L3 autonomous driving admission launched, Sagiteng Juchuang (02498) ushered in a definitive increase

The Zhitong Finance App learned that on December 15, China officially approved the launch of the first batch of L3 class conditional autonomous vehicles, marking that China's autonomous driving industry has officially entered a new stage of commercialization of “human-vehicle co-driving” under the guidance of top-level design and admission permits. The implementation of this key policy, like overthrowing the first domino, will quickly activate the entire smart driving industry chain, from lidars and chips to algorithms.

The core of this approval is the establishment of an officially approved L3 technology path for multi-sensor fusion solutions with lidar as the core. This is not only an increase in the “quantity” of the industry, but also a shift in “quality.” The stringent requirements for reliability, safety and redundancy of sensing systems for L3 autonomous driving are pushing lidar from a “high-end option” to the status of a “core safety component”, and its market demand and technical specifications will rise definitively.

Under this trend, leading companies with leading technology will directly benefit. Taking Suteng Juchuang (02498) as an example, its forward-looking digital lidar has achieved through a full-stack self-developed chip path, the industry's only automotive-grade long-range digital radar with 500 lines or above, and combined with the industry's only pure solid state blind-repair radar that can be mass-produced to build a dual sensing guarantee of “remote accurate recognition+close range blind spot elimination”, which can meet the strict requirements of advanced autonomous driving for 360-degree blind spot detection. Up to now, Suteng Juchuang has been designated by 32 car companies around the world for a total of 144 models.

With the commercialization of L3, the integration of chips and optical components upstream of the industrial chain to midstream systems will all usher in an explosion of demand. Due to its technical differences, digital radar solutions are expected to take the lead in market expansion and further consolidate their leading position. This entry permit is not only a technological milestone, but also a clear signal of the revaluation of the industrial chain.