BYD will hold a smart strategy conference at its headquarters in Shenzhen on February 10 (Monday) at 19:30. As a leading player in the new energy vehicle sector, the launch of BYD's smart driving system is widely seen as a move to enhance market confidence across the entire new energy vehicle segment, with related areas such as smart driving, lithium batteries, and semiconductors expected to benefit.

Multiple institutions analyze that BYD's smart strategy may drive the transformation of China's automotive industry from "electrification" to "intelligentization." The system is expected to officially launch by the end of 2024, achieving nationwide navigation functionality in cities without maps, marking the popularization of smart driving technology.

Market's Advance Reaction

The upcoming launch of BYD's "Tianshen Eye" smart driving system has already led to a rise in stock prices. Citic Securities believes this move is significant, predicting that by 2025, BYD will enter a major development cycle for smart vehicle models, with a substantial increase in the penetration rate of smart driving technology. The firm notes that BYD has essentially formed a product hierarchy consisting of high-end, mid-range, and affordable models, and the introduction of the smart driving system will significantly enhance its competitiveness in the new energy vehicle market, with expectations of considerable long-term growth.

Kong Yuan Securities indicates that BYD's "Tianshen Eye" system (BAS 3.0+) has entered the industry’s top tier, and the company's in-house R&D capabilities combined with economies of scale may reduce smart driving costs, thereby solidifying its competitive advantage in the mainstream price segment. Minsheng Securities also states that as smart driving technology becomes more prevalent by 2025, BYD will further consolidate its industry position through technological innovation, with models priced between 100,000 to 150,000 yuan expected to adopt smart driving systems, enhancing market competitiveness.

Market reactions were evident two days before the conference. Data shows that on February 6, BYD's A-shares hit the daily limit, closing at 311.08 yuan, surpassing the 300 yuan mark and reaching a three-month high; the company's market value increased by 82.2 billion yuan that day, also boosting shares of smart driving concept stocks collectively. In the Hong Kong market, BYD's shares rose over 10%. On February 7, Hong Kong shares increased by another 4.5%, closing at 330 HKD, marking a cumulative rise of 20.88% for the week. Additionally, the smart car ETF fund rose by 11.9% last week, indicating strong market interest in the smart driving sector.

Impact on the Sector

From an industry perspective, the popularization of smart driving will significantly increase the demand for high-performance chips and computing platforms, particularly benefiting automotive-grade chips. Huasan Securities points out that 2025 will be the stage for the widespread adoption of basic smart driving experiences, with investment focus on the market recognition of smart driving labels, which will boost vehicle sales and stimulate consumer purchasing intentions, while also driving sensor demand growth.

Minsheng Securities notes that the era of intelligentization has arrived, and the output of independent technology will create new opportunities, with intelligent capabilities becoming a crucial factor in automotive competition. Smart driving is gradually approaching a triple inflection point of technology, user acceptance, and business models, with a broadly optimistic market outlook.

Dongwu Securities emphasizes that intelligentization is the core track of the future automotive industry, and BYD's smart driving penetration plan will drive demand for sensors and domain controllers, suggesting a focus on industries related to Huawei and humanoid robots. Kong Yuan Securities believes that high-level smart driving is likely to accelerate its penetration, with Tesla's FSD entering the Chinese market potentially triggering a "catfish effect," prompting leading companies, including BYD, to accelerate technological advancements.

Moreover, according to reports from Economic Observer, as of February 5, 2025, the global automotive sales rankings for 2024 have been released, with BYD ranking fifth globally with 4.27 million vehicles sold, rising four places from last year and setting a new sales record for Chinese automotive brands worldwide. This achievement further underscores BYD's competitiveness and influence in the global automotive market.

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（Source: uSMART HK）