The new energy vehicle (NEV) market has become as lively as a “Singles’ Day” shopping spree, with automakers racing to outdo each other in the push toward intelligent technology. As a leading player in electrification, BYD naturally attracts significant attention. Monthly sales of 500.000 units and annual sales of 4 million are impressive figures that could sustain bragging rights for months. However, past glory isn't enough—competition in the electric vehicle sector is shifting from “electrification” to “intelligentization.” Can BYD maintain its dominance in the age of smart cars?
Advanced Intelligent Driving: The “Blank Zone” for 150.000 RMB Models
The core of intelligentization is intelligent driving—an industry consensus. These days, cars without advanced driving assistance systems struggle to sell. Yet, basic Level 2 systems are no longer sufficient, with the main battleground now focused on advanced intelligent driving. Here lies BYD’s challenge: a “blind spot” in the mid-to-low-end market.
Currently, BYD’s advanced intelligent driving systems are mainly featured in models priced above 200.000 RMB, such as the Denza N7 and BYD Han. However, its more affordable models in the 150.000 RMB range are largely left out. Worse, even when equipped with some driver-assist features, consumer reviews are lukewarm. Some users have even criticized these functions as “so useless they might as well not exist,” casting doubt on BYD’s competitiveness in this segment.
In contrast, competitors like XPeng and Aion have introduced advanced intelligent driving capabilities in their models priced around 150.000 RMB, with relatively mature system experiences. For consumers, driving experience outweighs impressive sales figures. Unfortunately, in this regard, BYD is lagging behind.
Self-Developed Driving Chips: BYD’s Strategic Move
To address this shortfall, BYD plans to leverage its core strength—self-developed chips. Reports suggest BYD Semiconductor is developing a chip specifically for intelligent driving, aiming to equip vehicles priced below 150.000 RMB with proprietary intelligent driving assistance systems within the next two to three years. In essence, BYD is aiming to take full control of intelligentization through a combination of self-developed chips and systems.
This strategy makes sense. Externally sourced chips often operate as “black boxes,” limiting automakers' ability to deeply optimize them for specific needs. Self-developed chips, on the other hand, can be tailored to integrate seamlessly with in-house systems while also reducing costs. For mid-to-low-end vehicles, where pricing is extremely sensitive, even small cost increases can significantly impact sales.
More importantly, BYD has already demonstrated its prowess in automotive-grade chips during the global chip shortage. From its proprietary IGBT chips to the recent 4nm BYD 9000 cockpit chip, BYD has accumulated substantial expertise. For BYD, the challenge of developing intelligent driving chips lies not in feasibility but in timing and effectiveness.
The Race for Intelligence: Breaking Through Under Pressure
While BYD dominates the electrification market, the smart vehicle sector is rife with fierce competition. XPeng’s NGP (Navigation Guided Pilot) and Aion’s ADiGO intelligent driving system have already gained a lead, particularly in the mid-to-low-end market, where these brands have established a noticeable first-mover advantage.
That said, BYD is not to be underestimated. Its scale in the electric vehicle market provides significant advantages in R&D funding, technical resources, and market reach. Additionally, the progress in self-developed chips is set to become a pivotal weapon as BYD enters the latter half of the intelligentization race. If BYD can integrate advanced intelligent driving features into models priced below 150.000 RMB, it will significantly boost its market competitiveness.
However, this doesn’t mean BYD can rest easy. Chip development takes time, and system optimization requires extensive testing. With competitors already making strides, BYD must act swiftly to deliver robust products and secure its share of the mid-to-low-end intelligent vehicle market.
Future Battleground: Dominating Both Electrification and Intelligentization?
BYD’s shift from piecing together off-the-shelf technologies to a strategy of “self-development + integration” represents a more efficient and controllable approach. However, in the capital- and time-intensive field of intelligent driving, determination alone won’t suffice. Success hinges on the simultaneous advancement of technical capabilities and market strategies.
From electrification to intelligentization, BYD is undergoing a transformative evolution. Its ability to establish a foothold in the intelligent driving arena will not only shape its standing in the domestic market but also determine its long-term competitiveness on the global stage.
