Xing Yanjun said
Lead
According to the data of the Association of Passenger Vehicles, the wholesale volume of passenger cars in October 2021 was 1.98 million units, of which the wholesale volume of new energy vehicles was 368,000 units, an increase of 6.3% month-on-month and 148.1% year-on-year.
Source: Northeast Securities Author: Li Hengguang
1. New energy vehicles are high and triumphant, and growth can be expected in the coming year
1.1. Review: Accelerated penetration of new energy vehicles, low-end and mid-to-high-end vehicles
In 2021, new energy vehicle sales are expected to exceed 3.2 million units, with a penetration rate of 15%. According to the data of the Association of Passenger Vehicles, the wholesale volume of passenger cars in October 2021 was 1.98 million units, of which the wholesale volume of new energy vehicles was 368,000 units, an increase of 6.3% month-on-month and 148.1% year-on-year. From January to October 2021, the cumulative wholesale volume of new energy vehicles was 2.36 million units, and the penetration rate reached 14.3%. From the perspective of sales, the monthly sales of new energy vehicles in 2021 have reached new highs, monthly sales are expected to exceed 400,000 units, annual sales are expected to reach 3.2 million vehicles, affected by chip shortages, october new energy car sales in the peak season of automobile sales did not show more than expected growth, but with the ST Malaysia packaging and testing factory as the representative of the chip production capacity gradually recovered, in November and December, the monthly sales of new energy vehicles are expected to exceed 400,000 units. From the perspective of penetration rate, between 2015 and 2020, the penetration rate of new energy vehicles will increase from 1% to 6.5%, and the penetration rate of new energy vehicles is expected to reach 15% in 2021, and the new energy vehicle market will usher in a big outbreak.
Low-end A00 and high-end B/C models have become the explosive growth points of new energy vehicles. In 2021, the new energy vehicle market shows a "spindle-shaped" structure, with micro-electric vehicles and high-end luxury electric vehicles becoming two levels of growth, accounting for more than 70% of the sales of new energy vehicles, while the sales volume of A0 and A-class electric vehicles is general and mainly on the operation side, and has not yet ushered in an outbreak. In the A00 model segment, the low-end A00 is priced at 30,000-50,000, represented by the Hongguang Mini, and the mid-to-high-end A00 is priced at 50,000-100,000, represented by the Great Wall Euler Black Cat and the Zero Run T03. Among them, the average monthly sales of Hongguang Mini have exceeded 40,000, while the average monthly sales of Black Cat and Zero Run T03 are about 5,000. High-end B/C models are mainly represented by new forces, according to the data released by various companies, Xiaopeng, Weilai, ideal three caused by the new forces of car sales have exceeded 10,000 in a single month.
Xiaopeng Automobile delivered 15,613 units in November 2021, an increase of 54% month-on-month and 270% year-on-year, making it the highest-selling car company among the new domestic car-making forces. After the delivery volume of the ideal car reached 9433 units in August, the lack of cores in September and October did not break through 10,000, and fell to the level of less than 8000 units, and in November ushered in an outbreak, the delivery of the ideal one bicycle reached 13485 units. After the first "breaking 10,000" new car deliveries in September, Weilai Automobile's sales in October were "cut", with only 3667 units, due to the lack of cores and the upgrading of its own production line, while in November it returned to normal, delivering 10,878 units.
1.2. Outlook: Why are we optimistic that the new energy vehicle market will continue to grow at a high level next year?
1.2.1. The driving force of new energy vehicle sales has changed, and C-end demand has become an absolute main force
The underlying driving force of the new energy vehicle market has shifted to be driven by policies, supply-side and demand-side factors. In the case of the continuous decline of new energy subsidies, the driving force of the policy end of new energy vehicles has slowly shifted from direct financial subsidies to soft administrative measures, and the dependence of new energy vehicles on subsidies is decreasing and beginning to return to natural growth. The dual credit policy with the nature of constraints and incentives, the license plate dividend of the limited license city, and the inclusion of charging piles in the national new infrastructure have become the main means for the state to promote the development of new energy vehicles. From the supply side, new energy vehicle companies continue to plan new models and increase production investment to become a typical supply to create demand, taking the A00 model as an example, before the Emergence of Hongguang Mini in the market, domestic micro-electric vehicles are almost extinct, represented by Hongguang Mini and Euler series models for female users.
From the demand side, with the deepening of the degree of market cultivation, technological progress and continuous improvement of the range of factors, consumers' cognition of new energy vehicles continues to improve, tesla, Weilai, Xiaopeng, ideal and other representative models of the main high-end electric vehicle market, its sense of science and technology, futuristic attributes provide more differentiated products, won the support of consumers. According to estimates, 40% of the new energy vehicles sold in 2019 were used as operating vehicles, while about 21% in 20 years and about 15% in the first half of 21 years, the proportion of the operating end continued to decline, and the demand for the C-end became the absolute dominant force for new energy models.
1.2.2. Chip shortages ease, and suppressed capacity and demand are expected to be released
Chip shortages are expected to ease in Q1 next year, and suppressed capacity and demand will be released. The problem of car core shortages has been visible since 2020 and has continued to this day, according to Auto Forecast Solutions, as of November 14 this year, the global automotive market has been cut by 10.097 million units due to the shortage of chip supply. Among them, the cumulative production reduction in Europe this year was 2.859 million units, the cumulative production reduction in North America was 3.152 million units, the cumulative production reduction in Asia (excluding China) was 1.696 million units, and the cumulative production reduction in the Chinese market was 1.981 million units, accounting for 19.6% of the total production reduction. It is predicted that the cumulative production reduction of the global automobile market will reach 11.263 million units for the whole year this year.
Focusing on the domestic market, due to the small volume of new energy vehicles and some low-end models do not need to use chips and other factors, the impact of chips is mainly fuel vehicles, but the expansion of the new energy market is also significantly affected, due to the epidemic situation of ST Malaysia sealing and testing plant, Infineon's turn to system chip shortage and other issues, the wholesale volume of new energy vehicles in October was 368,000 units, compared with 355,000 units in September, and did not show more than expected growth in the peak season of automobile sales. However, with the gradual recovery of chip production capacity, the sales of new energy vehicles will gradually return to normal, and due to the shortage of supply side, market demand is still being suppressed, and it is expected to usher in an outbreak next year.
1.2.3. Supply continues to increase, and car companies continue to introduce new models
The speed of launch of new energy models is accelerating, and new car-making forces, independent brands, and joint ventures/foreign-funded car companies are exerting their full strength. According to incomplete statistics, about 80 new energy models are expected to be listed next year, covering mainstream new car manufacturing forces, independent brands, and joint ventures/foreign car companies. In the new energy vehicles, A0/A class cars are still blue oceans, mainly the world of traditional fuel vehicles, and the biggest cake in the automobile market is expected to give birth to a number of explosive models in the future. In the field of plug-in hybrid, the self-owned brand hybrid system has been fully rolled out this year, BYD DM-i, Great Wall DHT, Geely Lei, Shenzhiqing Hi· Hybrid systems such as X are expected to bring large increments in the next year.
2. New energy vehicles create new demand and open up incremental space for parts
2.1. Air suspension, supply and demand at both ends to meet the industry inflection point
2.1.1. Market Space
According to Mordor Intelligence, the global automotive air suspension market space will reach $6 billion in 2020, and it is expected that the global air suspension market space will reach $9 billion by 2026, with a compound growth rate of more than 6%. Among them, the Asia-Pacific market will grow significantly, while the growth in the Asia-Pacific region will be mainly driven by the Chinese market. We believe that at present, the air suspension of domestic new energy vehicles is still in its infancy, and most of the fixed-point projects obtained by suppliers this year and in 2022 will begin to be released in 2023. Considering that most models will be listed between the second half of next year and the first half of the next year, we judge that the empty overhang penetration rate of the domestic new energy vehicle market will increase in the past two years, and the acceleration will be further accelerated after 2024.
We judge that the domestic passenger car market in 2025 is at least a market space of more than 16 billion. Previously, the market space for China's air suspension was small, and the Chinese market will have a considerable growth rate in the next few years. Assuming that the single car empty suspension scheme is worth 8,000 yuan, if the penetration rate of models with a price of 200,000 to 500,000 is more than 30% in 2025, the number of air suspensions in the domestic passenger car market is about 2 million, which is about 16 billion market space. It is expected that Baolong Technology will have about 500,000 air spring shipments in 2025. Zhongding shares are committed to becoming a comprehensive supplier of hardware, the company's air supply unit market share has been maintained at more than 50%, optimistic that the company can also obtain a certain share after having air spring supply capacity in the future, the overall comprehensive market share is expected to reach about 30%.
2.1.2. Competitive Landscape
The front-loading market for air supply units is mainly WABCO (acquired by ZF), AMK (a subsidiary of Zhongding Co., Ltd.), and Continental occupies the main share at home and abroad. In terms of subdivision, the air supply unit includes air compressors, air receivers, valve groups and other components, of which the core component is the air compressor, which is also the component with the highest technical barriers, continental, WABCO, AMK have chosen to develop and produce air compressors on their own, and it is difficult for foreign competitors to enter this field in a short period of time.
There are other components in the air supply unit. Among them, there are many manufacturers of gas storage tanks with production capacity. The market structure for manifold components is currently relatively single, with about 90% of the world's market share concentrated in the German company RAPA, which supplies valve groups for overhang suppliers to assemble into air supply units. We believe that the reason for the single market structure of the valve group is mainly because the previous empty suspension market space is not large, not because the technical difficulty of the valve group is high, with the rise of the air suspension penetration rate, The Chinese empty suspension market is open, we judge that the valve group will appear more suppliers, there is a possibility of domestic substitution.
In the passenger car air spring market, the world's major manufacturers are Continental and Wyback, supplying system integration solutions for OEMs. In addition, there are several companies in the market that also have a certain influence, such as Fanstone FIRESTONE. In the domestic market, the only passenger car air springs that have reached the mass production level are Baolong Technology and Konghui Automobile (unlisted companies).
There are many competitors in the field of air springs for commercial vehicles. Henrisen can manufacture air springs for cars and does not have air springs for passenger cars. Goodyear's old business was mainly concentrated on commercial vehicles, the air spring business has been acquired by the mainland, and currently there is only a small commercial vehicle business. In addition, The original business of Pestone was mainly concentrated in commercial vehicles, and in recent years, it has begun to enter the passenger car air spring market. SAF Holland's business is an integrated solution for trailer air suspension, SAF Walland is one of Theron Technologies customers, AND SURF Holland's commercial vehicle air springs used in China are provided by Pleus Technologies.
2.1.3. The two ends of supply and demand catalyze the inflection point of the industry
We believe that air suspension is beginning to receive widespread market attention, mainly due to the catalysis of supply and demand:
On the demand side, the demand for empty suspension of new energy vehicles has increased the importance of consumers and competitors to empty suspension. Although air suspension is not directly related to the classification of fuel vehicles and electric vehicles, it is undeniable that new energy vehicle companies provide an important boost to air suspension, because the stability requirements of the chassis system of new energy vehicles are much higher than those of pure fuel vehicles, and the air suspension system has gradually become the mainstream configuration of the new energy vehicle platform. Almost all of Nio's series are equipped with air suspension, the X01 of the ideal car will also be equipped with air suspension, geely automobile's extreme krypton provides consumers with an optional solution for air suspension, and more than half of consumers are interested in installing it. The American electric pickup rivian also wants to configure air suspension to further open up market hotspots. On the one hand, new energy vehicles have helped the price of empty suspension models to explore, on the other hand, consumers have a high degree of attention to air suspension to generate demand, in addition, it also put pressure on competitors, further prompting other fuel vehicles and new energy vehicles and other OEMs to speed up the speed of assembling air suspension and increase penetration.
On the supply side, the localization plan accelerates the increase in the penetration rate of empty suspension. Previously, overseas manufacturers provided empty hanging solutions, with prices of more than 12,000 yuan and additional high development costs. With the acquisition of AMK by Zhongding into localization and the successful entry of Baolong Technology into the mass production stage of passenger car air springs, the localization of the air suspension system attracts the attention of the main engine factory with a plan of about 8,000 yuan, which is expected to help the models equipped with air suspension to achieve price exploration and improve the penetration rate of the air suspension.
The total price of parts of domestic air suspension is between 4000-5000 yuan (if the pillar cost of the shock absorber is not considered). Coupled with some software development costs, the overall program price is about 8,000 yuan, if you further deepen the domestic program, the price still has a large room to explore.
According to the survey, in the current localization scheme, the price of four gas springs (excluding shock absorbers) is between 2000-3000 yuan. Air springs are divided into integrated and independent, integrated than independent value is higher, because the car's general center of gravity is biased to the front, the front overhang needs to be better equipped integrated gas springs. If the front suspension is equipped with two integrated springs and the rear suspension is equipped with two independent springs, the value is about 2000 yuan; if the main engine factory chooses four springs to choose the high configuration of the integrated spring, the value is about 3000 yuan.
The air supply unit is the technical core of the empty suspension components, and the value of the bicycle is about 2000 yuan, of which the value of the air compressor of the core component is about 1000 yuan. In the rest, the price of the gas tank is about 200-500 yuan, the sound insulation package is about 150 yuan, and it also involves parts such as distribution valves and pipelines.
In addition to air springs and air supply units, the prices of other components vary. Electronic shock absorbers and other ancillary parts total about 3,000 yuan; the core content of the ECU is an algorithm, and the hardware cost is about 400-600 yuan. The sensors are mainly suspension height sensors and acceleration sensors, etc., and the price is about 300 yuan after all of them are added. In addition, the overall software development cost is about 2000 yuan.
2.1.4. Future Integration Modes
We believe that in the future, "OEM integration" will replace the "tier1 vendor integration" model. At present, European car companies choose to subcontract parts, and finally car companies complete more integrated solutions, such as Mercedes-Benz and BMW. The initial models of domestic Dongfeng Lantu, Great Wall, and Xiaopeng and Weilai chose the model of tier1 manufacturer integration, but we believe that the integration of OEMs themselves will become a major trend. The reason is that: on the one hand, with the accumulation of technical knowledge of the main engine factory itself, it has the ability to complete the integration, on the other hand, the integration of the main engine factory itself can reduce the cost compared with the model of the tier1 manufacturer. According to our research and analysis, at present, about 60% of the car companies in the whole market adopt the mode of integration of the main engine factory itself, and the rest still adopt the mode of integration by the tier1 manufacturers, but we judge that the proportion of the integration of the main engine factory will continue to increase in the future.
More specifically split, we judge that the future model will become the oem to suppliers to make full hardware procurement, self-developed ECU parts, and then integrate software and hardware by themselves. At present, the main engine factory has been advocating the so-called decoupling procurement, the ECU for self-research model. On the one hand, ECU decoupling procurement helps OEMs reduce costs. On the other hand, if the control procedure is purchased from the parts manufacturer, the main engine factory loses the initiative to adjust the model program in a certain sense. Therefore, whether it is a new force in car manufacturing or a head independent brand, it is currently a decoupling trend, and the development of algorithm software is mainly self-developed.
2.2. Panoramic canopy and HUD display glass, driving the volume and price of automotive glass to rise
Focusing on the present, new energy vehicles are the core driving force for the expansion of the auto glass market. Canopy glass subverts the traditional design and is more in line with the needs of new energy vehicles for science and technology and futurism. At present, Tesla's full range, Weilai EC6, Xiaopeng P7, Volkswagen ID.4 and ID.6 and other mainstream models of new energy vehicles are equipped with panoramic canopy. In 2020, the penetration rate of canopy glass in new energy vehicles is about 16.7%, and from January to October 2021, it will reach about 23.2%, and the penetration rate of canopy glass will increase rapidly. HUD is also accelerating penetration, domestic new energy models Volkswagen ID.4, Hongqi EHS9 has begun to carry the latest AR-HUD, AR-HUD represents the future development direction of HUD, more in line with the label of intelligent electric vehicles.
From the perspective of glass consumption, canopy glass greatly increases the amount of bicycle glass, generally small skylight glass dosage of 0.2 square meters, panoramic sunroof 0.5-1 square meters, and canopy glass generally reached 1.5-2 square meters. From the glass value increment, the current Fuyao ordinary canopy glass average price in 800-1000 yuan, integrated coating insulation, intelligent dimming and other functions of the canopy monolithic value has reached the highest 5000 yuan, with the canopy glass integrated coating insulation, hue light and other functions, it is expected that by 2025 the average price of ordinary canopy glass between 1500-2000 yuan; the average price of ordinary HUD front windshield display glass is 500-600 yuan, AR-HUD display glass reached 1000 yuan, compared with the traditional front windshield The unit price of 200 yuan increases by 2-4 times. With the continuous penetration of new energy vehicles, the volume and price of automotive glass have increased twice.
Looking forward to the future, with the rapid increase in the penetration rate of canopy glass and HUD, the compound growth rate of the domestic auto glass OEM market size can reach more than 20%. According to the forecast, the production and sales of new energy vehicles are expected to reach 7.1 million units by 2025, and the penetration rate of canopy glass in new energy vehicles is expected to reach 55%, and the penetration rate of fuel vehicles is expected to reach 15%. The average price of canopy glass rises to 1500-2000 yuan, while HUD penetration in automobiles can reach 25%. At that time, the domestic tropesian frontage market size will reach 13.2 billion, and the huD will drive the value of the front windshield to increase by 3.3 billion, compared with 2020, the size of the auto glass frontage market will increase by 1.5 times.
2.2.1. Borrowing the dongfeng of new energy vehicles, the panoramic canopy penetrates rapidly
Tesla leads the trend of electric vehicles, the penetration rate of panoramic canopy has increased rapidly, according to our estimates, the penetration rate of canopy glass in new energy vehicles in January-October 2021 will increase to more than 23.2%. All Tesla models use a panoramic canopy, and the canopy glass subverts the traditional design, which is more in line with the needs of new energy vehicles for science and technology and futurism. At present, in addition to the Tesla Model3/Y, the mainstream models of new energy vehicles such as WEILAI EC6, Xiaopeng P7, Geometry APro, Geometry C, ID.4 and ID.6 are equipped with panoramic canopy. According to the data of the Association of Automobile Associations, among the domestic new energy models, the penetration rate of canopy glass in 2020 is 16.7%, and the penetration rate of canopy glass in January-October 2021 will increase to 23.2%. According to incomplete statistics, in Q4 2021 or early 2022, there will be more than a dozen new energy models equipped with canopy glass mass production on the market, including Xiaopeng P5, Weilai ET7, Extreme Kr 001, etc. After the start of these models, the penetration rate of canopy glass is expected to increase rapidly.
The panoramic canopy has driven the double growth of the volume and price of steam glass. The panoramic canopy replaces the original metal roof and sunroof, greatly increasing the amount of bicycle glass, the general small sunroof glass dosage of 0.2 square meters, the panoramic sunroof 0.5-1 square meters, and the canopy glass universal reach 1.5-2 square meters. In terms of value, the canopy glass ASP (glass value per unit area) is also higher, and the asP of the traditional car front and rear windshield and side windows is 174 yuan / square meter (the average price of Fuyao glass in 2020), and the value of the whole vehicle is about 700 yuan. Now the average price of a basic version of canopy glass is 800-1000 yuan, the value of the coating insulation function is increased by 700-1000 yuan, and the value increase of intelligent graded dimming is about 1000 yuan. At this stage, the highest unit price of mass production canopy has reached about 5,000 yuan, compared with the unit price of about 700 yuan for traditional vehicle vapor and glass, the increase is very large.
2.2.2. HUD front windshield display, driving ASP doubling
HUD accelerates iteration, W-HUD has become the mainstream of the current market, and AR-HUD is poised to develop. Underpinning the growth of the HUD market is the rapid iteration of the technology behind it. C-HUD has been gradually marginalized due to the shortcomings of small screen, small imaging area, close distance, and limited display content. W-HUD is mainly the former windshield for projection medium to reflect imaging, whether it is imaging range, projection distance or content richness, have been greatly optimized, so in recent years has become the mainstream.
From the perspective of vapor glass, the value of HUD display glass is doubled compared to the traditional front windshield, and with the penetration of W-HUD and ARHUD, the value increment of the front windshield display glass is obvious. The traditional car front windshield is worth about 200 yuan, while the value of the front windshield display glass adapted to W-HUD is about 500-600 yuan, while the ARHUD has higher requirements for the front windshield, and the single piece value can reach 1000 yuan. At present, HUD is exploring from high to low, from optional to standard, from joint venture brands to independent brands, and the penetration rate is constantly improving. With the gradual application of W-HUD or AR-HUD in representative models such as Harvard and Volkswagen ID., HUD display glass is expected to usher in greater growth in the next 5 years.
2.2.3. The volume and price of automotive glass have doubled, and the space of the domestic auto glass industry will double in the next 5 years
We expect that by 2025, the domestic auto glass OEM market size will reach 38.4 billion, the panoramic canopy frontage market size will reach 13.2 billion, and the HUD will drive the value of the front windshield by 3.3 billion, compared with 2020, the auto glass OEM market size will increase by 1.5 times. We predict that in 2025, the penetration rate of Tianmu glass in new energy vehicles is expected to reach 55%, and mainly concentrated in high-end models, the price of Tianmu will reach 1500-2000 yuan, and huD penetration in automobiles is expected to reach 25%. Due to the higher value of panoramic canopy and HUD display glass than traditional automotive glass, with the acceleration of its penetration rate, the rapid expansion of market space will bring about a compound growth rate of 20% in the next 5 years.
Domestic automotive glass OEM market size estimation:
Core assumptions:
1) Car sales, we assume that 30 million vehicles will be sold in 2025, and the penetration rate of new energy vehicles will be 24%. In 2021, new energy vehicles ushered in explosive growth, according to the data of the Federation of Passenger Vehicles, the wholesale volume of new energy passenger cars in January-October was 2.361 million units, and the wholesale volume is expected to exceed 400,000 units in November and December. We forecast domestic vehicle sales of 25 million units and new energy vehicles at 3.2 million units in 2021. According to the forecast of the China Automobile Association, In 2025, China's automobile production and sales will reach 30 million, the new energy penetration rate will be 20%, according to the current trend of new energy vehicles, the future expectations of new energy vehicles are more optimistic, here we assume that the new energy penetration rate in 2025 is 24%, and the sales of new energy vehicles are 7.1 million.
2) Canopy glass permeability, we assume that the new energy vehicle canopy glass penetration rate is 55%, and the fuel vehicle penetration rate is 15%. According to estimates, in 2020, the penetration rate of Tianmu glass in new energy vehicles is 16.7%, 23.2% in January-October 2021, Tianmu glass is mainly used in new energy vehicles, and the current models are concentrated in A0-class, A-class, B-class cars or SUVs, with an average price of more than 100,000 yuan in high-end models. We believe that the new energy vehicles with lower prices of the A00 class (such as the Hongguang mini) will not be equipped with high-value canopy glass, and according to the market demand or choose a configuration similar to the panoramic sunroof + sunshade, the value of the whole vehicle will still not be too high, and the sales of A00-class models in January-October 2020 will account for 30% of the total new energy vehicle sales. Canopy glass penetration speed is relatively fast, the domestic vapor glass leader Fuyao currently has more than 100 models of car canopy orders, we expect that in 2025 panoramic canopy in the new energy vehicle penetration rate can reach 55%, high-value canopy is mainly used in high-end models; traditional fuel vehicle models, now equipped with canopy fuel vehicles are mostly medium-term modifications, as an option, it is expected that by 2025, the penetration rate of the canopy of oil-fired vehicles will be 15%, which is much lower than the penetration rate of canopy glass in new energy vehicles.
3) HUD penetration, we assume a HUD penetration rate of 25% in 2025. The HUD assembly rate for new passenger cars in 2020 is 3.3%. According to the forecast of Gaogong Intelligent Automobile Research Institute, it is expected that the HUD front-loading rate will exceed 10% by 2022, and the domestic front-loading penetration rate will reach 25% in 2025. HUD assembly to W-HUD-based, C-HUD is marginalized, AR-HUD represents the future development direction but is still limited by technical thresholds and costs, it is expected that the AR-HUD assembly rate in 2025 is 5%.
4) Canopy glass and HUD show glass value. At present, the average price of tianmu glass single piece is 800-1000 yuan, with the integrated coating insulation of tianmu glass, color change light and other functions, the value of single piece will continue to increase, and it is expected that the average price will be between 1500-2000 yuan by 2025. The unit price of the W-HUD front windshield display glass is 500 yuan to 600 yuan, compared with the traditional front windshield value (200 yuan), the increment is about 350 yuan, and the AR-HUD front windshield display glass is worth 1000 yuan and the value increase is 800 yuan.
3. Intelligence is the deterministic trend, Xiaopeng power intelligent driving and intelligent cockpit
We believe that intelligence is the definite trend of automobile development, and we are most concerned about the layout of Xiaopeng Automobile in terms of intelligence among new energy vehicles.
3.1. Intelligent driving: independent research and development of XPILOT, NGP as the core highlight
XPILOT is an automatic driving assistance system independently developed by the company for road conditions and driving characteristics in China. Since the release of XPILOT2.0 in 2018, the system has passed through the two stages of XPILOT2.5 and XPILOT3.0 and stepped into the XPILOT3.5 era. XPILOT3.5 can not only achieve L3 level automatic driving, but also has high-speed automatic navigation assistance functions with high-speed and urban road conditions covering all aspects, and its technical strength is at the forefront of the industry.
The success of XPILOT autonomous driving is inseparable from strong hardware support. Xiaopeng's latest model, xiaopeng P5, uses 2 lidar, 5 millimeter wave radar, 12 ultrasonic sensors, 13 high-definition cameras with a total of 32 sensors, plus 1 set of high-precision positioning unit (GNSS+IMU), which is currently the model with the highest material hardware configuration and the first mass production model equipped with lidar. Its computing chip uses NVIDIA Xavier autopilot chip, with a computing power of 30 Tops, but the power consumption is only 30W. The combination of 4 front cameras, 1 tri-eye camera module and 1 front-facing security assist camera, 5 enhanced perception cameras (two on the left and right sides, one on the rear) and 4 surround view cameras give XPILOT the most complete vision system in a production car, providing a powerful visual guarantee for panoramic imaging and automatic parking.
The XPILOT function module is mainly divided into three sub-systems: intelligent parking system, intelligent driving system and intelligent safety system. In terms of automatic parking, XPILOT has the industry's leading integrated ultrasonic system and panoramic vision system, and Xiaopeng Automobile parking technology has covered 70% of the scenes, realizing the automatic parking in and out of parallel, vertical parking spaces and oblique parking spaces of wired frames and wireless frames, with a success rate of up to 80%.
In terms of safety, XPILOT provides forward distance monitoring, forward collision warning, automatic emergency braking protection in the forward direction; lane departure warning, blind area monitoring and early warning, door opening warning prompt on the side; in the rear, it provides rear lateral vehicle early warning and rear collision warning function, and then assists with traffic sign identification, transparent chassis and 360-degree panoramic image function, providing users with an active safety warning and protection system covering 360 degrees, providing maximum protection for daily driving safety. Let users open with peace of mind.
The NGP (Navigation Guided Pilot) function is the core highlight of the XPILOT system, which can realize automatic navigation assistance from point A to point B based on the navigation route set by the user. In January 2021, XPILOT 3.0 was officially launched, adding a high-speed NGP function. This function relies on centimeter-level high-precision positioning and decimeter-level high-precision map, in addition to the basic automatic speed limit adjustment, automatic switching highway, optimal lane selection, automatic up and down ramp and automatic overtaking of XPILOT 3.0, it also adds common functions for Chinese road scenes such as super follow-up of congested roads, night overtaking reminder, faulty car avoidance, automatic emergency avoidance of lane changes, avoidance of large trucks and traffic cone recognition and avoidance of domestic roads.
In XPILOT 3.5 released by Xiaopeng, the NGP function of urban conditions will be realized, and it will become an automatic navigation assistance driving system that can cover high-speed and urban road conditions. The urban NGP function, on the basis of the high-speed NGP function, covers the urban expressway and the main and secondary roads connected with the high-speed, has the traffic capacity of traffic light intersections, and also has the ability to overtake the urban road conditions, customize the ability to follow the car, automatic speed limit adjustment ability and the ability to travel around the island. In the future, the powerful NGP function will provide users with extremely user-friendly assistance and free users' hands.
The Xiaopeng P5 is equipped with lidar, which will further enhance the product power of the NGP function. The custom-built, vehicle-grade lidar used by the Xiaopeng P5 is developed by Lanwo Technology to provide an ultra-wide field of view, denser point cloud output and more sensitive perception. The radar has a transverse FOV of 120°, and the dual radar combination provides a 150° ultra-wide point cloud vision for the front of the vehicle, which greatly improves the vehicle's experience of intelligent driving functions such as congestion of side vehicles. Targeted solutions to the working conditions with Chinese characteristics, to achieve the city road conditions anti-congestion function. Lidar's denser point cloud output allows the algorithm to detect small target objects such as pedestrians, bicycles, ice cream buckets, etc. on distant roads faster. Identify circumventible areas, such as road branches, manhole covers, tires, garbage, pet cats and dogs, and other objects that have not yet been visually identified, as well as construction areas and traffic accidents. And lidar has a more sensitive perception ability, it is not affected by ambient light, can actively detect black low-reflectance targets up to 150 meters away, its angle resolution is as high as 0.16°, the central area brush new frequency of 20Hz, can achieve real-time perception of the surrounding environment every 5 milliseconds. High sensitivity can greatly improve the transverse and vertical position recognition accuracy and spatial resolution, draw 3D images of obstacles, more accurately identify scenes such as fences, curbs, and green isolation belts, help the automatic driving assistance system cope with distant obstacles, and improve the experience of automatic driving assistance functions. Therefore, the application of lidar can greatly improve the user's experience when using the NGP function.
3.2. Smart Cockpit: Leading the industry in hardware and software, committed to an open ecosystem
Hardware configuration:
Xiaopeng Automobile is at the leading level in the hardware configuration of the intelligent cockpit. At present, the car machine chip used in the mainstream model is the Qualcomm Snapdragon 820A vehicle specification level chip, and the Xiaopeng G3i and Xiaopeng P7 are also in this list. The newly released Xiaopeng P5 uses Qualcomm Snapdragon SA8155P chip, which is Qualcomm's latest generation of vehicle-grade chips, which hash rates 3 times that of Snapdragon 820A and 3.5 times the computing power of Tesla's chips in the same period, reaching 3.6 million times per second. As the first 7nm process to build a vehicle-grade digital cockpit platform, the 8155 also supports a new generation of networking technologies, including WiFi6, Bluetooth 5.0 and more. Compared with the 820A, the 8155 is smaller, hasner heat, and hash rate and bandwidth, which can greatly improve the speed and stability of OTA. In addition, Xiaopeng Automobile's car machine system memory is also the most used in mainstream models, and the memory of Xiaopeng P5 has reached 12G+128G, which is enough to support the Xmart system version upgrade in recent years. In terms of screen, Xiaopeng adopts the combination of the industry's mainstream central control screen and instrument screen, of which the size and resolution of the control screen are very good, which can provide users with a good visual experience.
Operating system: Xmart OS system is An in-vehicle intelligent operating system independently developed by Xiaopeng based on the Android platform. The system has established its own intelligent advantages from three levels: remote control, AI intelligence and the ever-expanding V2X. In terms of remote control, Xiaopeng Motors supports mobile phone APP for remote air conditioning switch, close doors and windows, find charging piles, find car positioning, find the surrounding environment and other functions, Xmart OS is also the first domestic support through the mobile phone APP remote control vehicle OTA upgrade of the vehicle system.
Xiaopeng Automobile's intelligent voice interaction technology is at the leading level in China. The Xmart OS system can achieve full-scene voice control, and most of the in-vehicle functions can be recalled through the "small P" voice assistant. In addition, the speech system also supports intelligent functions such as continuous dialogue, semantic interruption, semantic rejection, and speech recognition in the two-tone area, thereby improving the accuracy of human-computer interaction. In terms of the Internet of Everything, Xmart OS can not only interact with mobile phones, but also directly control the AI panoramic camera on the roof and the outdoor drone through voice, adding more external hardware usage scenarios and realizing the seamless connection of multiple spaces. As a result, the Xmart OS system provides users with a wealth of conveniences with an industry-leading level of intelligence.
Av & Entertainment:
Xmart OS provides excellent audio-visual entertainment. In terms of hardware, Xiaopeng P5 is equipped with a 15.6-inch high-definition large screen, also equipped with a Dynaudio audio system, the whole car is equipped with 18 original imported Tanner speakers, professionally designed by Tanner layout, its hardware configuration is second to none. In terms of software, the system provides a variety of video and music apps for users to choose from. Xiaopeng is committed to making the car a user's music intelligent cockpit, not only equipped with a K-song microphone with the car, but also arranged 13 mood lights in the car, which can present 20 colors, and deeply integrate with music, air conditioning temperature, active safety system, and intelligent system to enhance the intelligent interactive experience. The Xmart OS system supports account interoperability between Xiaopeng account and song listening software, realizing the seamless connection of music preferences between mobile phones and car systems. In addition, the in-car AI function can also automatically learn the user's music preferences and recommend relevant music for the user. In terms of entertainment, Xmart offers a variety of in-car games with gamepads in the car. Xiaopeng P5 also added a customized game of steering wheel interaction, which can provide users with a more realistic gaming experience.
In-vehicle ecology: Xmart OS is committed to creating an open application ecology, covering games, entertainment, travel, convenient life and other aspects. In terms of the connection between the car machine system and the mobile phone, Xiaopeng Automobile supports the destination navigation sharing within its own APP, AutoNavi Map, Baidu Map, WeChat, Meituan and Dianping, which meets the car navigation needs of most social scenes. The car machine system also opens up functions such as online payment, which can realize convenient and password-free payment. Xmart OS is the world's first hardware-open in-vehicle ecosystem, allowing third-party applications to recall the vehicle's functions and data, thereby improving the playability and intelligence of the cockpit.
4. Analysis of key companies
4.1. Baolong Technology
At present, the company can produce air springs, air receivers, sensors, controllers and other components in the field of air suspension, and cannot produce air compressors and valve groups in air supply units for the time being.
At present, the biggest highlight of Baolong Technology in the field of air suspension is the development of air springs. The company's air spring adopts high-quality raw rubber and cord materials from international famous suppliers, and independently develops the industry's leading chlorine + natural rubber mixing formula. Realize the formula, mixing, calendering, molding, vulcanization, assembly of the whole process chain independent control, with perfect test equipment, to meet all the customer's test requirements. The company's sleeve air spring meets 80 °C high temperature double motion 1 million times, normal temperature 10 million times and -35 °C low temperature fatigue test, to meet the most demanding test standards of internationally renowned customers, membrane spring to meet 5 million times of room temperature fatigue test (national standard is 3 million times).
Localization is an inevitable trend of air suspension in the Chinese market. Compared with foreign competitors, the company's advantages mainly lie in price and geography:
On the price side, the domestic solution has a greater price advantage than the overseas supplier's solution. Viebucks' air spring solution is about 12,000 yuan per set, in addition to the high model development costs, foreign suppliers for a model of integrated development costs between 50 million and 100 million. Choosing a domestic solution has a large space for cost reduction for OEMs.
It is easier for companies to receive project orders as domestic suppliers. The product development of Waebucks and Mainland China is in Europe, and the Chinese team is very small, lacking development resources and manufacturing capacity, and the development speed is slow, and it is difficult to receive domestic projects. With the rapid growth of China's air suspension market, it is very likely that Wyback and Mainland China will expand production capacity in the future, but it has not yet been implemented at this stage. In addition, as a local enterprise, the company has the advantage of rapid response to domestic OEM customers.
Compared with domestic competitors, the company's main advantage lies in the barriers of air springs: (1) the requirements of rubber materials, the performance requirements of air spring rubber are several orders of magnitude higher than other rubber parts; (2) the difficulty of design. It is difficult for new entrants to grasp the standards for verification of the entire development test and the standards for process control. Among them, the air spring leather bag is the most critical rubber parts, the design of the leather bag requires about three to five years of research and development time, the reason is that rubber is not like metal, metal dispersion is relatively low, the dispersion of rubber is relatively large, from the formulation development, vulcanization process, etc., more arrangement and combination are needed; (3) as a moving parts need to withstand durability tests. Baolong Technology has conducted millions of durable experiments in the process of developing air springs, and also needs to meet high temperature and low temperature to ensure reliability under harsh industrial control;
(4) Patent barriers. German companies entered the field of air springs earlier, have a patent layout, competitors want to enter this field for independent development, need to consider the patent technology protection of foreign companies; (5) supply chain perspective, air springs Many parts are prone to insufficient supply at this stage. Part of The parts of Baolong Technology are self-made, including special bearings, special shock absorption and other products, at present, there is no successful supply chain in China, and it is still necessary to dock with foreign suppliers, but in the future, the company may have further cost reduction space. (6) Shortage of talents. Global and domestic lack of technical personnel in the field of air springs, Baolong technology layout earlier, the current development team size leading the opponent, the establishment of their own research and development system, and began to recruit new people to train new people to continue to make blood.
Compared with domestic competitors, the company has a first-mover advantage in the field of air springs. The company's layout was earlier, in 2012 to establish a project to manufacture air springs, debuted in 2014, starting from commercial vehicles, in 2016 to passenger cars. Around 2016, there was no real front-loading business of passenger car air springs, and it was limited by the requirements of foreign OEMs, and the company chose to develop the aftermarket in North America, Europe and China in 2016 to accumulate certain experience. In 2018, with Tesla, Weilai ES8, ES6 and other high-end electric vehicle models equipped with air springs, the domestic suspension market appeared opportunities. The company began to do pre-research and development of system integration in 2018, making it easier to overcome the difficulties of the entire supply chain from product design to process. The company's first-mover advantage can help obtain more OEM orders.
At present, the only two suppliers in China that can produce air springs for passenger cars are the company and Konghui Automobile (an unlisted company). Kong Hui Automobile began manufacturing air suspension front ends in 2018.
At present, the company has made a fixed-point project in the field of passenger car air springs, and is actively communicating with customers, and we are optimistic about the company's follow-up acceleration of the localization trend of air springs. We expect the company's air spring business to achieve revenue of 100-200 million yuan next year. It is predicted that 2 million domestic vehicles will be equipped with air springs in 2026, and the company's production capacity plan for 2026 is 500,000 vehicles.
In addition to the air suspension business, the company's other business lines are rich, and they all have considerable growth momentum. It is expected that the company's overall revenue will be close to 4 billion this year, and it is expected to reach 8 billion revenue within 5 years.
There are three types of mature business: (1) exhaust system pipe fittings to maintain revenue of 1 billion yuan, the next few years the revenue will be higher, followed by the development of electrification revenue will go down a little; (2) valve revenue is relatively stable, is expected to stabilize at 600-700 million; (3) balance block revenue to maintain an increase. The average price of the balance block is 1.2-1.3 yuan / block, and the balance block price of a car is more than a dozen yuan, about 2.5 million cars a year. The balance block has a low value per piece but the profit margin is acceptable, and it cooperates with customers such as BMW, Mazda, Daihatsu, Dongfeng Nissan, and Honda. Estimated revenue level of 100-200 million.
Emerging business: (1) the overall sensor business is developing rapidly, 5-year planning to reach at least 1 billion or more, next year sales are expected to reach more than 300 million, of which overseas projects are estimated to be 100 million; (2) lightweight business, large structural parts are expected to have sales of more than 100 million this year, close to 200 million next year, and reach about 500 million after 5 years; (3) TPMS business is expected to continue to grow, on the one hand, the overall market fundamentals recover, reflected in the tire pressure penetration rate forecast continues to rise, the aftermarket size rises, and the commercial vehicle market grows. On the other hand, the company's market share continues to rise, and this year TPMS is expected to get a new business fixed point, and it is expected that the tire pressure will be close to about 2 billion sales in 2026.
4.2. Zhongding Shares
From the overall perspective of air suspension, WABCO, AMK, and Continental are industry leaders in the international market. From the perspective of sales package quantity, WABCO and AMK have a clear leading position. Zhongding acquired AMK for €130 million in May 2016, making it a leader in the air suspension industry. Since then, the company has set up Anhui Anmeike to accelerate the landing of AMK in China, and the current domestic motor production line and air supply unit assembly line have been completed. Air suspension products are the company's medium- and long-term strategic direction, and the company will make full use of AMK's technical advantages in traditional vehicles to achieve breakthroughs in domestic and foreign markets.
Both Continental and WABCO produce only a portion of their own hardware, and the rest is mined from outside. And AMK in the traditional car market, has also been a self-produced air supply unit, the procurement of other hardware, AMK itself can also do ECU control programs, at this stage in the domestic market, because the main engine factories are advocating decoupling, tend to develop their own ECU, on the one hand, the purpose is to reduce costs, on the other hand, hope that in the ECU control program in the main engine factory hopes to master their own initiative. Under such an industry trend, the company's development goal is to become a comprehensive supplier of hardware for idle suspension systems. The next step of the company will be to cut into air springs, electronic shock absorbers and other parts that have not yet been produced in-house, and is currently laying out air springs for commercial vehicles, and passenger car air springs will also be firmly promoted.
Company advantages: full accumulation of technology, AMK has been engaged in empty suspension assemblies for many years, and the market share is almost equal to that of the mainland and WABCO in overseas markets. With AMK's overseas presence, it is still possible to obtain a large number of vacant orders in overseas markets.
After amK localization, it has a price advantage and service advantage over foreign counterparts. After the opening of the Chinese market, due to the strong demand for cost reduction of OEMs, the company sought to increase the proportion of hardware self-production and reduce the price of hardware solutions. If the empty hanging assembly is localized, the price can be reduced, far lower than the price of the overseas supplier's plan of about 12,000 yuan. According to the survey, we believe that in the air supply unit, AMK's self-produced air compressor still has a 30% cost reduction space, but the rest of the parts in the air supply unit have less room for cost reduction. In addition, compared with foreign opponents, AMK has good service and faster response speed after localization, which is better than the domestic service of WABCO, Mainland China and other companies.
Compared with domestic competitors, zhongding's advantage mainly lies in having the core technology of the air supply unit. AMK has the technology of air supply units, one of the core of air suspension, and the lack of competitors with air supply unit mass production capabilities in China, so the company has a significant advantage in this segment. In addition, AMK has been engaged in empty suspension assemblies for many years, while there are currently fewer companies in China that have suspended assembly products, and the company has accelerated the pace of landing. We believe that the company is expected to make further breakthroughs in the field of air springs and electronic shock absorbers on the basis of the technology of the air supply unit.
We believe that in 2025, the air suspension penetration rate of models with a price of 200,000 to 500,000 is expected to reach more than 30%, and according to the estimation of the value of bicycles of 8,000 yuan, the domestic passenger car air suspension hardware market space is about 16 billion or more. AMK's market share in the air supply unit segment has remained above 50%. When the company masters the technology of air springs and electronic shock absorbers, it is expected that the company's market share in the overall field of air suspension will reach more than 30% in 2025.
In the future, Zhongding Co., Ltd. mainly has three incremental businesses, air suspension, cooling system, and lightweight. In addition to the large market for air suspension, cooling systems and lightweight also have greater certainty of growth.
In addition to air suspension, another growth core is the cooling line business, the company's cooling business from the market position, technology level in the global segment is in a high position. TFH, a subsidiary of the company, has been promoting the development and production of thermal management line products. On the basis of supporting the traditional thermal management pipeline, the company vigorously promotes the new energy vehicle thermal management pipeline system assembly business, and actively expands the application of new materials in products. The company vigorously develop the application of nylon pipe and TPV materials, compared with the traditional internal combustion engine pipeline, the application of new technologies can make the product light weight, low cost, flexible assembly, in addition to maintaining good NVH and flexibility. With its ability to innovate and rapidly innovate and technology, TFH is able to respond to changes in hybrid and fuel cell vehicles and is actively engaged in advanced development projects with several OEM customers.
We believe that the company's cooling business will also usher in a volume: on the one hand, the value of bicycles has increased significantly. The temperature control requirements of the new energy vehicle battery module are much higher than those of traditional cars, and the value of the cooling pipeline product bicycle is obviously improved, the value of the bicycle of the traditional car product is between 300-400 yuan, the value of the pure electric bicycle is between 700-800 yuan, the hybrid is 1200 yuan, and the value of the extender bicycle is about 1600 yuan. On the other hand, the proportion of new energy business has grown rapidly. In the company's cooling business, new energy currently accounts for less than one-third, and the new energy business accounts for more than 65% of the new orders in the next three to five years, and there is a greater upward trend in obtaining sufficient orders from new energy vehicle companies.
At present, the company's cooling pipeline system has a revenue scale of about 3 billion. Tristone, a subsidiary of Zhongding Co., Ltd., has a market share of 30% in Europe and 22% globally. At present, the company has supported new energy vehicle platforms such as BMW, Volvo, Audi, Volkswagen, Geely, Xiaopeng and Ideal. Conservatively assuming that the company's global market share remains unchanged, the cooling line system can reach 5 billion revenue in 2025. If the company's market share is further improved, we believe that the company's cooling system revenue will exceed 6 billion in 2025.
The company's lightweight business maintained rapid growth. The main lightweight products are swing arms, control arms, etc., and the core components are ball heads. In recent years, the company is vigorously developing chassis lightweight system assembly products, and the forged aluminum control arm assembly project has made breakthrough progress. The core technology of its subsidiary, Sichuan Wangjin Company, is a ball head hinge assembly product, which is the core safety component and performance part of the chassis system, and has a very high technical threshold. At present, the market share of the company's lightweight products is about 10%.
The company's lightweight business currently has a revenue scale of about 500 million, assuming that only existing products are considered, it is expected to obtain about 1.5 billion revenue by 25 years, and if more lightweight products are newly developed, there will be a higher level of revenue.
Sealing systems are the company's traditional business, and its subsidiaries KACO in Germany, Cooper in the United States, and ACUSHNET in the United States have the top three sealing system technologies in the world. KaCO actively promotes the new energy layout on behalf of the sealing system companies, and has successfully developed supporting high-performance new energy motor seals. At the same time, the company has developed mass production of new energy battery module sealing systems and bridge assemblies and other products, supporting volvo, WEILAI, SAIC, GAC and other new energy vehicle platforms. It is expected that the sealing systems business will maintain a relatively stable level.
4.3. Fuyao Glass
In the competition of the auto glass market, the victory and defeat have been divided, and the market share of Fuyao is expected to continue to rise. We believe that in the future, Fuyao will continue to devour the incremental market and encroach on the stock market of competitors with the momentum of victory. First of all, Fuyao focuses on automotive glass, and its gross profit margin, net profit margin, ROE, etc. are comprehensively superior to competitors, and the competitors' auto glass business has low profit margins or even losses. Fuyao continued to invest in high R&D, and the total R&D expenses of auto glass were 1.5 times and 5.5 times that of competitors Asahi Glass and Plate Glass, respectively. Secondly, under the epidemic test, the competitor's auto glass business has fallen into a certain crisis, and Fuyao's auto glass market share has jumped to the first place in the world, and with the continuous expansion of Fuyao in the North American and European markets, the market share is expected to further increase. Finally, cost control is the strongest competitiveness of Fuyao, Fuyao controls costs and expenses through collaborative coverage of upstream and downstream industrial chains, improves experience management efficiency, etc., and its cost control ability is far superior to that of its opponents.
New energy vehicles promote the expansion of the auto glass market, and Fuyao stands at the beginning of a new round of growth cycle. Canopy glass subverts the traditional design and is more in line with the needs of new energy vehicles for science and technology and futurism. At present, the canopy glass is rapidly penetrating, and the penetration rate of the panoramic canopy in new energy vehicles from January to October 2021 is about 23.2%, and it is expected to reach 55% in 2025. From the perspective of value increment, the price of automotive glass has risen together, and the ceiling glass is generally 1.5-2 square meters, while the value of the canopy single piece integrating coating insulation, intelligent dimming and other functions can reach up to 5000 yuan, while the price value of the HUD front windshield display glass can reach up to 1000 yuan. With the rapid increase in the penetration rate of canopy glass and HUD, the compound growth rate of the domestic auto glass OEM market size can reach more than 20% in the next 5 years.
SAM is still in a state of loss during the consolidation period, but it is decreasing from the previous month, and it is expected to start to be profitable in 2022, and the synergy effect with automotive glass in the future can be expected. Fuyao Glass has a very rich experience in production line scheduling and cost control, sam with the help of Fuyao's cost control experience is expected to turn losses into profits and obtain better development. Moreover, aluminum trim strips and automotive exterior trim parts have natural synergy, which can form a synergy effect in the production supporting links and customer expansion.
4.4. Roc Motors
The first label created by Xiaopeng Automobile for itself is "full-stack self-research", which is the foundation of Xiaopeng Automobile's intelligence. Full-stack self-research refers to the mastery of core capabilities including visual perception, sensor fusion, decision-making, planning and control. In the field of autonomous driving, Xiaopeng Automobile is the second car company in the world and the first in China to conduct independent research and development based on the open computing platform after Tesla. Full-stack self-development means that Xiaopeng Motors can lead the R&D rhythm of perception, decision-making, planning and control. Unlike many competitors who adopt Mobileye's closed solution, Xiaopeng Motors' vision solution adopts a self-developed model. The R&D perspective obtains technology accumulation, and has source data to support future iterations, and the tuning and OTA upgrade of the system has a good prospect. With its talent reserves and technology accumulation in the field of intelligent driving, Xiaopeng Automobile is expected to continue to iterate its advantages.
The second label that Xiaopeng Automobile has created for itself is "to make a smart car that understands China better". Compared with competitors, Xiaopeng mainly has choices that are more suitable for China's road conditions in many aspects, such as technical routes, algorithm styles, and Chinese road characteristics: From the perspective of technical principles, Tesla adopts a visual solution, and Xiaopeng and Weilai choose high-precision maps. In terms of algorithm style, Tesla's decision-making is more radical, Weilai's decision-making is more conservative, and Xiaopeng is in between, ensuring safety and speed at the same time. In terms of China's road conditions, Tesla is easy to be dissatisfied, and Xiaopeng Motors is more integrated into the local situation.
The third label of Xiaopeng Automobile is "software profit model". Xiaopeng Q1 financial report confirms revenue for the first time for its self-driving software XPILOT. Although from the perspective of amount, the software revenue is temporarily smaller than the overall revenue, but it reflects Xiaopeng's leading position in the industry in autonomous driving software subscriptions, showing new profit growth space. In this era of software-defined vehicles, relying on software charges has gradually become a trend recognized by car companies, and software can open up more potential gross profit imagination space for new energy vehicle companies. At present, most automakers realize revenue through car networking services. In contrast, Xiaopeng Automobile is the first automobile manufacturer to realize the separate charging of full-stack self-developed automatic auxiliary driving software, and it is also the first new energy vehicle manufacturer in China to confirm software revenue. The realization of XPILOT software will become a continuous source of revenue and profit for Xiaopeng Automobile in addition to the sales of vehicle hardware.
——END——
[Xing Yanjun.]
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