ExaminingBYD’s

“SmartDrivingforAllOffensive”

InsightsonCarPurchase

Desicion–SmartDriving(2025)

TengYiResearchInstitute

Authors

LijunZhou

Director/ChiefAnalyst

zhoulijun1@

YingGao

IndustryAnalyst

gaoying1@

BenyaShi

IndustryAnalyst

shibenya@

Desireforsmartdriving:buyerpreferenceonvehicle’sabilitytoachievesafer,moreconvenientandmorecomfortabledrivingthroughhardware/softwaresuchashigh-defsensor,algorithmandcompute

Asofearly2025,thecontroversysurroundingtheconceptofsmartdrivingremainedsignificant.Some

peoplebelievethattheterm“smartdriving”issimplyamarketinggimmickbecause“smart”could

meanalotmorethanjusttechnologyandisaloosetermthatlacksrigor.Fromatechnologyperspective,smartdrivingmainlycoversspecificfunctionssuchasassisteddrivingandHMI.Thesefunctionshave

beensomewhatpopularizedinthepast,sotheconceptofsmartdrivingisreallysomethingthat’snotdisruptive,butratheroptimizedandintegrated.Thereismorediversionintermsoftechnologyroadmap:

wheresomemayprefertheuseofLiDARsandemphasizecomplexroadconditionsinChinaandothersmaypreferavision-onlyapproachandemphasizepracticalitywhenitcomestosensorsuites.Similar

diversionexistsintermsofvehicleplanningandcontrol;

Whiledebatecontinuesintermsoftechnologymaturationandchoosingoneroadmapoveranother,whatmattersattheendofthedayistheimprovementinuserexperienceinareassuchassafetyandcomfort.TengYiResearchInstituteprimarilyconductsconsumerresearchanddoesnothavethewherewithalto

debateabouttherightorwrongtechnologyroadmapnorarewequalifiedtocritiquetechnologymatura-tion.Therefore,wewillfocusondefiningsmartdrivingintermsofthreekeywordsassociatedwithuser

experience:safety,comfortandconvenience.Though“smartdriving”hasbecomesomewhatofa

modifier,butithasinadvertentlybecomeaninfluentialtermonline.Tobettercommunicatewithour

readers,wewillalsousetheterm“smartdriving”butforthepurposeofthisreportitspecificallyreferstoassisteddriving(includinghighlevelsofassisteddriving).Afterbalancingprosandcons,wedefinedesireforsmartdrivingasbuyerpreferenceonvehicle’sabilitytoachievesafer,moreconvenientandmore

comfortabledrivingthroughhardware/softwaremeanssuchashigh-definitionsensors,algorithmsandcompute;

ThisreportismainlybasedononlineresearchfromTYRIwithmorethan70,000datasamplesin2024andreferencesTengYiBigDataandTYRIofflineresearchdata.

DesireforSmartDrivingSchematic

HDSensor

HMIHDMap

DesireforSmart

Driving

Convenience

SmartChassis

Others

Safety

Comfort

Algo/Compute

The“smartdrivingforalloffensive”fromBYDcameoutof

nowhereinearly2025andcaughtcompetitorsoff-guardas

“smartdrivingconsumptionboom”quicklytakesindustrybystorm

China’s“smartdrivingconsumptionboom”intensifiedoverthepast5-6yearsafterTeslabeganlocalproductionin2020,whichrapidlyignitedChineseconsumers’passionforsmartdriving.TheemergenceofnewindustryplayerssuchasHuawei,Xpeng,NIOandLiAutofurtheracceleratedthatboom.From

2020to2024,thedesireforsmartdrivingfromChinesecarbuyersrosefromlessthan10%tonearly40%astheChinesecarmarketquicklybecamethebiggestfertilegroundintheworldforthepopularizationofsmartdriving.Carmakersthatputlotsofeffortsintosmartdrivingthenexpectedtheperiod2025-2026tobeagoldenharvestingseasonbecauseofthe“smartdrivingconsumptionboom,”yetallofasudden

havetodealwithBYD’s“smartdrivingforalloffensive”announcedinearly2025;

Priorto2025,therapidemergenceofthe“smartdrivingconsumptionboom”andthemeteoricriseof

BYDinChinaneverintersected.BYDChairmanWangChuanfuhademphasizedbackin2018thatthe

firsthalfofcompetitionforBYDwaselectrification,andthesecondhalfwouldbesmartification.Overthepastfewyears,smartification-focusedcarmakerssuchasthosewithHuaweiinsidenevertookBYDasaseriouscompetitor.ButthatchangedonFebruary10,2025,whensmartdrivingbecameanewlabelfor

BYDasitannouncedasurprising“smartdrivingforalloffensive”thatincludedsmartdrivingeditionsfor

21modelsunderitsnamesakebrand,includingthesub-RMB80,000Seagullsmartdrivingedition.“Rightnow,carsthatareequippedwithsmartdrivingfeaturesoftencostmorethanRMB200,000,synonymouswithhighprices.In2024about70%ofthecarssoldinChinawerepricedbelowRMB200,000,soa

majorityofbuyersdonothavetheopportunitytoexperiencesmartdriving,asonly10%ofthecarssoldintheyearhadhighlevelsofsmartdriving,”saidWang.“Highupfrontcostisthebiggestbarriertothe

popularizationofsmartdriving.Goodtechnologyshouldbeavailabletoall,thereforeBYDwantstooffersmartdrivingtoall.”

CarmakerslikeTesla,HuaweiecosystemplayersandLiAutohavemethodicallypushedforwardtheir

smartdrivingstrategiesinthehopesofupendingthehigh-endcarmarketandacceleratetheircarveoutoftraditionalhigh-endbrandssuchasAudi,MercedesandBMW,whileChinesecarmakerslikeGreat

WallMotor,GeelyandChang’anhavealsotriedtodothesamewithsmartdriving.Thesudden“smartdrivingforalloffensive”launchedbyBYDinearly2025inaninstantelevatedsmartdrivingcompetitionfromonecenteredonthehigh-endcarmarkettoonethatcoversallmarketsegments.Thehumanandmaterialresourcesreserveatmanycarmakersisfarbehindwhatisrequiredofanentirelynewbattle.

EvenGeelyAuto,whichlauncheditsownsmartificationoffensiveinearlyMarchinresponsetoBYD,won’thaveallofitsrelevantsmartdrivingmodelsavailableuntilthesecondhalfofthisyear;

BYD’ssurpriseattackislikeanelephantsuddenlymutatingintoamonstercatchingcompetitorsoff-guard.In2025,“examiningBYD’ssmartdrivingforalloffensive”hasbecomeanewchallengeforcompetitorsto

respondto,especiallyformainstreamcorecompetitorswithweaksmartdrivingcapabilitiessuchasVW,Toyota,NissanandHonda.BYDhasalsogivenitselfanewchallenge:optimizing“smartdrivingforalloffensive”initsnextgrowthphase.

Pre-PurchaseDesireforSmart

DrivinginChina’sPVMarket2024

Safety

Quality

A7

SmartDriving38.83%

StylingBrand

/7

Others

Price

DesireforSmartDrivinginChina’sPVMarket2020-2024

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

20202021202220232024

February10,2025:BYDintroduces“smartdrivingforall”strategy,establishinga

God’sEyetechnologymatrixofferinghighlevelsofsmartdrivingtechnologyonallofthenamesakebrand’smodellineup

includingthelowest-pricedSeagull,makinghighlevelsofsmartdrivingavailabletoall.

Source:TYRI

In2024,Xiaomiledthewayandsmartdriving-focusedcarmakersdominatedthetop20mainstreambrandsindesireforsmart

driving,whileBYDbrandswerealloutsidethelist,ithadtomakeaproactivemoveinearly2025orrisklosingmomentum

BYD’s“smartdrivingforalloffensive”launchedinearly2025ismoreofaforceddefensiveplayratherthananoffensiveone.In2024,theoveralldesireforsmartdrivinginChina’scarmarket

reachednearly40%,meaningthatnearly40outofevery100carbuyerscaredverymuchabout

smartdriving.Asthe“smartdrivingconsumptionboom”comesintoform,carmakersthatproperlycapturesmartdrivingconsumptionpsychenaturallywillperformbetter.BYD,FangChengBaoandDenzabrandswerealloutsideofthetop20rankingsindesireforsmartdriving,whichmeansBYDhadnotyetcapturedthatconsumerpsyche.IfdesireforsmartdrivingfromChineseconsumers

furtherelevatesfrom2025to2027andBYDdoesnotofferclearsmartdrivingsellingpoints,salesmightfluctuatesignificantlyorevencrater.The“smartdrivingforalloffensive”cameattheperfecttimingforBYDassmartdrivingconsumptionreachesakeytippingpoint;

Xiaomi,whichstillhaslotsofpotentialtobeextractedintermsofsmartdriving,ledallmainstream

brandsindesireforsmartdrivingin2024at57.35%.AsallnewproductsincludingtheYU7andYU9(tobeconfirmed)launchin2025-2026,enrichingXiaomi’sproductportfolio,itscompetitionwith

Huaweiecosystemplayerscenteredonsmartdrivingwillintensify,andsub-RMB200,000smart

driving-focusedmodelsliketheSU5andSU3thatcouldbecomingwillposesignificantthreattoBYD;

ThedesiresforsmartdrivingatNIO,TeslaandXpengwerealsoverystrongin2024astheyround

outthetop4alongwithXiaomi.TheXpengMONAM03inparticularwasamajorfactorbehind

BYD’sacceleratedlaunchofits“smartdrivingforalloffensive.”O(jiān)nAugust27,2024,theMONA

M03officiallyhitthemarketatRMB119,800-155,800primarilytargetingyoungbuyersandbilledastheonlyproductofferinghighlevelsofsmartdrivingunderRMB200,000.Itbecameanovernightsuccessasend-usersalestopped10,000unitsinSeptemberand16,000unitsinDecember,hittingBYD

squarelyinthefaceandchallengingitsmodelsliketheQinLandSeal06.ThedemocratizationofsmartdrivingviatheMONAM03notonlyposeschallengesforBYDbutalsoothermainstream

carmakerslikeGeely,Chang’an,VWandToyota,butBYDwastheonlyonethatquicklymade

adjustmentsandrespondedaccordingly.Thisshouldforcecarmakerstorethinkandoptimizetheircrisisanticipationandresponsemechanism;

CorebrandsthatbelongtotheHuaweiecosystemsuchasAITO,LUXEED,AVATR,VOYAHand

Deepalallappearedonthetop20rankingsofbrandswithdesireforsmartdriving.From2025to2026,oncethesmartdrivingbattlebecomesfiercer,especiallyifthepricerangeofproductsinvolvedfall

fromRMB200,000andabovetosub-RMB200,000,competitionwillshiftfromvaluetocost,and

Huaweiwillconfrontseriousdemandfromitsecosystempartnerstolowersmartdrivingcost,anditscarmakingbusinessmodelwillalsofacechallenges;

Smart-drivingfocusedcarmakersdominatedbyChinesebrandsdominatedthetop20rankingsof

brandswithdesireforsmartdrivingin2024.Thiscanbeunderstoodaseithertheseemerging

carmakersignitedsmartdrivingconsumptioninChina’scarmarketorthesmartdrivingconsumptionboomisconducivetothesecarmakersfurthertappinggrowthpotential;

Thedesireforsmartdrivingfrombuyersofforeignhigh-endbrandslikeMercedes,Porsche,Land

Rover,BMW,AudiandVolvowasalsoverystrongandthesebrandsallmadeitintothetop20

rankings.However,thepaceandintensityatwhichtheseforeigncarmakersareintroducingsmart

drivingfeaturesisfarbehindexpectationsofChinesebuyers.BeittheABS50yearsagoorESP30yearsago,foreignhigh-endbrandshavealwaysbeensynonymouswithbeingpioneersinintroducingandpopularizingadvancedtechnologies,andusethattosolidifyandsharpentheirhigh-endlabel.

BrandslikeBBAmustdothesamewithsmartdriving;

InadditiontoBYD,itscorecompetitorssuchasVW,Toyota,Honda,Nissan,Geely,Chang’an,HavalandCherywerealsomissinginthetop20rankingsofbrandswithdesireforsmartdrivingin

2024.Asthe“smartdrivingconsumptionboom”comesintofullswing,thesecarmakerseitherneedtoproactivelylaunchtheirown“smartdrivingforalloffensive”likeBYDorquicklycomeupwithnewsellingpointsevenmoreattractivethansmartdriving;

High-endbrandsstilldominatedthetop20rankingsofbrandswithdesireforsmartdrivingin2024,butfollowingthemovesmadebyXpengwiththeMONAM03inthesecondhalfof2024,BYDwithits “smartdrivingforalloffensive”inearly2025andGeely’sresponsewithitsowninitiativesoon

after,weexpectmoremainstreambrandstoappearinthetop20rankingsandhelpexpandsmartdrivinganditspopularity.

Top20MainstreamBrandsinPre-PurchaseDesireforSmartDriving2024

Xiaomi

NIO Tesla Xpeng AITO ZEEKRMercedes AVATRLUXEEDPorsche

IMLYNK&CO LiAutoLandRoverBMW

Audi smart VolvoVOYAH

Deepal

Denza

FangChengBaoBYD

57.35%

56.89%

56.14%

55.17%

54.94%

53.88%

53.70%

53.13%

52.76%

52.29%

51.50%

51.38%

50.66%

50.63%

50.20%

50.01%

49.26%

49.17%

48.65%

48.64%

47.41%44.29%

43.92%

Source:TYRI

Mainstreambranddenotesbrandswithsalesofmorethan30,000unitsinChinaintheyearspecified;thedenominatorofthepenetrationrateisthebrand/modelitself,whilethenumeratoristheactual

valueofvariable,thisbetterreflectstheconditionsofthesaidbrand/model,sowearenotgoingtodohorizontalcomparison

BYD’s“smartdrivingforalloffensive”basedonitshigh

marketshareof15%andcomplimentaryaddedfeaturesis

expectedtosetoffanewmarketrhythm,competitorsneedtoeitherfollowsuitorcutprices

BYD’s“smartdrivingforalloffensive”inearly2025mayverywellsetoffanewrhythminChina’s

smartdrivingcompetitivelandscape:in2024BYDGroup’smarketshareinChinaroseto15.1%,

surpassinglong-timeleaderVolkswagenGroupandfaraheadofnemesislikeGeelyGroupandToyotaGroup.Withsuchahighmarketshare,mostofwhatitdoeswillsetoffarippleeffectintheindustry,

especiallywhenitcomestotheall-importantandsensitivesmartdrivingtactics;from2021to2024,the

threeroundsofmassivepricecutslaunchedbyBYDnotonlysignificantlyincreaseditssales,butalso

madecompetitorstremblewithfear.ThecoresellingpointofBYD’ssmartdrivingoffensiveinearly

2025isenrichingfeatureswithoutincreasingprices,anindirectpricecutthataddsmorefearforcompeti-tors;thecoremeasureofBYD’ssmartdrivingoffensiveisstandardizationandpopularization,draggingdownthemainbattlefieldofsmartdrivingfromtheRMB200,000andabovepricerangetothe

sub-RMB200,000pricerangeorlower,makingitabattleofmanyinsteadofoneofafew;smartdrivinghasbecomethehottestcatchphraseofChina’scarmarketinrecentyears,whethertheyparticipateinthatbattleornot,everysinglecarmakermustkeepacloseeyeonit.NowthatBYDhastakenactiononthehottesttopicintheindustry,othershavenochoicebuttoparticipateinthebattle…

CompetitorsneedtoproactivelyrespondtoBYD’s“smartdrivingforalloffensive”eventhoughtheyknow

itisanattempttoswaythemarketinanewdirection.Theycaneitherfollowsuitorcontinuetocutprices;

Carmakersthatareprofitablewitheconomiesofscaleandstrongpartsintegrationcapabilitieswilllikelyfollowsuitandlaunchtheirownsmartdrivingoffensive.FromFebruarytoearlyMarch2025,mainstreamChinesebrandslikeGeely,Chang’anandGreatWallMotorleanedtowardsdoingso:Geelyfor

examplelauncheditsownsmartdrivinginitiativeonMarch3,the“vastexpanseofthousandmiles”

coveringfivedifferenttiersofsmartdrivingcapabilitiesincludingH1,H3,H5,H7andH9,butthesewon’tmaterializeuntilthesecondhalfof2025.Ifthat’sonlywhatGeelycouldmusterdespiteitsswiftactions,imaginehowslowitwouldbeatothercarmakers.ForeigncarmakerslikeVW,BuickandHondathat

haveredtapeindecisionmaking,weaklocalR&Dandunshakablesupplierinterestslargelycanonly

respondbytakingthelastresort:cutprices.OnMarch28,2025,SAICGMannouncedanother“no

bargain”pricingfortheBuickRegal:the25TChaoxiangeditionatRMB106,900andthe28TZongxiangeditionatRMB123,900,morethan30%offfromoriginalMSRP.

BYDBrand’sFirstBatchofSmartDrivingModels

OceanNetwork

DynastyNetwork

SDEdition

MSRP(RMB10K)

SDEdition

MSRP(RMB10K)

Seagull

6.98-8.58

QinPLUSDM-i

7.98-10.38

Dolphin

9.98-12.58

QinPLUSEV

10.98-12.98

Seal05DM-i

7.98-10.38

QinLDM-i

9.98-13.98

Seal06DM-i

9.98-13.98

SongLDM-i

13.58-17.58

Seal06GT

13.68-18.68

SongLEV

18.98-24.98

Seal07DM-i

13.98-19.58

SongProDM-i

10.28-13.28

SealEV

17.58-23.98

YuanUP

9.98-11.98

Sealion05DM-i

10.28-13.28

HanDM-i

16.88-22.58

Sealion07EV

18.98-23.98

HanEV

17.98-23.58

SongPLUSDM-i

13.58-17.58

TangDM-i

17.98-21.98

SongPLUSEV

14.98-17.58

CoreFactorsBehindBYD’sNewPushforSmartDriving

NewFeatures

atNoCostHighMarketShare

BYD’sPush

for

FeatureSmartDriving

Popularization/<RMB200K

FollowNewTrends

Standardization

Source:officialcorporatemarketingmaterial

BYD,VW,ToyotaandGeelyEnd-UserSalesMarket

ShareinChina2017-2024

OthersGeely

ToyotaBYD

VWGroup

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2017

2018

2019

2020

2021

2022

2023

2024

ToavoidblindlyfollowingsuitandbetterunderstandBYD’ssmartdrivingoffensive,TYRItriestounderstandusersbehinddesireforsmartdrivingfirstbeforeextractingpertinentoptimizationandresponsetactics

Short-term,therelativelymorecapablecarmakerscouldrespondtoBYD’ssmartdrivingoffensivewiththeirown,theaverageoneswilllikelyannouncepricecuts,andtheweakonesmightjustsititout.ButitwouldbenavetothinkBYD’ssmartdrivingoffensiveisashort-termtactic.Theoffensivein

early2025isrelativelycoarseandmayonlyrepresentabeginning,likeversion1.0.Oncethescale

effectforms,BYDmayverywelllaunchupgradedversions2.0and3.0.InordertoeffectivelycounterBYD’ssmartdrivingoffensive,competitorsmustthinklong-termratherthanreactingshort-term;

Longterm,basedonpriorexperiencesinChina’scarmarket,manycarmakerswilltrytofully

benchmarkBYDandlaunchcomparablesmartdrivingfeatures.Thistacticisrelativelyefficientandhighlytargetedandseniorexecsdon’thavetothinkashard.ButBYD’skeycompetitiveedge

suchasitsverticalintegrationandbatteryprowessandChairmanWangChuanfu’sleadershipis

somethingthatmostcompetitorsdon’thave.Xpeng’slaunchofthecheaperMONAM03with

smartdrivinginthesecondhalfof2024wassomethingthatonlyafewseniorexecsatcarmakers

includingWangChuanfureactedtoproactively,mostotherswerenonchalant.Furthermore,BYD’s“smartdrivingforalloffensive”anditsmassiveadvantageineconomiesofscaleareclosely

correlatedandcomplementeachother.Withoutsimilareconomiesofscale,competitorsmaynotbeabletooffercompetitivepricingeveniftheylaunchtheirownoffensive.AnotherkeypointisthatthefuryofBYD’s“smartdrivingforalloffensive”notonlyhidesitsownweaknessinsmartdrivingbutalsoforcescompetitorsintoascenariowheretheywillbestrugglingtocopeandmissgolden

opportunitytocountereffectively;

TYRIprimarilyconductsuserresearch,andweassumetherehastobedifferencesinuserprefer-

enceswhenitcomestosmartdriving.Ifcarmakerslaunchsmartdrivingoffensivesprematurely,it

maynotmaximizeresourceutilizationvalue.BasedonthecurrenttacticsofBYD’ssmartdriving

offensive,thelowerthevehiclesarepricedat,thelesscapableoftheirsmartdrivingsystems.But

doesthephenomenonthat“peoplebuycheaperDolphinsandSeagullsnotbecausetheyearnlessbutbecausethesemodelssatisfytheirmobilityenablingneeds”reallyexist?Ifso,dothesebuyers

havethespendingpowertopurchasemoreadvancedlevelsofsmartdrivingsystems?Ifso,thenhasBYD’scurrentsmartdrivingoffensivetotallymissedthenewopportunityofmobilityenabling

vehicleselevatingvalueadd?AndarecompetingmobilityenablingmodelssuchastheGeely

XingyuanandAIONUTawareofthisissueandcantheyseizethisnewopportunity?

BasedonTYRI’scomparativeadvantage,wetrytofirstunderstandusersbehindthedesireforsmartdrivingbeforeextractingpertinentsuggestionsforBYDtooptimizeitssmartdrivingoffensiveandcompetitorstobetterrespondtoBYD’ssmartdrivingoffensive.

BYD’sCoreSellingPoints

TeamLeadership

God’sEyeSmartDrivingSystem

TeamLeadershipNEVBrandStrengthScaleAdvantageIGBT4.0ChipYunnianBodyControlXuanjiAIArchitecture

ChannelAdvantageBladeBattery

VerticalIntegrationLingyuanSystem

DMHybrid/ePlatformYitothe4th

Yunnian

Body

Control

Others

PossibleCompetitiveResponse

Fully

Benchmark

Returnto

UserFocus

NewTech

NewProducts

CompetitiveTactics

PriceCutDoNothing

BringItOn

Fromanincomeperspective,usersthatearnmorehavestrongerdesireforsmartdriving,butBYDstillprimarilycaterstobluecollarbuyers,high-endbrandslike

Huawei-backedbrands,LiAutoandBBAmustremainedlaserfocused

AfterBYD’slaunchofits“smartdrivingforalloffensive”onFebruary10,RichardYu,theoutspokenchairmanof

Huawei’sIntelligentAutomotiveSolutionsBUwasthefirsttocommentonsocialmedia,postingonWeibothat“makingsmartdrivingworkvs.makingitworkwellarecompletelytwodifferentthings,”anindirectswipeatBYDanditssmart

drivingtechcapabilitiescomparedtoHuawei’s.Hemightnotbewrong:BYD’spriorityinthisroundofthesmartdrivingoffensiveistorapidlypopularizeitthroughtheGod’sEyeCsolutionprimarilyservingasanentry-levelsolution;

Asofearly2025,Huawei,whichprimarilytargetsthehigh-endcarmarketandhigh-incomeearnersstillhadanedgeinsmartdrivingoverothers.In2024,wealthybuyershadthehighestdesireforsmartdrivinginChina’scarmarketat52.83%.Smartdrivingisessentiallyastandardfeatureinthewealthycarmarket.Duringtheyear,theAITOM9

poweredbyHuawei’ssmartdrivingsystembecameatopsellerinChina’swealthycarmarket.Thedesireforsmartdrivingfrommiddleclassbuyerswasalsorelativelyhighat42.89%,assmartdrivingisessentiallyakeyfeatureinthe

middleclasscarmarket.StartingfromQ42024,salesoftheLUXEEDR7poweredbyHuawei’ssmartdrivingsystemandprimarilytargetedatmiddleclassbuyerssteadilyrose.Thedesireforsmartdrivingfrombluecollarbuyerswas

relativelylowatjust34.74%.Carmakerscanprovidesmartdrivingasoptionalpackages.Lackingcostcompetitive-ness,Huaweishouldthinktwiceaboutofferingsmartdrivingatlowerpricesandforlowervehiclesegments;

CurrentlybuyersofthenamesakeBYDbrandarestillprimarilybluecollarfamilybuyers,whichaccountedforover60%ofthebrand’ssalesin2023.Forthesetypeofcustomers,ifsmartdrivingfeaturesareaddedatnocost,thenthey’llbemorethanhappytohavethesefeaturesontheircars.Manyofthemwouldjustasbehappyifthecarsbecame

RMB5,000orRMB10,000cheaperwithoutthesmartdrivingfeatures.IfBYDdoesnotofferthistypeofdiscount,thenpotentialcustomersmightturntocompetingmodelsthatoffermorevalueformoney.Ifthe“smartdrivingforall

offensive”isineffectiveandcorecompetitorsannouncepricecuts,BYDmighthavetocutpricesonitssmartdrivingeditions,whichwillresultinaddingmorecontentatevenlowerpricesinsteadofaddingcontentatnocost;

Theoretically,high-endbrandsprimarilypricedaboveRMB200,000likeDenza,FangChengBaoandYangWangshouldshouldertheweightofBYD’ssmartdrivingoffensive.Butinthehigh-endcarmarket,canBYD’ssmartdrivingsolutionsstackupagainstHuawei?Towardtheendof2024,theDenzaD9wassignificantlyimpactedbytheVOYAHDreamerwhichwaspoweredbyHuawei’ssmartdrivingsystem,andinearly2025,BYD’sall-newFangChengBao8waslaunched

withHuawei’ssmartdrivingsystem.TheYangWangU8whichispoweredbyBYD’shighestlevelsmartdrivingsystem,wasaroundingerrorintermsofsalescomparedtotheAITOM9poweredbyHuawei’ssmartdrivingsystem;

The“smartdrivingforalloffensive”launchedinearly2025aimedatpopularizingsmartdrivinginthesub-RMB200,000pricerangewasasmartmoveonBYD’spartplayinguptoitsstrengths.RichardYuwasabitmischievoussayingwhathesaidwhichbasicallyspokeWangChuanfu’smindandwasthetruth.High-endbrandslikeHuawei-supported

brands,LiAutoandBBAshouldworkdiligentlyontheirownsmartdrivingcapabilitiesandeitherpopularizethosefeaturesoroptimizepricing.OnceBYDpopularizesitsGod’sEyeCsolutionandestablishesaneconomiesofscaleadvantage,it’sgoingtousethatadvantagetoempowertheBandAsolutionsandoptimizepricingmechanismofhigh-endmodelspoweredbythesemoreadvancedsolutions.Ifcompetinghigh-endbrandstrytomendthefencethen,itcouldbetoolate;

BYDcurrentlydoesnothaveanabsoluteadvantagetotapintothemiddleclassandwealthycarmarketsthroughsmartdriving.CompetitorslikeHuawei-backedbrands,LiAutoandXiaomiallhaveearlymoveradvantage,

howeverBBAhavethebiggesttheoreticaladvantage.

DesireforSmartDrivingbyUserSocialStatus2024

BYD,Denza,LiAutoandBBA

SalesbyUserSocialStatus2023

Wealthy

MiddleClassBlueCollar

60%

50%

40%

30%

20%

10%

0%

BlueCollar

MiddleClass

Wealthy

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

BYD

Denza

LiAuto

Mercedes

BMW

Audi

VariationsofBYD’sGod’sEyeSolution

Solution

God’sEyeA

God’sEyeB

God’sEyeC

Core

Feature

Tri-LiDAR

LiDAR

Tri-Cam

Brands

YangWang

Denza/BYD

BYD

Function

CityNOA

CityNOA

CityNOA

HighwayNOA

HighwayNOA

HighwayNOA

LaneNOA

LaneNOA

LaneNOA

Yitothe4th

Yitothe3rd

AVP

AVP

AVP

RPA

RPA

RPA

APA

APA

APA

AEB

AEB

AEB

LowSpeedAEB

LowSpeedAEB

LowSpeedAEB

360Vehicle

View

360Vehicle

View

360Vehicle

View

……

……

……

Source:TYRI

Bluecollar:annualhouseholdincome<RMB150K,middle-class:RMB150K-RMB500K,wealthy:>RMB500K

Fromanageperspective,youngerbuyershavestrongerdesireforsmartdriving,butBYDdoesnotprimarilycatertoyoungbuyers,

brandsprimarilycateringtoyoungbuyerslikeLYNK&CO,DeepalandMGshouldtapmoreintothesmartdrivingpotential

Fromanageperspective,thegroundisnotthatfertileforBYD’s“smartdrivingforalloffensive.”

YoungbuyershavethestrongestdesireforsmartdrivinginChina’scarmarketatnearly42%in2024,butthesebuyersonlycontributedto40%ofBYD’ssalesin2023.Excludingyoungfemalebuyers,thatproportionisevenlower.Asofearly2025,theSealEVandSeal06GTtailor-madeforyoungmale

buyershadlu