [4] - The Ministry of Industry and Information Technology has proposed a work plan to stabilize growth in the automotive industry, which includes conditional approval for L3 model production [5] Technological Advancements - The penetration rate of intelligent driving is increasing, with projections indicating that vehicles supporting high-speed and urban NCA will grow from under 2 million in 2023 to over 7 million by 2025 [6] - Leading tech companies and new automotive players are showcasing advantages in the market, with Huawei's ADS system accumulating 4 billion kilometers of safety mileage and XPeng Motors launching the world's first L3-capable AI car [6][7] - Traditional automakers like BYD are also accelerating their advancements, planning to equip 60% of new vehicles with advanced driving features by 2025 [7] Compliance and Standards - The systematic connection of policies and standards is crucial for the orderly advancement of autonomous driving technology, with recent initiatives aimed at bridging generational gaps in technology [8] - The draft has clarified the definitions of L2 to L5 level technologies, establishing boundaries between auxiliary driving and autonomous driving [8] - The industry is experiencing significant generational gaps, with leading companies advancing to urban NOA while others remain at basic levels of highway assistance [9] Future Trends - The competition in the auxiliary driving sector will increasingly focus on technological innovation and service experience optimization, with a shift from "selling functions" to "selling safety" [9][10] - The "Vehicle-Road-Cloud Collaboration" is expected to become a significant trend, enhancing road safety and traffic efficiency through effective information exchange between vehicles and infrastructure [10]