The recent announcement by BYD concerning its comprehensive integration of the “Tian Shen Zhi Yan” advanced driving assistance system across all its 21 car models has stirred notable conversation within the automotive industryFollowing this declaration, Yu Chengdong, an executive director at Huawei, took to social media to express his views on intelligent driving technologiesHis remarks emphasized the stark contrast between “adequately usable” systems and those deemed superior in safety and usability, revealing Huawei's perception of an inherent advantage in its own intelligent driving solutions, particularly within urban environments.

Simultaneously, Wei Jianjun, the chairman of Great Wall Motors, publicly criticized the prevalent trend of flashy demonstrations of intelligent driving technologyHe advocated for a more earnest approach, asserting that true innovation should effectively meet consumers' frequent travel needs rather than merely serve as a performance spectacle.

Regardless of the varying perspectives on BYD's strategy, it is becoming increasingly evident that the price barrier for intelligent driving technologies is falling dramaticallyFollowing BYD’s announcement, the entry price for advanced driving systems in their lineup dropped from 150,000 yuan to a staggering 70,000 yuanThis significant shift prompted rapid reactions from other industry players; for instance, Huawei's collaboration with SAIC was unveiled, potentially reigniting the ES37 project under the Feifan brand, with two models expected to carry price tags between 170,000 to 250,000 yuan, both utilizing Huawei's smart selection modelSimilarly, Changan’s Deep Blue brand has proclaimed its goal of popularizing intelligent driving among all consumers, offering substantial promotional discounts—up to 23,499 yuan.

Industry insiders from domestic electric vehicle manufacturers speculate that the prices for intelligent driving systems will continue to decline

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The trend of providing enhanced features without additional charges is gaining traction among various car manufacturersWhile the widespread adoption of smart driving systems may elevate product competitiveness, it may also further squeeze profit marginsIn this emerging landscape of technological competition, only companies capable of achieving substantial scale will manage to maintain profitability.

BYD’s audacious move has essentially reshaped the dynamics around intelligent driving accessibility.

Recently, BYD revealed its plan to equip all 21 of its models with the “Tian Shen Zhi Yan” advanced driving systemThis includes the affordable BYD Seagull, which starts at just 69,800 yuan and boasts capabilities such as high-speed Navigation on Autopilot (NOA) and automated parking featuresThe company's chairman, Wang Chuanfu, boldly proclaimed 2025 as the “Year of Intelligent Driving” and anticipated that within the next few years, advanced driving systems would become as ubiquitous in vehicles as seat belts and airbags.

According to BYD representatives, the “Tian Shen Zhi Yan” system comprises three versions—A, B, and CVersion A, a three-laser system (DiPilot 600), is mainly utilized in high-end modelsVersion B is a two-laser model (DiPilot 300) featured primarily in Tang and other BYD offeringsThe C version is instrumental in the BYD Seagull, effectively employing a visual system through a network of twelve cameras, five millimeter-wave radars, and twelve ultrasonic sensors, altogether bypassing the need for laser radar.

The market consensus is that BYD, while initially refraining from participating in the previous round of price cuts, has effectively ignited a price war through its strategy of increased features at no additional costThis dramatic reduction in the cost of advanced driving systems is poised to accelerate the technology’s uptake within the entire industry, making intelligent driving feasible for a broader audience.

The day following BYD's announcement of its intelligent driving strategy, other automotive manufacturers began to mobilize their responses

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Wei Jianjun criticized the superficiality of “intelligent driving shows,” asserting that ensuring safety and covering frequent driving scenarios should take precedenceHe reaffirmed that Great Wall Motors is dedicated to pursuing an unparalleled user experience and safety standards.

Changan has also opted to enter the fray; besides their earlier announcements regarding plans to equip vehicles priced at 100,000 yuan with laser radars by August, the Changan Deep Blue brand actively promoted its newest S05 model with the slogan encouraging widespread accessibility of intelligent driving features, offering discounts up to 23,499 yuan.

The discourse surrounding intelligent driving isn't confined solely to traditional automotive manufacturersHuawei, as a partner in cross-industry collaborations with automakers, plays a pivotal role by providing technological capabilitiesYu Chengdong’s comments reiterated the essential difference between adequate functionality and genuinely effective systems in the realm of intelligent driving.

There’s a notable pattern in the evolution of the domestic electric vehicle market: when one company takes a significant step, others inevitably follow suit, whether proactively or in response to market pressuresEven Huawei, with its Harmony OS and intelligent offerings, might have to implement pricing strategies aimed at achieving lower price points for consumersReports indicate that Huawei and SAIC could be collaborating on vehicles priced between 170,000 and 250,000 yuan; notably, the Feifan ES37 models are expected to employ the Huawei ADS 3.0 Lite version, delivering around 80% functionality to directly compete with BYD's QinPLUS intelligent driving version.

Industry insiders anticipate further decentralization of intelligent driving capabilities as an unstoppable trendThe battle for market share goes beyond just technological pathways but extends to competitive ecosystemsThe ongoing power struggle between car manufacturers and suppliers is set to intensify significantly.

However, the quest for intelligent driving doesn't come without risks; the pressure to maintain profit margins may undermine long-term viability

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The shift towards lower pricing for intelligent features may transform the competitive landscape and affect market dynamics adverselyThe introduction of intelligent driving systems at price points as low as 70,000 yuan has sparked discontent among existing vehicle owners, some of whom took to social media to express feelings of betrayal by manufacturers.

In the coming months, this sentiment might persist; insiders from domestic electric vehicle companies acknowledge that BYD's pricing strategy will likely compel competitors to follow suitAs the push for enhanced features without increased rates intensifies, many firms are expected to act swiftly to remain competitiveThis translates to a price war expanding from merely electric vehicles to encompass intelligent driving systems, exacerbating existing pressures on industry profitability.

The profitability of the electric vehicle sector has significantly dwindled, dropping from 8.3% in 2020 to an anticipated 4.3% by 2024 due to previous pricing tacticsThe impending clash over pricing for smart features could further burden large automotive firms, especially as new budget models equipped with intelligent driving functions threaten to trim down existing profit marginsAdditionally, for companies yet to achieve operational scale and profitability, the continuing compression of profits could magnify financial challenges; this pressure could also extend upstream, prompting a reevaluation of the entire industry supply chain.

In the first half of the previous year, Yu Chengdong openly criticized the exorbitant costs associated with intelligent driving systems, suggesting only vehicles priced above 300,000 yuan could facilitate these technologiesThis viewpoint sharply contrasts with BYD’s recent decision to adopt intelligent systems for its A00 class models.

So where do the costs of intelligent driving arise? Industry experts highlight that while hardware costs are relatively stable—both millimeter-wave radars and cameras are becoming increasingly affordable, laser radars still remain expensive—the true expenses mainly stem from the development of computing power, algorithms, and specialized software

Additionally, ongoing operational costs linked to software updates and over-the-air services pose challenges; some manufacturers are resorting to user subscriptions to alleviate upfront costs, while others absorb these expenses directly into the vehicle price.

These insights suggest an important distinction: if the market for intelligent driving evolves towards significantly lowered prices across entry-level models, the true winners will likely be those manufacturers capable of scaling production efficiently to realize profitCompanies without the capacity to spread out development costs might face severe losses in the short termTherefore, the vital question for every manufacturer is how to maintain product quality and technological advancement while effectively managing expenses to reach a sustainable scale of operations.