According to the Zhongtong Finance APP, on July 3rd, Ministry of industry and information technology and other five departments announced the list of pilot cities for the "vehicle-road cloud integration" application of intelligent connected vehicles. The pilot cities include Beijing, Shanghai, Chongqing, Inner Mongolia Erdos Resources, Shenyang, Changchun, Nanjing, Suzhou, Wuxi, Hangzhou-Tongxiang-Deqing joint, Hefei, Fuzhou, Jinan, Wuhan, Shiyan, Changsha, Guangzhou, Shenzhen, Haikou-Sanya-Qionghai joint, and Chengdu, 20 cities in total.
At present, the country has built 17 national intelligent connected vehicle testing areas, 7 vehicle networking pilot zones, and 16 "dual-intelligence" pilot cities. Over 32,000 kilometers of test roads have been opened, more than 7,700 test licenses have been issued, and over 120 million kilometers have been tested. More than 8,700 sets of intelligent road side units (RSU) have been deployed, and many places have carried out cloud-based infrastructure platform construction.
However, the construction of "vehicle-road cloud integration" in various places is still in the primary stage, and a complete system architecture has not yet been established. There is a "fragmentation" phenomenon in the construction of infrastructure, which makes it difficult to support the large-scale application of autonomous driving technology and vehicle networking functions.
There are four expected results for this pilot: the construction of a low-latency, high-reliability networked cloud control infrastructure, promotion of large-scale application of autonomous driving in multiple scenarios, exploration of the new business model of "vehicle-road cloud integration" investment and operation, and the formation of a unified standard and testing evaluation system.
After the pilot cities are determined, related projects are expected to be tendered. On January 15, the Ministry of industry and information technology and other five departments jointly issued a notice to carry out the pilot work of "vehicle-road cloud integration" application of intelligent connected vehicles, with a pilot period from 2024 to 2026. Before the announcement of the pilot cities list, pilot cities such as Beijing, Wuhan, and Fuzhou have already started related project bids.
Since June, many places have launched vehicle-road cloud integration demonstration projects. Beijing's nearly 10 billion vehicle-road cloud integration project, Wuhan's vehicle-road cloud integration project has reached 17 billion, Fuzhou, Inner Mongolia Erdos Resources, Shenyang, Hangzhou and other cities have also launched related project bidding work. After the pilot cities are determined, it is expected to promote the development of China's vehicle-road cloud integration, and the construction of related city projects is expected to accelerate.
Guotai Junan research report pointed out that vehicle-road coordination is an important form of new quality productivity in the field of transportation and is also a direction that can be quickly implemented. At present, vehicle-road coordination has ended small-scale tests and is about to enter the explosive growth stage from 1 to N.
Orient Securities pointed out that the construction project of "vehicle-road cloud integration" not only can promote the commercialization process of autonomous driving, but also empower various aspects such as smart transportation and safety travel. It has become a direction supported by the Chinese government and a key development direction. The early construction and long-term operation of vehicle-road cloud integration involves a wide range, and many smart transportation-related companies related to road, vehicle, cloud, and road intelligence operation are expected to benefit.
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BYD Company Limited (01211): BYD has a team of 90,000 engineers and a research and development team of more than 4,000 smart driving experts. The company has made significant investments in chips, algorithms, perception, and other areas. The company will launch a batch of models in the second half of this year to accelerate the promotion of intelligence. With the promotion of intelligence, it is expected that the sales volume of BYD's high-end brands, including Tang, Qin, and Han, will continue to grow.
XPeng auto (09868): XPeng's new model Mona is expected to debut, positioning in the A-class car market, relying on XPeng's self-developed intelligent driving technology to enable high-end intelligent driving functions in the price range of 100,000 to 150,000 yuan, differentiated product competitiveness will help brand sales and momentum breakthrough.
Zhihang Automotive Technology (01274): The company is a leading provider of autonomous driving solutions in China and has established partnerships with many well-known auto manufacturers such as Great Wall, Chery, Dongfeng, etc. Citi noted the strong order trend of Zhihang Automotive Technology, especially the strong order volume of traditional partner JiKe and the increase in sales from award-winning safety design. It is expected that 2024 will be the turning point for Zhihang Automotive Technology to turn losses into profits, and it is expected to achieve a net income of 500 million yuan in 2026.
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