As the world spins into the year 2025, a notable shift occurs within the automotive industry in ChinaThe focus has gradually moved from mere pricing strategies to the intricate realm of intelligent driving technologyThe stakes have elevated as manufacturers vie for supremacy not only in terms of competitive pricing but through sophisticated enhancements in their vehiclesThe quest for “intelligent driving equality” has become a cornerstone of contention between leading automakers, prompting a revolution in consumer accessibility to advanced technology in lower-priced models.

On February 10, 2025, one of the major players, BYD, unveiled its high-tier intelligent driving system known as “Tian Shen Zhi Yan” (Heavenly Eye). Remarkably, this system is set to be integrated into a model priced as low as 69,800 yuan (approximately USD 10,000). This groundbreaking move allows for enhanced automated driving capabilities to reach a broader audience, a thematic signpost denoting the shift towards more inclusive technological offerings.

Continuing in this vein, Huawei held a technology showcase for its luxury vehicle “Zun Jie” on February 20, targeting a market segment above the one million yuan markThe centerpiece of this event was the L3 level intelligent driving that promises to transition from passive to autonomous intelligenceThis stark divide exemplifies a dual competitive landscape emerging within the industry; one side drives down costs in the mid-tier market, while the other relentlessly pursues high-end innovation and performance.

Experts like Gong Min from UBS have offered insights, suggesting that the ultra-high-end automotive market in China is relatively smallMajor brands are not merely introducing extravagant luxury models for sales’ sakeInstead, their goals are two-fold: to enhance the brand image for mid-range vehicle lines and to test cutting-edge, cost-intensive technology, gathering valuable insights for future applications within more affordable models.

The automotive pricing war, which traditionally emphasized cost reduction, has now pivoted toward adding functionalities and improving product offerings

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Gong Min remarked that while industry discussions previously centered around mere price cuts, the narrative has shifted to one where added value — through intelligent driving systems — constitutes a new battleground.

Recent developments affirm this trendFor instance, on February 9, Changan Automobile launched the “Beidou Tian Shu 2.0,” paving the way for a change where advanced driving systems are no longer perceived as a luxury but as a standard expectation across all market tiers, with plans to include laser radar on models priced around 100,000 yuan.

BYD's announcement of a comprehensive intelligent driving strategy remarkably asserts that all its models will integrate the high-end “Heavenly Eye” systemThis includes entry-level models starting from 69,800 yuan, thus creating significant coverage in the mainstream price bracket, tapering between 100,000 to 200,000 yuanMeanwhile, GAC’s partnerships with technology providers like Momenta and Suitung Junction are aimed at enhancing cost efficiency and expanding the deployment of intelligent systems.

Such technologies are not merely flashy features but are designed to meet everyday functional requirementsThe Heavenly Eye system, deployed by BYD, is primarily vision-based, with select versions incorporating laser radar technologyWith over 440 million data points from vehicles, it has achieved maturity in high-speed scenarios, boasting features that include real-time traffic monitoring, autonomous lane changes, and potential hazard avoidanceHowever, urban conditions are still unfolding, representing an ongoing development curve.

The debate over intelligent driving is more than an industry trend; it signals an upcoming pivotal moment in China’s automotive landscapeTsinghua University's DrZhang Kang-Kang highlights that the backbone supporting the assertion of “smart driving equality” stems from a mature supply chain and talent pool within the Chinese intelligent driving sector

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This maturity manifests in rapidly falling costs of intelligent driving systems, making advanced technologies more accessible to broader audiences.

Industry analysts indicate that as various brands ramp up their high-end models, the L2+ higher-tier intelligent driving system penetration, which was only 8.5% in 2024, is projected to surge past 30% with increased model releases, particularly from brands like BYD and others in successionThe dawning of this “everybody has a smart drive” age presents numerous opportunities, as firms align their ambitions towards meeting heightened consumer expectations around functionalities like automatic parking and adaptive cruise control.

Simultaneously, another competitive angle arises within the luxury marketOn February 20, after BYD’s announcement, Huawei held a product launch for their premium “Zun Jie S800” model, crafted with a focus on fully integrating L3 automated driving capabilitiesThis model serves to elevate consumer experience in the ultra-luxury segment.

The resonance of Huawei’s tagline regarding intelligent driving carries weight; “Adequate can still be used, and excellent must be safe." Highlights of this event revealed a new technological platform termed the Tuling platform, boasting a host of radical enhancements including mixed-sensor capabilities and unprecedented integration of environment perception and route planning.

Although advancements are paving the way for enhanced driving experiences, regulatory frameworks remain a crucial challenge, as current restrictions confine almost all intelligent systems to L2 levels of driving assistanceThis significantly limits broader applications, even preventing solutions like Huawei’s automated driving system from fully unleashing their potential in real-world environments.

As the varied trajectories in the automotive landscape evolve through both mid-range accessibility and unprecedented luxury offerings, the fundamental question remains: can these advancements translate into market acceptance? Consumer perceptions and market validation will ultimately dictate the direction of intelligent driving technology

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