Soochow: By 2025, it is expected to become the first year of domestic L3 auto-driving, and will comprehensively move towards advanced intelligent driving technology.

Soochow released a research report stating that by 2025, it is expected to become the first year for domestic L3 autonomous driving, with multiple car companies announcing smart driving-related news. Deepseek has also opened up avenues to improve computing power utilization, with the potential to reduce cloud-based large model training costs and further advance mid-level autonomous driving. With the increasing penetration rate of mid-to-high-level autonomous driving, leading autonomous driving car manufacturers and companies in the industry chain are expected to benefit. It is recommended to focus on domain controllers such as NavInfo Co., Ltd. (002405.SZ) and Wuhan Kotei Informatics (301221.SZ), as well as algorithms such as Thunder Software Technology (300496.SZ) and ArcSoft Corporation (688088.SH). Some of the key points highlighted by Soochow include: - 2025 is expected to be the year for domestic L3 autonomous driving - In December 2024, Tesla released the FSDV13.2 update, achieving an end-to-end driving mode from parking space to parking space. Currently, domestic companies such as Hongmeng Zhixing, Xiaopeng, and IDEAL have already pushed out end-to-end large model updates for autonomous driving. Prof. Zhu Xichan, Director of the Institute of Automotive Safety Technology at Tongji University, predicts that the Ministry of Industry and Information Technology (MIIT) will issue certification for L3 level autonomous driving vehicles by 2025. Currently, JAHE and Huawei's collaborative Jianyi S800 has applied for MIIT certification, and once certified, it will push L3 autonomous driving functions to Jianyi users. Recently, the CEO of IDEAL stated that IDEAL is expected to achieve L3 intelligent driving by 2025, making 2025 the year for L3 autonomous driving. - Mid-level autonomous driving is expected to become standard equipment for cars priced at around 100,000 RMB - BYD Company Limited announced in 2025 that the high-level autonomous driving system "Tianshen's Eye" will be available in all cars above 100,000 RMB, and most cars below 100,000 RMB will also have it. This includes features such as valet parking, remote control, and automatic parking being standard. According to statistics from Gaudi Automotive Research Institute, from January to November 2024, the penetration rates of High-speed NOA and City NOA in the domestic passenger car market were only 7.2% and 1.5%, with the production scale of NOA expected to significantly increase in 2025. - Deepseek is expected to accelerate the "democratization of autonomous driving" - With the help of Deepseek's models and algorithm optimization technology, the computing power required at the car end is expected to decrease, thereby reducing the deployment costs of autonomous driving chips in cars. In addition, Deepseek has also opened pathways to improve computing power utilization, with the potential to reduce the costs of cloud-based large model training, further advancing mid-level autonomous driving. Risk warning: Technological development and policy promotion may not meet expectations.