In the field of intelligent driving, domestic car companies have led the industry in innovation and application over the past few years. They adopted open and aggressive strategies. Take NOA, which represents advanced intelligent driving capabilities. According to the Gaishi Automotive Research Institute, the cumulative supply of high-speed NOA in the domestic market reached nearly 1.1 million sets from January to September this year. This corresponds to a penetration rate of 7.1%. Urban NOA has also begun large-scale deployment, with a penetration rate of 1.3%. Among brands, Tesla leads, while most others are domestic companies. At the same time, mainstream joint venture car companies are accelerating their efforts. They aim to catch up in advanced intelligent driving and close the gap with domestic brands. Recently, several joint venture companies, including Dongfeng Nissan, GAC Toyota, and FAW Audi, announced their latest plans and progress in advanced intelligent driving. They are making a strong push to join the “first tier” of intelligent driving. To break through in advanced intelligent driving, joint ventures are collectively “upgrading.” Recently, at the 2024 Guangzhou Auto Show, Dongfeng Nissan announced a partnership with Momenta to develop a leading advanced intelligent driving solution based on an end-to-end intelligent driving model.
Currently, the two companies have developed an end-to-end advanced driving system, which is now featured in the Dongfeng Nissan N7. This system supports high-speed navigation (NOA) and full-scene parking. It uses Momenta’s deep learning algorithms and will soon enable “urban memory navigation (NOA).” Dongfeng Nissan is the second joint venture to announce progress with Momenta. The first is GAC Toyota. In June, GAC Toyota and Momenta announced their collaboration on an end-to-end advanced driving system. This system will debut in the Platinum Smart 3X model. At that time, they revealed that the system uses Momenta’s latest algorithm 5.0. It will provide a full-scenario advanced driving experience covering parking, highways, and urban areas. Recently, the Platinum Smart 3X was showcased at the Guangzhou Auto Show. It features 27 sensors, including one LiDAR, and combines with NVIDIA’s Orin-X. This setup supports high-speed and urban INP navigation assistance, along with over 200 automated parking scenarios. The Platinum Smart 3X plans to launch in the first quarter of 2025. In the smart driving field, GAC Toyota began its layout early. Currently, all GAC Toyota models feature the L2 smart driving system. Additionally, GAC Toyota partnered with Toyota China and Pony.ai to form ZF Smart. They aim to advance Robotaxi development. The launch of the Platinum Smart 3X marks GAC Toyota’s official establishment of a multi-dimensional layout in smart driving. This includes L2 smart driving, L2++ end-to-end all-scenario smart driving, and L4 Robotaxi. Besides Japanese joint ventures, German and American brands also compete in high-level smart driving. At the end of 2023, Mercedes-Benz equipped the long-wheelbase E-Class with an L2+ navigation-assisted driving system developed by a Chinese team. Recently, they conducted a beta test of their no-map L2++ all-scenario high-level smart driving in Shanghai. The vehicle traveled 21 kilometers in 50 minutes without any driver takeover. In terms of configuration, Mercedes-Benz’s no-map L2++ system uses the Nvidia Orin chip. The algorithm evolved from rule-based logic to an end-to-end model. It supports various point-to-point smart driving functions without relying on lidar or high-precision maps. According to Mercedes-Benz’s plan, the no-map L2++ system will first appear on the new all-electric CLA next year.
Mercedes-Benz has achieved significant milestones in advanced autonomous driving. It has already mass-produced the L2+ system and plans to mass-produce the L2++ system soon. The company received the L3 road test license from Beijing. It also obtained L4 city and expressway test licenses. This establishes a comprehensive presence in China. Audi has partnered with Huawei. In October, Audi announced that the new A5L will feature Huawei’s smart driving system, replacing the A4L. The A5L will be produced by both FAW Audi and SAIC Audi. The SAIC A5L will launch in early 2025, while the FAW version will arrive in mid-2025. Both models will include Huawei’s ADS system, but it is unclear whether they will use ADS 2.0 or ADS 3.0. Additionally, the Q6L e-tron is also expected to feature Huawei’s smart driving system. Audi and Huawei announced their collaboration on L4 autonomous driving back in 2018. However, they had not engaged in deep cooperation in mass-produced ADAS until now. The launch of the A5L marks Huawei’s official entry into Audi’s mass production smart driving network. It also represents a significant milestone for Huawei’s smart driving technology in joint ventures and fuel vehicles. In the American camp, SAIC-GM has also made key breakthroughs in smart driving this year. Recently, the 2025 Century officially launched. The vehicle features the SAIC-GM NOP intelligent navigation system. This system went live in July. It uses self-developed algorithms and high-precision maps. SAIC-GM NOP supports L2+ functions in various scenarios, including highways, overpasses, and urban expressways. It covers 348 cities in China. SAIC Volkswagen, FAW-Volkswagen, and Dongfeng Honda also accelerate the adoption of intelligent driving systems. They focus on implementing high-level L2++ intelligent driving applications. Overall, leading automakers no longer stick to conservative strategies for intelligent driving features. They now incorporate high-performance NVIDIA Orin chips, lidar, and end-to-end algorithms. These elements show their commitment to accelerating the transformation towards intelligence. Not only electric vehicles, but also gasoline vehicles need to become intelligent. In terms of intelligent driving strategies, joint venture brands generally promote multiple powertrains and integrate intelligence in both gasoline and electric vehicles. They advance the intelligentization of gasoline vehicles while developing smart electric cars. For example, Dongfeng Nissan’s N7 serves as a breakthrough for high-level intelligent driving. This pure electric sedan is the first model under Dongfeng Nissan’s new energy technology framework. It represents a new attempt in the fields of intelligence and electrification. GAC Toyota’s Platinum Smart 3X, the new all-electric CLA with Mercedes’ first L2++ system, and FAW Audi’s upcoming Q6L e-tron with Huawei’s smart driving all use electric power.
The reasons are clear. Compared to fuel vehicles, electric vehicles respond faster. They offer precise power control and ample electrical support. Their hardware and software architecture integrates better with smart driving systems. Over the past few years, many have deemed them the best platform for intelligent driving. Many electric vehicles consider smart driving system integration from the start. Many automakers choose them to deepen their smart driving strategies. Ouyang Minggao, an academician at the Chinese Academy of Sciences and a Tsinghua University professor, stated that internal combustion engine control cannot match the precision and response speed of electric motor control. This limits their autonomous driving capabilities compared to electric vehicles. Lantu Motors CEO Lu Fang also noted that intelligence relies on rapid advancements in electronic technology, accelerated chip and communication upgrades, and continuous algorithm iterations. Fuel vehicles need electronic technology development to become smart cars. However, fuel vehicles face inherent weaknesses, such as slow system response and insufficient redundancy. This slows their progress in smart technology. Fuel vehicles are not the best platform for intelligent systems. For complex advanced smart driving systems, fuel vehicles struggle even more. Yet, electric vehicles provide strong foundational support for smart driving. A significant fact remains: both end consumers and automakers still demand high levels of intelligence in fuel vehicles. Fuel vehicles still hold a large market share and have a vast user base, especially for joint venture automakers. Thus, alongside embracing new smart electric vehicles, joint venture brands continue to support fuel vehicle intelligence development.
Volkswagen pushes forward with the intelligent upgrade of the ID family. It collaborates with Zhaoyu Technology. Together, they have equipped several fuel vehicles, including the SAIC Volkswagen Passat Pro, SAIC Volkswagen Tiguan L Pro, FAW Volkswagen New Magotan, and FAW Volkswagen Tayron L, with the jointly developed L2+ level IQ.Pilot intelligent driving assistance system. They promote “intelligent fuel and electric synergy.” Mercedes-Benz introduces the L2+ high-speed intelligent navigation system in its long-wheelbase E-Class fuel vehicle. According to Wang Xin, executive vice president of Mercedes-Benz Investment Co., Ltd., the company plans to gradually equip more fuel models with advanced driving systems. Upcoming models like the new long-wheelbase GLC SUV and the 2025 GLC Coupe SUV will feature the L2+ system. Audi China president Johannes Roscheck stated that starting in 2025, the advanced intelligent driving assistance system with Huawei technology will apply not only to new cars built on the PPE luxury electric platform for the Chinese market but also to new cars on the PPC luxury fuel vehicle platform. However, fuel vehicles face challenges in implementing intelligent driving. They must overcome obstacles like power supply issues. Additionally, they need to make extra efforts for precise control. Compared to electric vehicles, fuel vehicles require higher precision in power control. This is because they need a high integration of the engine, transmission, brakes, and recognition systems, said Zhu Yong, deputy general manager of SAIC Passenger Vehicles. For example, when a driver encounters an obstacle, the fuel vehicle’s smart driving system must detect and calculate in advance. Otherwise, the engine, transmission, and brake systems have less time to respond than in electric vehicles. This challenges automakers’ capabilities in pre-processing and pre-diagnosis. In other words, joint venture automakers must invest more R&D resources and technical efforts in fuel vehicles to truly bridge the gap between fuel and electric platforms and achieve “smart driving equality.” High-level smart driving gives joint ventures confidence. Many see the current domestic smart driving market as “strong in domestic brands, weak in joint ventures.” However, after several years of rapid development, both domestic and joint venture brands have built a strong market foundation in smart driving. According to data from the Gaishi Automotive Research Institute, from January to September this year, the domestic L2 system’s installation in the front market reached 7.041 million units, with a penetration rate of 48.6%. Last year, it just surpassed 40%. The increase in L2++ installations is particularly noticeable. Looking at different factions, the L2 penetration rates for Japanese and American brands have both exceeded 60%. In the first three quarters, their L2 installations reached 1.316 million units and 623,000 units, respectively. Toyota leads foreign brands with 924,000 units, achieving a penetration rate of 85.7%. Honda also supplied 332,000 sets. The L2 penetration rate is 55.2%.
Compared to independent brands, the overall penetration rate is slightly lower. From January to September, L2 systems equipped about 4.15 million vehicles, with a penetration rate of 45.6%. This is mainly due to the large sales volume of independent brands. According to the latest statistics from the China Association of Automobile Manufacturers, from January to October, Chinese brand passenger cars sold 13.849 million units, capturing a market share of 64.6%. European brands show even lower numbers. From January to September, L2 ADAS systems equipped 954,000 units, resulting in a penetration rate of 31.2%. SAIC Volkswagen, as a representative of European brands, equipped 693,000 L2 systems in the first three quarters. This ranks second among foreign brands, but the L2 penetration rate is only 47.6%. However, this also indicates significant room for improvement. Currently, joint venture brands mainly offer L2 models. In the advanced L2+/L2++ driving assistance sector, overall strength still needs enhancement. At present, joint venture automakers are accelerating their breakthroughs. They employ multiple strategies, including lower-tier and higher-tier systems, gasoline and electric vehicles, as well as independent development and collaboration. They are gradually securing a position in the advanced driving assistance field. In the NOA sector, data from the Gaishi Automotive Research Institute shows that from January to September this year, Mercedes ranked fifth among the top 10 car brands with standard NOA features, installing 68,000 sets. It surpassed many traditional domestic car companies, including local new energy brands. Joint ventures benefit from strong technical expertise and financial power. Over decades, they have built a vast user base in China. Once they ramp up production, they can gain a significant competitive edge in data integration. This foundation supports their ongoing development and upgrades of intelligent driving systems. Faced with the rapid advance of domestic brands, foreign car companies are increasing their research efforts in China. They are expanding local R&D teams and collaborating closely with domestic intelligent driving suppliers like Huawei, Momenta, Zhaoyu, and Horizon. These partnerships have successfully integrated into the joint venture supply chain, providing strong momentum for the push towards greater intelligence. Volkswagen collaborates with Zhuoyue in the fuel vehicle sector. It also established CARIAD China. Through CARIAD, it formed a joint venture with Horizon called “Cool Core.” This venture advances local research and development in autonomous driving. Currently, Volkswagen has over 7,000 R&D personnel in China.
The L2+ system from Mercedes-Benz launched in China. A local team led its development. The project took just 12 months from start to finish. In the past five years, Mercedes-Benz invested 10.5 billion yuan in R&D in China. In April, Mercedes-Benz opened a new building at its Shanghai R&D center. This center focuses on smart connectivity, autonomous driving, and software development. Notably, joint venture brands excel in the domestic market. They practice the “In China, For China” concept while also using local R&D results to benefit overseas markets. This supports the “In China, For Global” initiative. We can expect that joint venture brands will continue to advance in smart driving. Leading smart driving suppliers will also penetrate joint ventures after conquering independent brands. This trend may reshape the domestic and global smart driving market.