Guotai Junan: Maintaining a "Buy" rating on the automotive industry. The penetration rate of intelligent driving is expected to accelerate.

Guotai Junan Securities released a research report stating that it maintains a bullish rating on the automotive industry, and the penetration rate of intelligent driving is expected to accelerate. With leading enterprises like BYD Company Limited continuing to promote intelligent driving, the penetration rate of intelligent driving is expected to accelerate by 2025. The main points of Guotai Junan Securities are as follows: BYD Company Limited released the Tian Shen Zhi Yan C solution, which can achieve high-speed NOA and intelligent parking. BYD Company Limited held an intelligentization strategy conference on February 10th, where they released the Tian Shen Zhi Yan C intelligent driving solution. Tian Shen Zhi Yan C is a three-camera solution, equipped with 5 millimeter wave radars, 12 cameras (including front view 3 cameras), and 12 ultrasonic radars. In terms of functions, Tian Shen Zhi Yan C supports high-speed NOA and intelligent parking, achieving zero handover for 1000km of high-speed road sections, with a 99% success rate for parking in all scenarios. In addition, the Tian Shen Zhi Yan urban memory navigation function is expected to be developed and OTA by the end of 2025. All models of BYD Company Limited are equipped with Tian Shen Zhi Yan, with the first batch of 21 models launched, accelerating the realization of equal rights for intelligent driving. The first batch of 21 models of BYD Company Limited are all equipped with Tian Shen Zhi Yan, and the prices of intelligent driving models have been announced. Among them, models priced above 100,000 yuan will be fully equipped with advanced intelligent driving, including Qin L, Song Pro, second-generation Qin Plus EV, Yuan UP, Sea Lion 06DMi, Sea Lion 05DMi, Dolphin and 18 other models. The rate of high-level intelligent driving in models priced below 100,000 yuan will also significantly increase, including the second-generation Qin Plus DMi, Sea Lion 05DMi, Seagull, achieving the majority of high-level intelligent driving in models priced below 100,000 yuan and A00 mini cars. The cost of intelligent driving is declining, and the price range of intelligent driving vehicles is decreasing, making the penetration rate of intelligent driving expected to continue to rise. With the push from BYD Company Limited and other car companies, the increase in sales volume of intelligent driving models is expected to continuously lower the prices of relevant sensing and computing hardware. Technological advancements such as DeepSeek help reduce the reliance on computing power and the demand for data, which is expected to further lower the entry barrier for intelligent driving and accelerate the iteration speed of intelligent driving solutions. On the car company side, BYD Company Limited announced that its Core Architecture will fully integrate with DeepSeek's large models, empowering both on-board AI and cloud AI. In addition, GEELY AUTO, LEAPMOTOR, Dongfeng Group's independent brands, and Baojun Auto have also announced progress in integration or adoption with DeepSeek. Risk warning: The speed of intelligent driving landing is slower than expected, and price wars may negatively impact the sales of car companies.