Soochow: 2025 is expected to become the first year of domestic L3 on-board, and will comprehensively move towards high-end intelligent driving.

Soochow released a research report stating that by 2025, it is expected to become the first year for Level 3 autonomous driving in China, with multiple car companies announcing news related to smart driving. Deepseek has also opened up new ideas for improving computing power utilization, which may reduce the cost of cloud-based large model training and further promote the decentralization of mid-level autonomous driving. As the penetration rate of mid- to high-level autonomous driving increases, leading autonomous driving car manufacturers and related companies are expected to benefit: recommended focus on domain control: NavInfo Co., Ltd. (002405.SZ), Wuhan Kotei Informatics (301221.SZ); algorithms: Thunder Software Technology (300496.SZ), ArcSoft Corporation (688088.SH). Key points from Soochow: 2025 is expected to be the first year for Level 3 autonomous driving in China In December 2024, Tesla released the FSDV13.2 update, achieving end-to-end driving mode from parking space to parking space. Currently, domestic companies such as Hongmeng Zhixing, Xiaopeng, and Ideal have all released end-to-end large model updates for autonomous driving. Zhu Xichan, a professor at Tongji University's Automotive Engineering Institute and director of the Automotive Safety Technology Research Institute, predicts that the Ministry of Industry and Information Technology will issue certifications for Level 3 autonomous vehicles in 2025. Currently, the jointly developed Zun Jie S800 by Jianghuai and Huawei is in the process of applying for the certification from the Ministry of Industry and Information Technology, and once certified, it will push for L3 autonomous driving functions to Zun Jie users. Recently, the Ideal CEO stated that Ideal is expected to achieve Level 3 intelligent driving in 2025, making 2025 the first year for Level 3 autonomous driving. Mid-range autonomous driving is expected to become standard equipment for vehicles priced at around 100,000 RMB In 2025, BYD Company Limited announced that the Tian Shen Zhi Yan high-level autonomous driving system will be equipped on all models priced above 100,000 RMB under BYD Company Limited, with most models priced below 100,000 RMB also getting the system. This includes standard features such as valet parking, remote driving, and automatic parking. According to data from the Gaishi Automobile Research Institute, as of January to November 2024, the penetration rates of high-speed NOA and urban NOA in China's passenger car market were only 7.2% and 1.5%, respectively. In 2025, the production scale of NOA is expected to increase significantly. Deepseek is expected to accelerate the promotion of "autonomous driving parity" With the help of Deepseek's model and algorithm optimization technology, the computing power demand at the vehicle end is expected to decrease, thus reducing the deployment cost of autonomous driving chips in vehicles. Additionally, Deepseek has opened up ideas for improving computing power utilization, which may lower the cost of cloud-based large model training and further promote the decentralization of mid-range autonomous driving. Risk warning: Technological development and policy promotion may not meet expectations.