Broker: OCBC Investment Research
Date: 24 September 2024

BYD’s Role in Autonomous Driving Development

BYD is actively engaged in the race to develop and commercialize autonomous driving (AD) technologies within the electric vehicle (EV) market. The company, alongside other Chinese EV brands such as XPeng, Li Auto, Geely, and NIO, is focused on advancing its self-driving capabilities to enhance safety, improve the driving experience, and offer more convenience to users.

Government Approval for Autonomous Vehicle Testing

BYD has been selected by the Chinese government as one of the first domestic automakers authorized to test Level 3 and Level 4 autonomous vehicles on public roads. This approval gives BYD a competitive edge, enabling the company to accelerate the development and mass production of self-driving vehicles. Building on its extensive road-testing experience, BYD is well-positioned to lead the commercialization of higher-level autonomous driving systems.

Strategic Focus on Intelligent and Connected Vehicles

BYD views autonomous driving as a key differentiator in the increasingly competitive EV market. Consumers are showing a growing preference for intelligent and connected features in their vehicles, and BYD is working to integrate these advanced technologies into its lineup. The company’s focus on AD systems aligns with its broader strategy of offering innovative mobility solutions.

Capitalizing on China’s Infrastructure and Policy Support

BYD benefits from China’s advanced infrastructure, which includes widespread 5G networks, data centers, and connected highways. These elements are crucial for supporting the development and commercialization of autonomous driving technologies. Additionally, government policies aimed at promoting the adoption of Intelligent and Connected Vehicles (ICVs) provide further support for BYD’s efforts in this space.

Conclusion

BYD’s progress in autonomous driving development positions the company as a key player in China’s electric vehicle industry. With government approval for testing, a focus on intelligent driving systems, and strong infrastructure support, BYD is well-equipped to lead the future of autonomous driving and smart mobility in China’s dynamic EV market.