The aftermath of the Lunar New Year has triggered a fierce price war in the automotive industry, with rivalry intensifying among major brandsA new battlefront has emerged, where companies like Tesla and Xpeng are using enticing offers such as "zero-interest financing for X years" to indirectly engage in this conflictMeanwhile, competitors like BYD, Changan, and Geely are leveraging advancements in smart driving technology to stake their claim in this ongoing competition.

On February 9th and 10th, shortly after the holiday season concluded, Changan and BYD unveiled groundbreaking developments in smart driving, sending shockwaves through the automotive marketBYD's "Universal Smart Driving" strategy was particularly noteworthy; it introduced an impressive 21 new models aimed at a range of consumers, priced between 70,000 to 200,000 RMB, all equipped with cutting-edge Tian Shen Eye C advanced driving capabilities.

At the press conference, BYD's Chairman Wang Chuanfu boldly predicted that 2025 would mark the "Year of Universal Smart Driving." He forecasted that in the next two to three years, smart driving technology would become as ubiquitous as seatbelts or airbags, serving as a catalyst for the future development of the electric vehicle sector.

This ambitious strategy by BYD resulted in a dramatic surge in their stock pricesOn February 14th, BYD's A-shares saw a significant spike, hitting an all-time high and pushing their market capitalization back above the one trillion RMB mark.

In the wake of BYD's announcements, Geely was quick to respond, disclosing plans to present its own AI-focused strategic initiatives in early MarchThe stakes for smart driving have escalated, causing industry leaders from various brands to respond with increasing urgency, igniting a robust discourse around the merits and challenges of this technology.

Key figures such as Yu Chengdong, Chairman of Huawei's Automotive Business Unit, and Wei Jianjun, the Chairman of Great Wall Motors, voiced their critiques regarding the concept of universal smart driving

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Yu emphasized the distinction between merely functional systems versus those that are both user-friendly and safe, remarking, "being usable and being good while ensuring safety are fundamentally different realms." Wei added that "smart driving is not a show; the truth comes from real-world practice."

As the development of smart driving technology marches on, the pathway appears to necessitate an initial phase of widespread adoption, followed by advancements in the overall quality of such systemsHowever, consumers must also enhance their understanding of smart driving through hands-on experiences to evaluate the varying levels of technology available in the marketThe ongoing debate among industry leaders serves to bolster consumer awareness and comprehension of these advancements.

The push towards universal smart driving has become an incontrovertible trend, with BYD acting as the catalyst for this transformational shift in the market.

In recent years, brands like Xpeng and other newcomers have predominantly led the charge for smart driving technologyA stark contrast is apparent when comparing the market landscape prior to 2023, where advanced driving features were mainly reserved for vehicles priced above 300,000 RMBYu Chengdong has articulated that models priced below 300,000 RMB are often unprofitable for manufacturers, thus discouraging Huawei from venturing into lower-priced segments.

Yet change is underway; Xpeng's introduction of the MONA M03 MAX edition at a price point of 150,000 RMB incorporates advanced driving systems, facilitating a further descent of smart driving technology into more accessible price ranges.

The maturation of smart driving technologies alongside decreasing hardware costs has provided the necessary conditions for this shiftComponents such as lidar and high-performance chips have seen substantial price reductions—in fact, DJI’s advanced driving solutions have diminished to the level of around 7,000 RMB

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Moreover, BYD has made strides in cost reduction through proprietary vision-based systems (DiPilot 100), making smart driving features viable even for vehicles costing below 100,000 RMB.

The advent of the era of universal smart driving invites consumers to shift their focus from the mere presence or absence of smart features to the quality of user experiencesInitially, buyers may have opted for smart driving vehicles out of a desire to keep pace with peers, but long-term assessments will rely on tangible performance metrics, such as the frequency of system intervention and the variety of operational scenariosAfter all, consumers are inherently rational; previously, the most notable usage of smart driving systems primarily revolved around parking functionalities.

As industry leaders have rightly pointed out, safety remains the foremost priority for any mode of transportation—especially when driving on public roadsIn the past year, various brands faced incidents where vehicles collided while in auto-parking mode, although these events occurred at lower speeds and did not result in severe consequencesConversely, the stakes are far higher when considering vehicles navigating at high speeds on major thoroughfares.

The downward shift in advanced driving technology reflects an inevitable convergence propelled by advancements in technology, reduction in costs, and shifting market dynamics—impacting the competitive landscape well beyond mere pricing strategies.

However, mere accessibility is but the first phase; the ultimate goal for automotive manufacturers should be to develop systems that users find not only reliable but also enjoyable to useThe future of the industry hinges on finding a balance between cost reductions achieved through economies of scale and enriching user experiencesConsumer attitudes toward smart driving are likely to evolve from passive acceptance to active preference, with safety, practicality, and cost-effectiveness emerging as critical metrics in determining success.

The very concept of whether a vehicle offers smart driving capabilities is becoming less of a differentiator for price premiums

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