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3、cision.Refer to important disclosures on page 93 to 96.Analyst Certification on page 86.Price Objective Basis/Risk on page 78.12847372 Greater China Auto,EV and EV battery(H/A)Who makes the smart car?Industry Overview Intense competition drives Chinas smart car revolution While news of BYD integrati

4、ng its Gods Eye ADAS system into even mass-market models surprised the global markets last February,Chinas push into smart cars started much earlier.In 2021,XPeng launched its highway Navigate on Autopilot(NOA)solution,and from 2022 to 2024,major EV brands were gradually applying autonomous driving(

5、AD)solutions to high-end models,with Li Auto and Huawei broadly considered best-in-class brands.BYDs move is now spurring yet more OEMs,such as Geely,Chery,and Leapmotor,to follow suit,accelerating Chinas AD adoption.L2+/L3 penetration 80%by 2030E;25%sales volume CAGR ADs penetration rate in China h

6、as been fueled by EV and AI technology co-development.The algorithm upgrade from rule-based models to E2E+VLM/vision-language-action(VLA)models as well as hardware advancements in sensors,chips,chassis,etc.enable better perception of complex scenarios and faster data processing.We expect Chinas L2+/