Core Viewpoint - The issuance of conditional permits for L3 autonomous driving vehicles marks a significant milestone, transitioning the technology from testing phases to formal product approval, benefiting the entire automotive and related industries [2][5][14]. Industry Impact - The approval of L3 autonomous driving not only affects the automotive sector but also positively impacts the chip and perception hardware supply chains, indicating a new watershed moment for the smart vehicle industry [3][14]. - The L3 autonomous driving vehicles from Changan and Arcfox are subject to strict operational conditions, including specific road types, urban areas, and speed limits, reflecting a cautious regulatory approach [5][6]. Policy Development - The path to L3 autonomous driving's "licensed operation" has been a gradual process over three years, beginning with the Ministry of Industry and Information Technology's (MIIT) 2022 notice on smart connected vehicle access management [8][9]. - The MIIT's recent guidelines emphasize the need for a joint application from automotive manufacturers and operational entities, ensuring safety monitoring and data management capabilities [8][9]. Corporate Strategies - Major automotive companies have accelerated their timelines for L3 autonomous driving, with Changan aiming for full-scene L3 by 2026 and GAC planning to launch its first L3 vehicle by late 2025 [10]. - Different companies are exploring various technological paths, with some focusing on sensor fusion and others on algorithmic advancements, highlighting the ongoing exploration in L3 technology [11]. Technical Requirements - L3 autonomous driving systems require advanced hardware capabilities, including multi-sensor integration and high-reliability computing systems, which are driving demand for specific components in the supply chain [13]. - Key players in the sensor and chip markets, such as OmniVision and Hesai Technology, are expected to see increased order stability as L3 technology scales [13]. Regulatory and Legal Considerations - The main challenges to L3 deployment are not technological but rather legal responsibilities and infrastructure readiness, necessitating adjustments in regulations and insurance frameworks [12]. - The cautious approach to L3 implementation aims to gather real-world operational data to inform future regulatory developments [12].

Core Insights - Huawei's commitment to not manufacturing cars but rather assisting automakers in creating high-quality vehicles is reiterated by the CEO of Huawei's Intelligent Automotive Solutions BU, Jin Yuzhi [2][10] - The launch of the "Qijing" high-end intelligent new energy brand in collaboration with GAC Group and the "Yijing" brand with Dongfeng signifies Huawei's strategic extension in response to evolving industry needs [3][5] - The relationship between Huawei's "Jing" and "Jie" series is clarified as complementary rather than competitive, addressing different market demands and collaboration scenarios [5][6] Market Dynamics - The Chinese automotive market remains a "blue ocean" with stable annual sales exceeding 20 million vehicles, yet only 2 million are expected to feature advanced driver-assistance systems (ADAS) by 2025, indicating significant growth potential [5][6] - The complexity of the smart automotive market necessitates a differentiated product matrix to cater to various consumer segments, from entry-level to luxury vehicles [5][6] Technological Collaboration - Both "Jing" and "Jie" series share core technologies from Huawei's ADS and Harmony cockpit, fostering a collaborative ecosystem that avoids internal competition [9][12] - Huawei's substantial R&D investment exceeding 50 billion since 2019, with over 10 billion allocated for 2024 alone, supports continuous technological advancement and cost-sharing among partners [12][18] Ecosystem Development - Huawei's approach emphasizes "complementarity rather than substitution," allowing automakers to retain their core competencies while benefiting from Huawei's technological expertise [11][20] - The establishment of a unified technical foundation and collaborative mechanisms within Huawei's ecosystem addresses industry challenges, promoting a shift from "scale leadership" to "technology leadership" [14][16] Consumer Impact - The integration of Huawei's OTA capabilities enhances vehicle value retention and user engagement, allowing for continuous feature updates and improved user experience [19][20] - The dual empowerment model of technology and ecosystem enables automakers to effectively reach target consumers, enhancing market penetration and brand recognition [13][20] Strategic Vision - Huawei's "not manufacturing cars" strategy is rooted in the understanding that the automotive industry requires multi-faceted collaboration for comprehensive upgrades across the supply chain [10][18] - The vision of "bringing intelligence to every vehicle" is supported by Huawei's commitment to fostering an open and win-win ecosystem, positioning the Chinese automotive industry for a more prominent role in the global smart mobility landscape [20]

Core Insights - The automotive industry is projected to see sales of approximately 2.857 million vehicles by August 2025, reflecting a month-on-month growth of 10.1% and a year-on-year growth of 16.4%, with new energy vehicle sales expected to reach about 1.395 million units, capturing a market share of 48.8% [1] - Continuous supportive policies for automotive consumption, combined with the upward trend in new energy vehicle sales, indicate robust industry demand growth [1] - The CEO of Huawei's Intelligent Automotive Solutions Business Unit has introduced the concept of "three waves" in the automotive industry, predicting that 2025 will mark the entry into the intelligent phase, with the ADS 4 system debuting L3 technology architecture for high-speed commercial solutions [1] - The price of battery-grade lithium carbonate remains stable at 73,550 yuan per ton, while copper prices have increased by 5% to 86,780 yuan per ton [1] Industry Overview - The Smart Automotive ETF (159889) tracks the CS Smart Automotive Index (930721), which selects listed companies involved in smart driving and vehicle networking technologies from the A-share market, covering the entire industry chain from hardware to software [1] - The index aims to reflect the overall performance and development trends of listed companies related to smart automobiles [1]

Core Insights - Huawei's intelligent driving solution, QianKun, has become a trusted brand among users, achieving significant milestones in assisted driving and parking capabilities [2][3] - The automotive industry is transitioning towards an era of embodied intelligence, characterized by three waves: electrification, intelligence, and automation [3] Group 1: QianKun Achievements - QianKun has accumulated a total assisted driving mileage of 5 billion kilometers and has performed parking assistance 280 million times, preventing 2.71 million potential collisions [2] - The average monthly assisted driving mileage per user is 727 kilometers, with over 50% of urban driving time and an average of more than 36 smart parking instances per month [2] - The QianKun system is now installed in over 1 million vehicles, with 28 cooperative models across various brands, including AITO, Deep Blue, and Audi [2] Group 2: Industry Trends - The first wave of the automotive industry is electrification (2015-2022), which significantly reduces travel costs by replacing fuel with electricity [3] - The second wave is the intelligence wave (2022-2027), where algorithms will replace drivers, enhancing safety and user experience while reducing accident risks [3] - The third wave, starting in 2027, will focus on automation, redefining safety and experience standards, and improving transportation efficiency [3] Group 3: Technological Development Path - By 2025, Huawei aims to launch the ADS 4 system, targeting L3 technology for commercial solutions, with capabilities for L3 pilot commercial use on highways and L4 testing in urban areas [3] - In 2026, the goal is to achieve large-scale commercial use of L3 on highways and pilot commercial use of L4 in urban settings, subject to regulatory approval [3] - By 2027, L3 is expected to scale up, and L4 will enter commercial stages, paving the way for the emergence of Robotaxi and logistics solutions [3]