Core Viewpoint - The release of the draft notice for strengthening the recall and supervision of intelligent connected new energy vehicles signifies a more precise and comprehensive regulatory approach in the industry, particularly in the context of the rapid promotion of advanced driver-assistance systems and innovations in smart cockpit applications [2][3][4]. Group 1: Regulatory Focus - The draft notice emphasizes a problem-oriented approach, identifying four priority safety issues that need to be addressed, including inadequate safety prompts, data security risks, misleading market promotions, and frequent safety incidents during the use of driver-assistance systems [3][4]. - It establishes a full lifecycle and process safety management framework, providing legal basis and implementation norms for the supervision of intelligent connected vehicles [3][4]. - The document clarifies corporate responsibilities regarding product consistency, recall management, and promotional activities, including prohibiting misleading advertising [3][4][5]. Group 2: Enforcement Mechanisms - The draft notice provides specific enforcement mechanisms for regulatory authorities, allowing for targeted checks on technical parameters, OTA records, and accident reports [4][5]. - It introduces a three-dimensional approach to supervision, including routine compliance checks, targeted investigations, and special audits to ensure comprehensive coverage of regulatory requirements [5][6]. - The emphasis on actionable, verifiable, and accountable measures indicates a shift from theoretical regulations to practical enforcement [4][5]. Group 3: Industry Adaptation - The new regulatory framework is expected to prompt a reevaluation of the development logic for driver-assistance functions, prioritizing safety, stability, reliability, and prudence in product development [7][11]. - Companies are encouraged to adopt a proactive approach to safety risk management throughout the entire lifecycle of intelligent connected vehicles, from research and development to production and post-market activities [6][7]. - The draft notice is likely to accelerate the development and application of driver monitoring systems and enhance the overall safety culture within the industry [10][11]. Group 4: Testing and Compliance - Testing institutions are expected to enhance their capabilities to support both corporate R&D and regulatory compliance, transitioning from surface-level compliance to in-depth code-level verification [9][10]. - The draft notice necessitates the establishment of a comprehensive testing framework that includes functional safety, cybersecurity, and data compliance assessments [9][10]. - There is a call for the creation of a national testing scenario database and evaluation standards to support the evolving regulatory landscape [11].

Core Viewpoint - The recall of Xiaomi's SU7 vehicles, involving 117,000 units, aims to enhance the reliability of the advanced driving assistance system, despite not requiring physical part replacements, raising questions about the nature of recalls and the role of OTA upgrades in addressing safety issues [2][4]. Group 1: Recall Definition and Implementation - A recall is predicated on the existence of defects, and OTA upgrades are a method of executing recalls, which can improve efficiency and reduce costs [3][8]. - The National Market Supervision Administration has received 4,047 reports of OTA upgrade activities affecting 486 million vehicles by the end of 2024, with 19 OTA recalls involving 4.068 million vehicles in 2024, marking a 246.8% increase from the previous year [3]. - The definition of a recall includes actions taken by manufacturers to eliminate defects in sold vehicles, which can involve free repairs, replacements, or refunds [4]. Group 2: Nature of Xiaomi's Recall - Xiaomi's SU7 recall is classified as a passive recall, initiated under the investigation of the National Market Supervision Administration, rather than an active recall [5]. - The recall number for Xiaomi's SU7 indicates a safety defect, categorized as "I" for investigation-influenced recall, contrasting with other manufacturers like FAW Toyota and Xpeng, which have conducted active recalls [6]. Group 3: OTA vs. Recall - OTA upgrades are not equivalent to recalls and should not replace them; they are merely a technical service method that can be used to address defects [9]. - Tesla exemplifies the use of OTA upgrades to resolve defects, having recalled 1.1 million vehicles in 2023, primarily addressing software issues through OTA rather than physical recalls [7]. - The National Market Supervision Administration emphasizes that while OTA can enhance recall completion rates and reduce costs, it should not be used to evade the responsibilities associated with recalls [9].

Core Insights - The article discusses the increasing regulation of Over-The-Air (OTA) updates in the smart electric vehicle industry, highlighting the shift from a "free trial" approach to mandatory compliance and oversight [1][2][3] - The new regulatory framework aims to ensure that all OTA updates are properly tested and approved before being pushed to consumers, marking a significant change in how automotive companies can operate [2][3][11] Regulatory Changes - The recent notification from the Market Regulation Administration and the Ministry of Industry and Information Technology emphasizes that all OTA upgrades must be filed for approval, especially those related to core functions like autonomous driving [2][3] - This regulatory shift has led to a slowdown in OTA updates across the industry, affecting companies like Tesla, XPeng, and Aito, which have faced delays in their planned updates due to compliance issues [2][3] User Experience and Expectations - The decline in OTA update frequency has resulted in user dissatisfaction, with many consumers expressing frustration over the lack of new features and updates, leading to concerns about the reliability of their vehicles [4][6] - Legal experts warn that failure to deliver on promises of "lifetime OTA" updates could lead to consumer rights violations and potential lawsuits, impacting brand reputation [6][11] Future of OTA and Revenue Models - OTA is evolving from a free service to a potential revenue stream, with companies like Tesla already generating significant income from paid software upgrades [8][10] - The automotive software market is projected to grow substantially, with estimates suggesting a tripling in size from €76 billion to €252 billion between 2020 and 2030, indicating a shift in focus towards enhancing functionality and value rather than just update frequency [10] Conclusion - The current pause in OTA updates presents both challenges and opportunities for the industry, as companies must adapt to stricter regulations while also improving the safety and reliability of their software [11] - The regulatory changes signify a transition in China's smart automotive sector from encouraging innovation to prioritizing safety and compliance, which may ultimately strengthen consumer trust in the long run [11]

Group 1 - The core viewpoint of the news is the release of a draft notification by the State Administration for Market Regulation and the Ministry of Industry and Information Technology aimed at strengthening the recall, production consistency supervision, and standardized promotion of intelligent connected new energy vehicles [1] - The draft notification specifically addresses the need to regulate the promotion and use of Level 2 (L2) driver assistance systems by car manufacturers, which is expected to play a significant role in ensuring safety [1] - The document includes requirements for software upgrades, targeting current issues related to the potential concealment of defects through Over-The-Air (OTA) updates by companies [1][3] Group 2 - There is a necessity to enhance driver training, as traditional driving schools focus on conventional driving skills, while future systems require drivers to develop a safety awareness regarding the use of driver assistance and autonomous driving systems [4] - The interaction between the driver and the system in Level 3 (L3) conditional autonomous driving systems will require drivers to master new skills, such as responding to takeover prompts during assisted driving [6] - China possesses significant advantages in the development of L3, L4, and L5 autonomous driving technologies, including a complete industrial chain for intelligent connected new energy vehicles and a rich talent pool of engineers [7][9]

Core Viewpoint - Leap Motor officially announced the rollout of OTA updates for the 2024 models C11 and C01, expected to be completed by August 18, enhancing user experience with new features and optimizations [1] Group 1: OTA Update Details - The OTA update introduces seven major new features, including maps, off-board power supply mode, and split-screen functionality [1] - The update also optimizes over ten user experiences, including Bluetooth key, zero-motion space, and high-speed navigation assistance [1] Group 2: Off-board Power Supply Mode - The off-board power supply mode allows the vehicle to remain powered while the driver is outside, without locking the car [1] - The mode automatically exits when the battery level drops below 20% [1]

Core Viewpoint - The evolution of automotive intelligence is centered around data flow, which encompasses acquisition, storage, transmission, computation, and application to achieve smart driving and human interaction through sensory modalities [3]. Industry News - Tesla plans to launch autonomous taxi services in Austin, Texas, in June, starting with about 10 Model Y vehicles, monitored remotely for safety [14][15]. - Xiaomi officially launched the YU7 SUV, featuring standard laser radar, Thor computing platform, and panoramic display, set to hit the market in July [16]. - A new mandatory national standard for light vehicle automatic emergency braking systems is in the public consultation phase, expanding its applicability [15]. - RoboSense and Mammotion announced a strategic partnership to develop high-end robotic lawnmowers equipped with solid-state laser radar, aiming for 1.2 million units over three years [25]. - The 2026 Leap C10 model was launched, featuring Hesai ATX laser radar and a price range starting at 132,800 yuan [26]. High-Frequency Core Data Updates - As of March 2025, the penetration rate of 8MP cameras in passenger vehicles reached 23.8%, up 11 percentage points year-on-year [7]. - The penetration rate of L2 and above autonomous driving functions in passenger vehicles was 18.4% in March 2025, an increase of 4.3 percentage points year-on-year [9]. - The penetration rate of laser radar in passenger vehicles was 6.1% in March 2025, reflecting a year-on-year increase of 1 percentage point [8]. - The penetration rates for various sensors in March 2025 were 59.8% for front-view cameras, 47.2% for forward millimeter-wave radar, and 6.1% for laser radar [9]. - The penetration rate of OTA (Over-The-Air) updates in passenger vehicles was 74.5% in March 2025, showing a year-on-year increase of 3 percentage points [10]. Investment Suggestions - The automotive intelligence sector is witnessing significant advancements, with companies like Tesla, Xiaomi, and others leading the charge in smart driving technologies and features [2][4].