CITIC SEC stated on April 28 that the Ministry of Industry and Information Technology released the key points for standardizing Autos by 2025, which emphasized the need to strengthen the standards supply for intelligent connected vehicles such as driving assistance and autonomous driving. Previously, the Ministry held a closed-door meeting to further regulate the promotion, release, testing, and OTA upgrades activities of Industry Chain companies for driving assistance.

The report mentioned that safety will become an important selling point for driving assistance, and Lidar is expected to gradually become a standard product. Starting in 2023, OEMs will accelerate the deployment of L2 level combined driving assistance functions. Compared to visual solutions, Lidar has stronger identification capabilities at night, higher identification accuracy, and can recognize more obstacles, which can enhance the robustness and safety of related functions. Although Lidar has previously been more a premium feature for mid-to-high priced models in the Industry, the report believes that after this round of regulation, safety will become an important selling point for L2 level intelligent driving, and Lidar, as a safety net Sensor, is expected to accelerate its penetration.

The report believes that Industry Chain companies are likely to focus on improving product maturity and safety: 1) In terms of resource investment, it is expected that OEMs will further converge software and Hardware architectures to ensure product maturity and accelerate data collection; 2) In terms of technological evolution, Lidar, which can enhance system robustness, is expected to accelerate penetration, and L3 level conditional autonomous driving with clear functional boundaries and safety responsibility division is also expected to receive more resource input. Key recommendations are made for leading companies in the intelligent driving Industry.