Core Conclusions - The report advocates for a strong investment in automotive intelligence, highlighting that automotive intelligence represents a revolution in transportation. The three key aspects are: L3 intelligence aiding car manufacturers in sales, Robotaxi enabling software monetization for manufacturers, and the rise of domestic brands on a global scale [2][4]. - The year 2025 is projected to be a pivotal year for automotive intelligence, with urban NOA (the core experience of L3 intelligence) becoming a top consideration for consumers when purchasing vehicles. The report anticipates a significant increase in L3 intelligence penetration rates from 10% in 2025 to over 80% by 2027 [2][4]. - The automotive intelligence sector is characterized by a competitive elimination model, where companies will be categorized into three types: B-end Robotaxi operators, C-end personalized brands, and high-end vehicle manufacturers. Component suppliers will be divided into modular suppliers and single-category suppliers [2][4]. Market Overview - In June, the urban NOA penetration rate reached 22.3%, a month-on-month increase of 0.3 percentage points, indicating a stable level of adoption. The overall urban NOA penetration rate for the Li Auto 2025 model reached 61.5%, with a month-on-month increase of 6.6 percentage points, marking a significant growth trend [3][19]. - The report notes that the new generation of underlying architectures is being gradually implemented, with several key models launching with advanced driving architectures and AI capabilities [3][4]. Investment Recommendations - The report continues to favor investments in intelligent vehicles, emphasizing that intelligence is the core of the new vehicle cycle, with monthly sales tracking being crucial. The report suggests focusing on Hong Kong-listed companies such as Xpeng Motors, Li Auto, and Xiaomi Group, as well as A-share companies like BYD and SAIC Motor [2][4]. - There is a positive outlook for intelligent incremental components, including AI chips, domain controllers, and automotive electronics, with specific companies highlighted for their potential in these areas [2][4]. Consumer Willingness - The report explores whether consumers are willing to pay for intelligent features, indicating a growing acceptance and demand for advanced driving capabilities among consumers, as evidenced by the increasing penetration rates of urban NOA across various brands [9][19]. Supply Chain Tracking - The report provides a detailed analysis of the automotive intelligence supply chain, categorizing key hardware and software companies involved in the development of intelligent vehicles, including perception, decision-making, and execution components [6][8].

Core Viewpoint - The article emphasizes the importance of automotive intelligence as a revolutionary shift in transportation, predicting that 2025 will be a pivotal year for the industry, with significant increases in L3 automation penetration rates and a competitive landscape that favors strong players [2][4]. Group 1: Automotive Intelligence Revolution - Automotive intelligence is described as a transportation revolution, with three key components: L3 automation aiding car sales, L4 Robotaxi enabling software monetization, and the global rise of domestic brands [2][4]. - The penetration rate of L3 automation is projected to increase from 10% in 2025 to over 80% by 2027, driven by consumer demand and new vehicle cycles [2][4]. Group 2: June Summary of Intelligence - In June, the penetration rate of urban NOA (L3 automation) reached 22.0%, marking the first time it surpassed 20% [3][9]. - The overall urban NOA penetration rate for the Li Auto 2025 model reached 54.9%, a month-on-month increase of 10.6 percentage points, indicating a significant shift in consumer demand [3][9]. Group 3: Key New Models - The Xiaopeng G7 Ultra was launched with the industry's first L3-level computing platform, featuring three Turing AI chips with an effective computing power of over 2200 TOPS [3][9]. - The Xiaomi YU7 model includes the NVIDIA AGX Thor chip, enhancing its performance with a threefold increase in clip count compared to the previous version [3][9]. Group 4: Investment Recommendations for 2025 - The article recommends focusing on intelligent vehicles as the core investment theme, with a preference for Hong Kong stocks over A-shares, highlighting companies like Xiaopeng Motors, Li Auto, and Xiaomi Group [4][8]. - It also suggests investing in incremental components related to AI chips and domain controllers, naming companies such as Horizon Robotics and Desay SV [4][8]. Group 5: Market Outlook and Trends - The automotive intelligence market is expected to see a significant increase in the penetration of new energy vehicles, with projections indicating a rise to 50%-80% by 2027 [18]. - The article outlines a two-phase consumer willingness to pay for intelligence, with the first phase focusing on hardware sales and the second phase aiming for software monetization [18].

Core Conclusions - The report suggests a strong investment focus on automotive intelligence, viewing it as a transformative revolution in transportation, with three key phases: helping automakers sell cars, enabling software monetization through Robotaxi, and the global rise of domestic brands [2] - The year 2025 is anticipated to be a pivotal point for automotive intelligence, with urban NOA (Level 3 intelligence) becoming a top consideration for consumers when purchasing vehicles. The report tracks the penetration rate of L3 intelligence from 10% in 2025 to over 80% by 2027 [2][4] - The automotive intelligence landscape is characterized by a competitive elimination model, where companies will be categorized into three types: B-end Robotaxi operators, C-end personalized brands, and high-end vehicle manufacturers. Component suppliers will be divided into modular and single-category suppliers [2] Consumer Willingness to Pay for Intelligence - As of June, the urban NOA penetration rate reached 22.0%, marking the first time it surpassed 20%. The AITO M8 features urban NCA as standard across all models, with increasing deliveries. The overall urban NOA penetration rate for Li Auto's 2025 models is 54.9%, up 10.6 percentage points from the previous month, also surpassing 50% for the first time [3][9] - Key new models include the Xiaopeng G7 Ultra, which debuted with the Turing AI chip, providing an industry-first L3-level computing platform with effective computing power exceeding 2200 TOPS. The Xiaomi YU7 features the NVIDIA AGX Thor chip with 700 TOPS, significantly enhancing its performance metrics [3][9] Investment Recommendations for 2025 - Continued optimism for intelligent vehicles, with a focus on new vehicle cycles and monthly sales tracking. The report favors Hong Kong-listed companies (e.g., Xiaopeng Motors, Li Auto, Xiaomi Group) over A-share companies (e.g., BYD, SAIC Group, Seres) [2] - Positive outlook for incremental intelligent components, including AI chips (e.g., Horizon Robotics, Black Sesame Intelligence), domain controllers (e.g., Desay SV, Huayang Group), steer-by-wire chassis (e.g., Bertel, Nexperia), and automotive electronics (e.g., Baolong Technology, Jingwei Hirain) [2] Market Size and Projections - The report outlines a significant growth trajectory for the Robotaxi market, projecting a domestic market size of 0 to 30 billion yuan by 2025-2027, with annual sales expected to reach 1.5 million units by 2030 [10][11] - The core task of automotive intelligence from 2025 to 2027 is to drive the penetration rate of domestic new energy vehicles (NEVs) to between 50% and 80% [11] Supply Chain Tracking - The report provides a detailed breakdown of the automotive intelligence supply chain, categorizing key hardware and software companies involved in perception, decision-making, and execution [6] - Notable companies in the hardware segment include Sunyu Optical Technology, Hesai Technology, and NVIDIA, while software companies include WeRide and Pony.ai [6] Brand Performance in Urban NOA - Xiaopeng's overall urban NOA penetration rate is 61.3%, with a 7.4 percentage point increase, driven by the G6/G9 models. AITO's penetration rate is 95.0%, with a 4.1 percentage point increase due to the M8 model's performance [17] - Li Auto's urban NOA penetration rate is 54.9%, marking a significant increase, while Wey's penetration rate stands at 95.8%, reflecting strong demand for intelligent driving features [17]