CITIC Securities: It is expected that L3 will become the main upgrade direction for autonomous driving from the fourth quarter of 2025 to 2026.

CITIC Securities research report indicates that regulatory authorities have increased their focus on the safety of autonomous driving, with stricter regulatory requirements for L2 level assisted driving from promotion to actual operation. In this context, it is expected that L3 will become the main direction for the upgrade of autonomous driving from the fourth quarter of 2025 to 2026. L3 commercial solutions have higher requirements for system safety redundancy, which is expected to significantly increase the value of autonomous driving chips, domain controllers, LiDAR and mmWave sensors, vehicle-mounted SerDes, and low-voltage power supplies per vehicle, bringing about a new wave of investment opportunities.