On February 13, according to the Financial Association (Editor: Shen Chao), following the Market Cap returning to a trillion, $BYD Company Limited (002594.SZ)$ the A-shares today reached a historic high in stock price. Over the past eight trading days, it has accumulated a rise of 30%; Hong Kong stocks $BYD COMPANY (01211.HK)$ rose over 7% and also set a new high.

It is worth noting that BYD's A-share market cap has once again reached one trillion, nearly two and a half years have passed since it first broke the one trillion market cap in June 2022. With the powerful empowerment of the "Q&M Dental" strategy, this time, the "King Di" returns to glory, with the potential to reshape the competitive landscape of the industry.

"Q&M Dental" empowers BYD's market cap to return to one trillion, what is different this time?

In June 2022, BYD's A-share market cap first broke one trillion. At that time, BYD had just announced an all-in approach to New Energy, with the blade battery and DM-i super hybrid system in large-scale mass production, helping monthly sales continue to exceed 0.1 million vehicles. The market highly recognized BYD's scale expansion and technological advantages in the field of Electric Vehicles, with rapid sales growth and continuous increase in market share, driving a significant rise in market cap.

After two and a half years, BYD returned to a market cap of one trillion. The stepping stone was to integrate advanced intelligent driving features into new energy vehicles priced as low as 0.07 million yuan. On February 10, BYD announced its Q&M Dental's Global Strategy, releasing over 20 models equipped with the "Eye of God" advanced driving system all at once. Among them, the BYD Seagull, priced at 0.0788 million yuan, has become the king of advanced driving in the auto market, featuring functions like highway navigation NOA and automatic parking for under 0.1 million yuan. This announcement of the Q&M Dental's Global Strategy further solidified BYD's image as a technological leader in the Electric Vehicles sector and attracted more investor attention and favor.

What is the impact on the industry? The halo of a trillion market cap not only further enhances BYD's brand image and visibility, but as a leading enterprise in the New Energy Vehicle industry, BYD's successful layout in the field of intelligence and the growth of its market cap will inspire more car companies to increase investment in the research and development of intelligent driving technology and the transformation toward intelligence. This will accelerate the entire industry’s pace toward the intelligent era, improve the overall level of intelligence in the industry, and promote the automotive industry from traditional industrial machinery to the field of intelligent technology.

Sales lead the way, and the "God's Eye" opens the path of self-transcendence for intelligent driving.

In fact, BYD's launch of the "God's Eye" smart driving system may not be aimed at competing with other brands, but rather to embark on a path of self-transcendence in intelligent driving. In recent years, BYD's impressive sales have proven an undeniable fact: even without an intelligent driving system at the time, BYD's products were still very popular among consumers, with strong market demand.

According to BYD's "2024 December Production and Sales Report", the total sales of BYD in 2024 is approximately 4.27 million vehicles, a year-on-year increase of 41.26%.

Data from the China Association of Automobile Manufacturers shows that in 2024, China's automobile production and sales reached 31.282 million vehicles and 31.436 million vehicles respectively, with year-on-year growth of 3.7% and 4.5%. Among them, production and sales of Electric Vehicles reached 12.888 million vehicles and 12.866 million vehicles respectively, with year-on-year growth of 34.4% and 35.5%. It is not difficult to see that BYD's sales growth rate is significantly higher than that of the Electric Vehicle Industry.

Looking at January 2025, according to BYD's "January 2025 Production and Sales Report", BYD's total sales in January is approximately 0.3 million vehicles, a year-on-year increase of 49.16%.

Data released by the Passenger Car Association indicates that in January, wholesale sales of New Energy Passenger Vehicles reached 0.889 million vehicles, a year-on-year increase of 27.1%. Calculating, BYD's market share in the domestic Electric Vehicle market is approximately 33.7%.

"Q&M Dental intelligent driving" may lead to a major reshuffle in the industry? Institutions: Similar to the rapid development of smart phones starting in 2010.

The "God's Eye" advanced intelligent driving system released by BYD successfully integrates advanced driving functions into new energy models starting from as low as 0.07 million yuan. This innovative measure not only breaks the barrier of high prices for advanced driving systems but also promotes the development of smart capabilities in Electric Vehicles.

Specifically, BYD's God's Eye system is divided into three technical solutions:

Heavenly Eye A: Triple laser version, mainly equipped on the Yangwang brand.

Heavenly Eye B: Laser version, equipped on brands such as Denza and BYD.

Heavenly Eye C: Triple lens version, mainly equipped on the BYD brand.

BYD's Q&M Dental strategy has broken the traditional market pattern and may lead to a major reshuffling of the Industry. This strategy puts greater competitive pressure on other automakers in the mid-to-low-end market, promoting the reshaping of the industry's competitive landscape. The rapid development of its smart driving business will drive the mutual growth of upstream and downstream companies across the entire Industry Chain.

From the market perspective, competition rules have been broken. Previously, high-level smart driving was mainly concentrated in high-end models priced above 0.3 million yuan, with less than 10% of vehicles equipped with advanced smart driving in China in 2024. BYD has turned smart driving from a Luxury Good into a necessity. This forces competitors to rethink their pricing logic and product strategy, intensifying competition in the mid-to-low-end market and shifting market competition from a simple price war and configuration battle to a competition based on the level of smart driving technology popularization and cost-effectiveness.

From a technological perspective, the development route urgently needs reform. Previously, auto companies largely flaunted their technological strength based on the 'number of Lidar' and 'TOPS value of computing power.' BYD's 'Heavenly Eye' system has abandoned reliance on high-precision maps, marking a shift of smart driving technology from 'map-reliant' to 'cognitive intelligent.' This technological path may become the mainstream direction for future smart driving development, forcing other car companies to reassess their technology routes.

From the Industry Chain perspective, the role of suppliers may be restructured. BYD's scaled demand will drive technological upgrades and cost reductions in upstream sectors such as chips and Sensors. Traditional Tier 1 suppliers face the risk of being replaced by car companies' independent research and development. Data-sharing agreements between car companies and mapping service providers, as well as cloud computing companies, will become competitive focal points. BYD has established a first-mover advantage through its vehicle-cloud database, and other companies will also increase investments and competition in data Assets to enhance the competitiveness of their smart driving technology.

China Merchants Research Reports indicate that BYD's progress in smart driving has exceeded expectations, and there is a bullish stance on the wave of smart driving equality in the industry it leads. This is analogous to the rapid development starting point of smart phones in 2010, where by 2025, it is expected to enter a period of rapid development in advanced smart driving. It is recommended to focus on investment opportunities in BYD's smart driving Industry Chain.

Editor/Somer