As the automotive industry's landscape continues to shift rapidly, BYD, the unprecedented sales champion, is causing significant waves at the start of the yearIn 2023, the company proposed a revolutionary concept: electric vehicles (EVs) priced the same as their gasoline counterparts, and by 2024, they’ve raised the stakes with the promise of making electric vehicles cheaper than gasoline onesLooking ahead to 2025, BYD aims to realize "intelligent driving equity," effectively pushing the competition in the realm of automotive intelligence to new heights.

On February 6, BYD announced its plans to hold a strategic meeting regarding this intelligent initiative just four days later, stating that "intelligent driving equity" is achievableThe response from the financial market was swift; starting on the 6th of February, BYD's stock soared, closing that day with a 10% increaseIn the following six trading days, share prices rose dramatically from 282 yuan to 341 yuan by February 13.

During the release event, BYD unveiled ground-breaking news: all 21 of its vehicle models will be equipped with advanced driving capabilitiesThis announcement signals that every vehicle under BYD’s main brands—Dynasty and Ocean—ranging from the budget-friendly 78,800 yuan Seagull to the premium 249,800 yuan Song L EV, will have intelligent driving capabilities by the end of the yearAdditionally, BYD’s sub-brands, such as Tengshi, Fangchengbao, and Yangwang, will also join this lineup with their advanced driving features.

Statistical data reveals that only the entry-level models, such as the Seagull and the Qin/Seabed 05 DM-i, will lack high-level driving configurations, meaning that nearly 90% of BYD's offerings will be equipped with advanced driving functionalitiesChairman Wang Chuanfu emphasized that models without intelligent driving features will soon become the exception, illustrating the company's commitment to transforming the market dynamics.

The impact of this "intelligent driving equity" initiative is expected to be substantial

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Research from the Gao Gong Intelligent Automobile Research Institute indicated that vehicles priced between 100,000 to 200,000 yuan accounted for nearly half of the market share last year, but only 1.31% of those models were equipped with high-speed driving assistanceRemarkably, BYD’s new energy vehicle sales represented almost 30% of the total market in China in the previous year.

Analysts have projected that BYD’s overall sales could reach 5.5 million units this year; if 90% of those are equipped with advanced driving systems, the penetration rate for high-speed driving assistance among China’s new energy vehicles is set for dramatic growthFurthermore, BYD led the industry with 1.356 million sets of Level 2 Advanced Driver-Assistance Systems (ADAS), overshadowing rivals like Ideal Auto and Geely, which reported 500,000 and 400,000 sets respectively.

This comprehensive integration of advanced driving capabilities is anticipated to elevate these figures even furtherReports from CITIC Securities suggest that BYD's entry into this market segment could accelerate the sales of L2+ driving vehicles from just 1 million to upwards of 10 million units, increasing the penetration rate of L2+ systems from 14% to 30%.

Perhaps the most eye-catching facet of BYD’s announcement is the promise of "upgrades without increased costs." Reports indicate that among the 21 upgraded models, with the exception of the base model Han DM-i experiencing a modest price hike of 3,000 yuan, the Seagull’s non-intelligent version saw a price drop while most models retained their original price following the technology upgrade.

BYD’s latest intelligent driving proposal, dubbed "Tiangshen’s Eye," is an upgrade from a similar plan introduced in 2023, with three tiers based on vehicle pricingThe top-tier Tiangshen’s Eye A features three laser radars and dual OrinX chips with computing powers of 508 TOPS, currently exclusive to the Yangwang series

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The mid-level Tiangshen’s Eye B, on the other hand, includes 1-2 laser radars and a single OrinX chip with 254 TOPS, supporting urban Navigation On Autopilot (NOA) capabilities, and will be incorporated into Tengshi and models priced above 200,000 yuanThe more affordable Tiangshen’s Eye C, leveraging a visual system without laser radars, utilizes five millimeter-wave radars and twelve cameras and supports high-speed NOA functionalities.

It is essential to note that the basic intelligent driving functions provided by the entry-level Tiangshen’s Eye C currently support leading driving on highways and rapid roads, but the hardware is designed for future upgrades to urban navigation and even higher-tier intelligent driving modes, appealing to current industry trends for sophisticated driving technologies.

Meanwhile, the introduction of BYD’s intelligent driving equity program has not been without controversiesLong-standing perceptions view high-level driving assistance systems as luxury features limited to expensive vehiclesAs seen previously, Xpeng Automotive had already pushed the boundaries by offering advanced driving capabilities in a model starting at 110,000 yuan, ramping up competition among new energy vehiclesTheir endeavors culminated in significant monthly sales surpassing 30,000 units.

BYD's move further breaks traditional barriers, bringing high-level intelligent driving systems into cheaper models priced below 200,000 yuan, down to as low as 78,800 yuanThis feat cannot be detached from BYD's current cost management strategies.

Evidence suggests that the minimum cost for the Tiangshen’s Eye C configuration exceeds 4,000 yuan when factored with Nvidia’s Orin N driving chipHowever, if domestically-produced chips are utilized in the future, costs may decline furtherReports indicate that BYD is on track to debut its self-developed driving chips sometime in the first half of this year, with expectations to begin integrating them into vehicles next year.

Moreover, BYD has already mastered the production capabilities for less advanced hardware components such as millimeter-wave radars and ultrasonic sensors

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This in-house production could serve as a vital asset for cost control, positioning BYD favorably in market competition.

The implications of BYD’s strategic revelations were not lost on the market; following the release event, shares of Xpeng Motors dipped in Hong Kong, falling by 9% by February 11, while competitors such as Geely, Leap Motor, Ideal, and Great Wall also experienced significant declines in their stock prices, exceeding 5%, with Geely’s shares plunging over 10%.

BYD’s intelligent driving equity initiative has notably stirred the Chinese automotive market, compelling other manufacturers to hasten their development and deployment of intelligent driving technologies in response to shifts in the competitive landscape.

However, amidst the excitement, not all voices are satisfiedComplaints from existing BYD vehicle owners surfaced on several platforms, expressing grievances about the newly upgraded features offered without price increases, particularly among consumers who purchased their vehicles within the last six monthsSome owners lamented a lack of transparency concerning potential upgrades when they made their purchases, feeling shortchanged as they now face constraints that deny them access to the advanced driving technologies for the same amount of money.

Such occurrences are not unique to BYD; they are commonplace during phases of technological transformation in the industryFor instance, the launch of the updated AITO M7 at the end of 2023 featured higher driving configurations than its predecessorsHowever, within months, the M7 underwent another overhaul with a novel exterior and a more competitively priced version, prompting further dissatisfaction among early adopters.

Given the rapid technological advancements and frequent upgrades in the new energy vehicle sector, these instances of consumer frustration are becoming increasingly common and anticipated within the industryExperts suggest that consumers should develop reasonable expectations when making purchases, acknowledging that technological innovations are inevitable.

The fallout from BYD’s revolutionary plans does not end there

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