Source: Wind

New products from Huawei and Xiaomi accelerate the intelligence of the industry

December 1st,$BYD COMPANY (01211.HK)$According to the sales data for November this year, in November, BYD sold a total of 301,378 new energy passenger vehicles, a slight increase from October's sales volume. For the second month in a row, it exceeded 300,000, and the cumulative sales volume of new energy vehicles exceeded 6 million units.

On the part of the new car companies, the volume of deliveries in November generally increased month-on-month. november$Li Auto (LI.US)$The delivery volume was 41,030 vehicles, an increase of 173% and 2%, respectively, over the same period;$XPeng (XPEV.US)$The delivery volume was 20041 vehicles, with monthly deliveries exceeding 20,000 for 2 consecutive months, an increase of 245% and 0.2%, respectively; AITO's delivery volume was 1,8827 vehicles, up 128% and 48% from the same period, respectively; of these, the new Wenjie M7 delivered 15,242 new vehicles;$LEAPMOTOR (09863.HK)$The delivery volume was 18,508 vehicles, an increase of 130% and 2% respectively over the same period;$NIO Inc (NIO.US)$The delivery volume was 15,959 vehicles, +13% and -1%, respectively; the number of cars delivered was 12,506 vehicles, -17% and +3%, respectively; GAC Aian delivered 41,567 vehicles, +45% and +0.2%, respectively.

Debon Securities pointed out that the new forces are gradually launching and delivering a variety of high-quality new vehicles, and electric intelligence is being further accelerated.

What is noteworthy in the industry this year is that new products from Huawei and Xiaomi have arrived one after another. The new Wenjie M7, launched on September 12, is equipped with an ADS2.0 smart driving system; Chery Zhijie S7, launched on November 28, debuted with unmanned valet parking and the HarmonyOS4 Harmony system; the Xiaomi SU7, unveiled on November 15 at the Ministry of Industry and Information Technology's “Road Motor Vehicle Manufacturers and Products Notice” (377th batch). The first model is scheduled to sell 100,000 vehicles in the first year. The first model is scheduled to sell 100,000 vehicles in the next three years.

In response, Galaxy Securities said that the successive introduction of new products from Huawei and Xiaomi has driven smart cars into the fast track of development. As high-level intelligent driving technology gradually becomes commercialized, the weight of smart driving functions in consumers' car purchase decisions is gradually increasing. In addition to the traditional “price war” in the market, intelligence will become another core element of market competition.

What are the new changes in intelligent driving and electrification in the future

Looking at the supply side of intelligent driving, HUAWEI and Xiaopeng Wutu City NOA will be launched on a large scale nationwide by the end of the year.$Tesla (TSLA.US)$The FSD V12 end-to-end version will be released, Nvidia's autonomous driving team in China has expanded recruitment, Changan and Huawei have signed a memorandum of investment cooperation, and other car companies have also used intelligent driving as a core driving force to accelerate the construction of smart driving capabilities through their own research or seeking third party cooperation; on the demand side, benefiting from technological progress and expanding urban application scenarios, the optional ratio of Xiaopeng G6 and Wenjie M7 smart driving versions has exceeded expectations, and smart driving has gradually become an important influencing factor in car purchases.

Minsheng Securities believes that the era of “standard smart driving” has arrived, and that leading car companies that can identify differentiated selling points and are leading in intelligent driving technology will differentiate themselves from the fourth quarter of this year to 2025.

Looking ahead to 2024 in the automotive industry, in addition to changes in intelligent driving, Societe Generale Securities believes there will also be new changes in electrification. Independent high-end development is expected to bring significant flexibility to independent profits, and new changes in the pattern of OEMs will bring opportunities in industrial chains such as Tesla and Huawei. The agency expects the sales volume of new energy passenger vehicles to be 880.8 and 11.094 million units in 2023 and 2024, up 35.8% and 25.9% year on year, and the penetration rate of new energy is 33.8% and 39.8%. The rate of increase in penetration rates is slowing down, but electrification will usher in new structural opportunities.

(1). High-end plug-in hybrid drives autonomy in the higher price range. BYD D9, Ideal L Series, and Great Wall Tank, and rich bicycle profits in the high-end market will help the rise of independence from the “no increase in incremental profit” era to the “incremental and significant increase in profit” era; (2) “new” forces such as Huawei and Xiaomi rely on the brand appeal, channel ability, marketing ability, and ecological capacity accumulated in the mobile phone field, which is expected to bring about new changes in the vehicle pattern, thus bringing new opportunities in the industrial chain; (3) Tesla (3) It seems to be “weakening” in fierce competition, but overall sales volume and Industrial chain profit expectations are still very certain; (4) New technology dimensions, high-pressure fast charging is expected to enter a rapid volume cycle in 2024 after early introduction of basic products.

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