On December 15, China's Ministry of Industry and Information Technology officially announced the first batch of conditional L3 autonomous driving vehicle approvals, marking a critical step from testing to commercial application. Great Wall Securities noted that this approval signifies China's entry into a high-speed development phase for autonomous driving. The industry is steadily advancing toward higher-level autonomous driving, while policy frameworks are expected to evolve to support broader L3 adoption. The report highlights that breakthroughs by leading domestic and international manufacturers will accelerate industry growth, with advanced autonomous driving technologies gradually becoming accessible in vehicles priced between 100,000 and 200,000 yuan.
Changjiang Securities emphasized that China has become the second country after Germany to approve L3 autonomous driving, with the approved models already on the market, positioning China as the first nation to implement L3 at scale. This milestone indicates a new phase of mass production for intelligent connected vehicles, with regulatory frameworks likely to improve further, accelerating large-scale commercialization and benefiting the entire supply chain. Key investment opportunities include: 1. Autonomous driving algorithm providers 2. Hardware suppliers for autonomous driving 3. Robotaxi operation platforms
Huatai Securities pointed out that the approval of L3 models will shift the industry from pilot testing to product deployment, driving value chain restructuring. By 2026, autonomous driving is expected to emerge as a major AI application, with investment opportunities in smart vehicles, wire-controlled chassis, domain control chips, and LiDAR.
**Relevant Hong Kong-listed stocks in autonomous driving:** - **JOYSON ELEC (00699):** Its subsidiary, Junlian Zhixing, signed a strategic agreement with Sinian Zhijia to collaborate on L4 autonomous driving solutions and embodied intelligence domain control, with a smart port digital management platform already operational in Ningbo Port. - **SERES (09927):** Launched four models (M5, M7, M8, M9) targeting the premium market with differentiated positioning. - **CAOCAO INC (02643):** Its autonomous driving platform, "CaoCao Zhixing," went live in February 2025, marking the start of Robotaxi operations, with next-gen Robotaxi deployments underway. - **LEAPMOTOR (09863):** Began nationwide deliveries of its Lafa5 model, featuring dual AI models and LiDAR perception. - **HORIZONROBOT-W (09660):** Partnered with ZF to develop an L3 autonomous driving system for the Chinese market, targeting mass production by 2026. - **MINIEYE (02431):** Expanded into unmanned logistics with T5 and T8 models, extending autonomous tech to cargo scenarios. - **BLACK SESAME (02533):** Its A1000Pro chip (106 TOPS) powers models like Geely’s Galaxy E8, with cross-domain chip C1200 set to boost revenue. - **SEYOND (02665):** A leading LiDAR supplier, ranking fourth globally in ADAS LiDAR revenue with a 12.8% market share in 2024. - **HESAI-W (02525), ROBOSENSE (02498):** Key LiDAR players. - **NEXTEER (01316):** Invested 1 billion yuan in an Asia-Pacific smart manufacturing hub focusing on NEVs and autonomous driving, featuring advanced steering tech.
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