The automotive landscape is undergoing a dramatic transformation, and at the center of this evolution is BYD, a Chinese electric vehicle manufacturer that has recently made headlines with its ambitious strategy to democratize advanced driving technologiesOnce considered the crowning jewels of luxury automobile brands, high-level driving assistance systems are now becoming standard fare among mainstream models, largely thanks to BYD's initiatives.

On the evening of February 10, BYD held a pivotal press conference to unveil its intelligent driving strategy, showcasing an impressive lineup of 21 new car models that will feature the “Eye of God” advanced driver assistance systemNotably, this system will be included as a standard feature in all vehicles priced over 100,000 yuan, making cutting-edge technology accessible to a broader audience.

In his inspiring address, Wang Chuanfu, the Chairman of BYD, dropped a strong prediction: by 2025, the intelligence of a car will be a defining factor for buyersHe emphasized that over the next two to three years, intelligent driving will become an indispensable feature for consumersThis stark shift represents a democratization of technology, bringing the benefits of advanced driving systems from the realm of luxury vehicles into the hands of the mass market.

Industry insiders have noted that BYD's rapid advancements have taken many by surpriseWhile other manufacturers are still planning to deploy their high-speed No-Obstruction Assist (NOA) solutions by 2026, BYD has accelerated its timeline, igniting an intense race for supremacy in the automotive sector this yearThe unveiling of such ambitious features has reflected positively in the stock market, with BYD’s stock reaching its limit-up threshold following the event, climbing over 16.7% in just three trading days, and boosting its market capitalization to over 960 billion yuan.

As the industry gears up for a year of fierce competition regarding smart vehicle capabilities and implementation costs, BYD's dual advantage in electric vehicle technology and intelligent systems could help it capture the hearts and minds of mainstream consumers

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The company’s goal is not just to join the race but to lead it, setting its sights on taking on established players like Tesla, thereby positioning intelligent driving as its core competence and elevating its market valuation.

Over the coming months, BYD is expected to unveil even more significant advancements in intelligent drivingThe company aims to compete with industry giants such as Volkswagen, sparking a countdown to a battle between old and new paradigms in the automotive world.

In the past few years, BYD has successfully maintained a competitive edge in the fierce pricing wars of the automotive market with such models as the Champion Edition and Honor EditionHowever, as the electrification phase nears its conclusion, challenges have arisen, particularly from other companies like Geely that are launching performance-driven products that pose a strong threat to BYD’s market share.

Herein lies the opportunity for BYD: intelligent driving could be the key to surmounting current developmental bottlenecksA noteworthy highlight from the recent press conference was the introduction of the “Eye of God” advanced driver assistance system, which is now available for vehicles in the 100,000-150,000 yuan segmentFor instance, the introductory model of the Seagull comes in at 70,000 yuan, significantly lowering the entry barriers for high-level driving features.

The “Eye of God” system is categorized into three levels: A, B, and CThe model A utilizes a triple laser setup and is primarily featured in the Yangwang brand, while the B model, which includes a laser version, is installed in the Tengshi and BYD brandsThe C model, designed with a three-eye configuration, is mainly found in BYD vehicles.

Most models priced below 100,000 yuan will also be equipped with the Eye of God system, enabling high-speed navigation capabilities across the country with zero driver intervention for up to 1,000 kilometersThe system boasts obstacle avoidance speeds of 120 km/h and supports full scene parking, including remote and valet parking functionalities.

Several popular models, such as the second-generation Qin PLUS DM-i and the Seal 05 DM-i, will come equipped with this advanced driving assistance system, thus ensuring extensive coverage across BYD's product range.

Industry analysts have pointed out that the overall functionalities of high-speed NOA have reached a level of maturity, with costs dropping below 5,000 yuan and potentially falling as low as 2,000 yuan

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However, the cost of urban NOA remains at about 8,000 yuan, making this a crucial area for future development among manufacturers.

Yang Dongsheng, the director of BYD's Automotive New Technology Research Institute, announced that BYD's sensors hold significant advantagesThe Eye of God version C employs the globally unique "triple front-facing" 5R12V12U strategy, consisting of three front cameras, five surrounding cameras, four panoramic cameras, plus five millimeter-wave radars and twelve ultrasonic radars.

Moreover, Yang emphasized another strategic advantage for BYD lies in its sophisticated data usageBy leveraging VLM data to extract "golden data," BYD anticipates reaching a new daily training mileage record of 72 million kilometers in 2024, with model iteration speeds of every seven daysBy the end of 2025, this figure is expected to further increase to 150 million kilometers daily.

An executive from a rising automotive firm noted that BYD’s model iteration speed is approaching that of other advanced players in the field, suggesting that with technologies like DeepSeek and optimization techniques, BYD’s speed in model updates could increase while reducing hardware and software costs.

During the press conference, Yang announced that the “Xuanji Architecture” will fully integrate with DeepSeek, forming a dual-cycle interaction between vehicle AI and cloud computingHe noted that even vague consumer demands can be precisely addressed through computational resources, enhancing user experience through technology.

Forecasts from Citic Securities suggest that BYD's affordable autonomous driving solutions will create a new competitive landscape in the electric vehicle sector, with predictions indicating that by 2025, the market penetration rate for level 2 and above autonomous driving technologies will reach approximately 40%, while internal expectations at BYD estimate a figure above 2 million vehicles.

The stage is set for a climactic showdown in intelligent driving technologies, with BYD firmly throwing its hat into the ring

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Consumers are now prioritizing intelligent driving systems as a primary consideration when purchasing vehicles, prompting manufacturers to strategically position themselves in the marketplace.

Since last year, products such as the Xpeng MONA M03 have taken the market by storm, easing advanced driving systems into the 150,000 yuan segment, emerging as major hits in the latter half of the yearSimilarly, Huawei’s Qian Kun intelligent driving technology has extended its reach from the luxury realm of the 1 million yuan Qian Kun S800 down to the more accessible 200,000 yuan segment with Changan Shenlan.

With this competitive backdrop in mind, the 2024 battleground for advanced intelligent driving is projected to establish itself primarily within the 200,000 yuan rangeBy 2025, we can expect a drastic reduction of market entry barriers towards the 100,000-150,000 yuan threshold, which represents BYD's home turf over the past few years.

Wang Chuanfu has claimed that in the 100,000 to 200,000 yuan range, BYD holds the strategic advantage in terms of air superiority and pricing powerHowever, the ongoing intense price wars have begun to erode BYD's electrification advantagesAccording to Huachuang Securities, in the third quarter of last year, BYD’s average vehicle price fell to 139,000 yuan, a year-on-year decline of 14,000 yuan, alongside a decrease in net profit per vehicle.

Fortunately, the rollout of new products featuring BYD’s DM5.0 hybrid technology has seen a positive trend in related data, indicating that solid core technologies continue to attract consumer interest, helping to drive sales positively.

Another reality is that for the past year, the intelligent driving sector has primarily been dominated by the Huawei ecosystem as well as emerging powerhouses, such as Weilai (NIO) and XiaopengTraditional automakers like BYD have struggled to assert their authorityFollowing a temporary market capitalization surge above 1 trillion yuan three years ago, BYD has been unable to regain that level, underscoring the market's cautious approach toward its future growth potential.

In light of these challenges, Wang addressed concerns during the launch regarding the perception that BYD does not prioritize smart driving, clarifying that this view is misleading

He asserted that BYD's strategy has always been to create while speaking less, having identified electrification as the first half of the automotive evolution and intelligent driving as the second half back in 2018.

As we progress into 2025, BYD is grappling with the question of how to navigate these competitive dynamics and maintain its position, setting its focus on securing market share from traditional fuel-powered vehicles before shifting gears to contend with new power players in intelligent driving.

Since early last year, Wang has championed a massive investment of 100 billion yuan aimed at comprehensively enhancing vehicle intelligence and securing future technological expressionThis ambitious pathway has resulted in accelerated momentum for BYD, allowing over 200,000 yuan models to offer optional high-level driving systems, leading to the latest announcement that all of BYD's models will be outfitted with the “Eye of God” system.

Industry analysts foresee that BYD's initiatives will ignite explosive growth within the automotive intelligent driving supply chain, prompting a wave of domestic and joint-venture brands to follow suit in the mainstream market.

As BYD leads the charge, expectations are that the market for L2+ level vehicles will swiftly grow from 1 million to 10 million, with penetration rates for L2+ technologies rising from 14% to 30%.

According to Gong Min, the head of UBS's China automotive sector research, the outlook remains optimistic regarding Chinese car manufacturers in the realm of smart innovationHe anticipates that traditional automakers will further collaborate with AI companies to push their offerings into the realm of digitally assisted driving.

The shift towards intelligent systems is driving a significant reshaping of the automotive sectorThe lines between automotive manufacturing and the fields of AI and intelligent systems are blurring, as firms like Li Auto and Xpeng also aspire to position automotive AI as a core element of their business philosophies

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