CITIC Securities: AEB strong standard regulations issued, line control braking penetration accelerated

According to the Zhitong Finance APP, Guotai Junan has released a research report stating that, based on the National Standard Information Public Service Platform, the Ministry of Industry and Information Technology has organized the solicitation of opinions on the national standard draft for "Technical Requirements and Testing Methods for Automatic Emergency Braking Systems for Light Vehicles." The public consultation is now open, with a deadline of June 30, 2025, and the proposed implementation date is January 1, 2028. The bank predicts that automatic emergency braking systems are expected to become standard equipment. Recommended stocks: APG. Beneficiary stocks: WXQC, Vie Science & Technology. Guotai Junan's main viewpoints are as follows: The bank believes that this strong regulatory standard will drive the penetration rate of various electronic control devices in braking systems. Specifically: According to the Gaogong Automobile WeChat public account, the installation rate of AEB as standard equipment in passenger cars sold in the domestic market continues to rise year by year. Monitoring data from the Gaogong Intelligent Automobile Research Institute shows that in 2024, the installation rate of AEB as standard equipment in passenger cars in the Chinese market (excluding imports and exports) is expected to be 63%, an increase of approximately 5.6 percentage points compared to the previous year. Among them, the installation rate of AEB as standard equipment for models priced at 200,000 yuan and above has exceeded or is close to 90%, while for models priced between 150,000 and 200,000 yuan, it is close to 80%. In contrast, the installation rates for models priced below 100,000 yuan and between 100,000 and 150,000 yuan are only 3% and 48%, respectively. The hardware required for AEB is divided into two parts: intelligent driving and chassis execution. Intelligent driving includes cameras, millimeter-wave radar, and controllers. Chassis execution can use ESC functions or electronic control braking functions. Currently, ESC is mainly dominated by foreign companies, presenting significant opportunities for domestic substitution. Additionally, considering that electronic control braking has higher braking efficiency than ESC, the bank believes that the new regulations are expected to drive the penetration of electronic control braking. The bank believes that companies such as APG, WXQC, and Vie Science & Technology are likely to benefit from the accelerated penetration of electronic control braking and the domestic substitution opportunities for ESC brought about by the implementation of the AEB strong regulatory standard