Soochow: The new generation of intelligent driving architecture is being implemented, continuing to have confidence in the trend of intelligence.

Soochow released a research report stating that 2025 will be a turning point for automotive intelligence. The popularization of urban NOA (L3 intelligent core experience) is the driving force behind intelligence becoming one of the top three factors considered by consumers when purchasing a car. Currently, based on the system of "leading car companies' new car cycle - terminal grassroots research - popular model verification," the "L3 intelligent penetration rate" will be closely tracked from 10% to 50% to 80%+ in the years 2025-2027. The future of the automotive industry may be divided into three types of companies: B-side Robotaxi operation + C-side personalized brand + whole vehicle high-end manufacturing. It is recommended to pay attention to VLA/next-generation intelligent driving architecture, penetration rate, and willingness to pay. Soochow's main points are as follows: Why recommend going all in on automotive intelligence? 1) Automotive intelligence is essentially a revolution in transportation. The trilogy of automotive intelligence is "L3 intelligence helps car companies sell cars - L4 Robotaxi achieves car companies' software charges - independent brands achieve global rise." 2) 2025 is a turning point for automotive intelligence! The popularization of urban NOA (L3 intelligent core experience) is the driving force behind intelligence becoming one of the top three factors considered by consumers when purchasing a car. Currently, based on the system of "leading car companies' new car cycle - terminal grassroots research - popular model verification," the "L3 intelligent penetration rate" will be closely tracked from 10% to 50% to 80%+ in the years 2025-2027. 3) Automotive intelligence is a knockout competition, where the strong will become stronger. The future of the automotive industry may be divided into three types of companies: B-side Robotaxi operation + C-side personalized brand + whole vehicle high-end manufacturing. Components may be divided into two types of companies: modular suppliers + single category suppliers. August Intelligent Summary: Keywords may include demonstration of the effect of the iteration of the new generation basic architecture 1) Regarding VLA/next-generation intelligent driving architecture: On August 20th, the new generation VLA intelligent driving architecture of Ideal was synchronously installed with i8 delivery, initially promoted as the VLA Preview version, capable of implementing three-point turnaround ability by thinking in chains; on August 27th, Xiaopeng P7 was released, with the entire Ultra version achieving VLA+VLM intelligent driving, equipped with 3 Turing self-developed chips, and the effective computational power on the vehicle reached 2250 TOPS; Yuanrong Qixing took the lead in opening up to third-party intelligent driving suppliers VLA solutions, possibly down to the 10,000 yuan level. 2) Regarding penetration rate and willingness to pay: In July, the intelligent penetration rate of urban NOA reached 23.2%, up 0.9% month-on-month, maintaining a good level. Wanjie M8 is equipped with urban NCA as standard across the board, and deliveries continue to increase; Xiaopeng MONA M03 Max accelerates the supply side of intelligent driving, with Xiaopeng's intelligent penetration rate exceeding 70%; the overall urban NOA intelligent driving penetration rate of Ideal is 59.4%, down 2.2% month-on-month, showing a slight decline. Stock selection of automotive intelligence main line in 2025 Continue to be optimistic about intelligent whole vehicles! Intelligence is the core, with the new car cycle/monthly sales being the implemented tracking, and Siasun Robot&Automation layout is the icing on the cake! Hong Kong stocks > A shares. Hong Kong stocks (XPENG-W (09868) + LI AUTO-W (02015) + XIAOMI-W (01810) etc.) / A shares (BYD Company Limited (002594.SZ) + SAIC Motor Corporation (600104.SH) + Chongqing Sokon Industry Group Stock (601127.SH) etc.). Optimistic about incremental intelligent components: AI chips (HORIZONROBOT-W (09660) + BLACK SESAME (02533)), domain controllers (Huizhou Desay SV Automotive (002920.SZ) + Foryou Corporation (002906.SZ) + Ningbo Joyson Electronic Corp.(600699.SH) + IMOTIONTECH (01274) etc.). Wire-controlled chassis (Bethel Automotive Safety Systems (603596.SH) + NEXTEER (01316), automotive electronics (Shanghai Baolong Automotive Corporation (603197.SH) + Jiangweihengrun (688326.SH) etc.). Risk Warning Passenger car price wars exceed expectations; terminal demand recovery is lower than expected; the pace of L3-level automatic driving policy introduction is slower than expected.