Investment Rating - The report maintains an "Outperform" rating for the automotive industry [4][5][6]. Core Insights - The automotive industry is experiencing significant advancements in smart driving technologies, with a notable increase in the penetration rates of L2 and above functionalities in passenger vehicles, reaching 30.4% as of July 2025, up 15 percentage points year-on-year [3]. - The report highlights the strategic partnerships and market entries of key players, such as Horizon's collaboration with Hello to accelerate Robotaxi commercialization and Hesai Technology's listing on the Hong Kong Stock Exchange [1][4]. - The report emphasizes the growing importance of high-resolution cameras and advanced driving chips, with 800 million pixel cameras expected to reach a penetration rate of 66.7% by July 2025, and NVIDIA's driving chip market share increasing to 57.5% [2][3]. Summary by Sections Industry News - The Ministry of Industry and Information Technology plans to introduce mandatory national standards to set safety thresholds for autonomous driving technologies [1]. - Key developments include Xiaopeng Motors entering five European markets with new models and the successful road testing of Robotaxis in Dubai and Singapore [1][15][16]. High-Frequency Core Data Updates - By July 2025, the penetration rate of 800 million pixel front-view cameras in passenger vehicles is projected to be 66.7%, with a year-on-year increase of 6 percentage points [2]. - The market share of LiDAR in passenger vehicles is expected to rise to 10.7%, reflecting a year-on-year increase of 3.3 percentage points [2]. Smart Driving - The penetration rate of L2 and above smart driving functionalities in passenger vehicles has increased by 15 percentage points year-on-year, reaching 30.4% as of July 2025 [3]. - The report notes that the penetration rates for various sensors, including front-view cameras and LiDAR, have shown consistent growth [3]. Investment Recommendations - The report recommends investing in companies such as Xiaopeng Motors, Leap Motor, and Geely for complete vehicles, and companies like Hesai Technology and Horizon Robotics for components [4][5].

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]