NVIDIA (NVDA.US) announced at this week's CES that its global DRIVE Hyperion ecosystem is expanding, incorporating multiple Tier 1 suppliers and sensor partners, including Bosch and Hesai-W (02525). The DRIVE Hyperion platform, developed by NVIDIA, integrates computing, sensors, and safety features, aiming to propel automakers and the autonomous driving software ecosystem towards mass production. Having accumulated substantial experience in R&D and large-scale production within the Chinese market, domestic autonomous driving suppliers are well-positioned to accelerate their entry into the global market through NVIDIA's ecosystem.
NVIDIA is broadening its autonomous driving collaboration network, presenting significant international expansion opportunities for leading Chinese suppliers. The DRIVE Hyperion platform integrates computing, sensors, and safety functionalities with the goal of advancing automakers and the autonomous driving software ecosystem towards mass production. Partners in the open production architecture of DRIVE Hyperion span all aspects of autonomous driving, including perception, decision-making, and execution layers. Among them, Chinese Tier 1 supplier Desay SV and Hesai-W (02525) are both certified partners adapted for this platform. With deep expertise gained in the Chinese market, domestic autonomous driving suppliers are poised to leverage the NVIDIA ecosystem to accelerate their global market penetration.
The pace of global autonomous driving development is accelerating, with industry leaders both domestically and internationally ramping up their investments in the sector. At CES, NVIDIA introduced the Alpamayo open-source VLA AI algorithm and outlined plans to launch Level 4 Robotaxis by 2027. Tesla has already commenced commercial operations of its Robotaxi service in cities like Austin in the second half of 2025 and plans to mass-produce the Cybercab in 2026. Pony.ai has deployed a fleet of over a thousand Robotaxis, while WeRide is focusing on the Middle East market and is gradually approaching unit-level breakeven in Abu Dhabi. As companies like NVIDIA and Tesla (TSLA.US) overseas, and Pony.ai-W (02026), WeRide-W (00800), and XPeng-W (09868) in China accelerate their autonomous driving deployments, the global market for intelligent driving is expected to unlock further growth potential.
The penetration rate of high-level autonomous driving in China has passed an inflection point, and leading companies across the domestic smart driving supply chain are positioned to compete globally. CICC believes that the rising penetration of high-level autonomous driving is driving the development of the entire industry chain. It is anticipated that as the adoption of L3 and L4 level autonomous driving increases, the per-vehicle value of associated hardware and software will rise. Coupled with leading suppliers accelerating their entry into overseas markets, top companies in various segments of China's smart driving industry are expected to enter a cycle of simultaneous volume and price growth.
Potential risk factors include autonomous driving technology development falling short of expectations, intensifying industry competition, and potential policy changes.
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