According to Zhitong Finance APP, the Huang Xili team from Soochow Securities published a research report stating that the penetration rate of urban NOA intelligent driving reached 22.0% in June, breaking the 20% mark for the first time. The Aito M8 is equipped with urban NCA as standard across the entire range, and deliveries continue to increase; the 2025 model of Li Auto still adopts a high-low configuration strategy, which can basically reflect changes in the demand side for intelligence, with an overall urban NOA intelligent driving penetration rate of 54.9%, a month-on-month increase of 10.6 percentage points, and the penetration rate has broken 50% for the first time. In the future, complete vehicles may be divided into three types of companies: B-end Robotaxi operations + C-end personalized brands + high-end manufacturing of complete vehicles. Components may be divided into two types of companies: modular suppliers + single-category suppliers. The team remains optimistic about intelligent complete vehicles.
<h2>The views of Soochow Securities are as follows:</h2>
Why do we recommend going all in on automotive intelligence?
1) Automotive intelligence is essentially a revolution in mobility. [L3 intelligence helps car companies sell cars] - [L4 Robotaxi realizes software charging for car companies] - [Independent brands achieve global rise] is the three-part series of automotive intelligence. 2) 2025 may be a turning point for automotive intelligence! The popularization of urban NOA (the core experience of L3 intelligence) is the driving force for intelligence to become one of the top three considerations for consumers when purchasing cars. Currently, we will closely track the changes in [L3 intelligence penetration rate] from 10%-50%-80%+ during 2025-2027 based on the [leading car companies' new car cycle - grassroots terminal research - verification of popular models] system. 3) Automotive intelligence is an elimination competition model, where the strong become stronger. In the future, complete vehicles may be divided into three types of companies: B-end Robotaxi operations + C-end personalized brands + high-end manufacturing of complete vehicles. Components may be divided into two types of companies: modular suppliers + single-category suppliers.
June intelligence summary: The key word is that the switch between hardware and software brings an upward trend in intelligence penetration rate.
1) Regarding penetration rate and willingness to pay: The penetration rate of urban NOA intelligent driving reached 22.0% in June, breaking the 20% mark for the first time. The Aito M8 is equipped with urban NCA as standard across the entire range, and deliveries continue to increase; the 2025 model of Li Auto still adopts a high-low configuration strategy, which can basically reflect changes in the demand side for intelligence, with an overall urban NOA intelligent driving penetration rate of 54.9%, a month-on-month increase of 10.6 percentage points, and the penetration rate has broken 50% for the first time. 2) Important new cars: XPeng G7 Ultra globally debuted the Turing AI chip, with three Turing AI chips bringing the industry's first L3-level computing power platform, effective computing power of 2200 TOPS+, and the industry's first local VLA+VLM large model. Xiaomi YU7 is equipped with 700 TOPS NVIDIA AGX Thor chips as standard across the entire range, with the number of Clips increased to 10 million, three times that of the previous version (pushed with YU7 deliveries), acceleration and deceleration control is more linear, obstacle recognition and detour are more precise, and intersection understanding capability has improved. The Xiaomi XLA large model is expected to be pushed in H2.
Stock selection for automotive intelligence in 2025:
Continue to be optimistic about intelligent complete vehicles! Intelligence is the core, the new car cycle/monthly sales are the landing tracking, and the robot layout is the icing on the cake! Hong Kong stocks &gt; A-shares. Hong Kong stocks ( XPeng-W + Li Auto-W + Xiaomi Group-W, etc.) / A-shares (BYD + SAIC Group + SERES, etc.)
Optimistic about intelligent incremental components: AI chips (Horizon Robotics-W + Hezhizhi Intelligent), domain controllers (Desay SV + Huayang Group + Joyson Electronics + Zhixing Technology, etc.). Drive-by-wire chassis (Bertel + Nexteer), automotive electronics (Baolong Technology + Jingwei Hirain, etc.).
Risk Warning: The price war for passenger cars exceeds expectations; terminal demand recovery is lower than expected; the pace of L3-level autonomous driving policy rollout is slower than expected

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Soochow Securities report shows that in June, the penetration rate of city NOA-level intelligence has surpassed 20% for the first time, reaching 22.0%. The team is optimistic about the intelligence mainline, believing that automotive intelligence is the core of the mobility revolution, and expects 2025 to be a turning point for intelligence. In the future, complete vehicles will be divided into B-end Robotaxi operations, C-end personalized brands, and high-end manufacturing, while components will be divided into modular and single-category suppliers

- The report from Dongwu Securities highlights that the urban NOA level of intelligent vehicles reached 22.0% in June, marking a significant milestone.  
- The report predicts a shift in the automotive industry towards three types of companies: B-end Robotaxi operations, C-end personalized brands, and high-end manufacturing, while parts suppliers will be categorized into modular and single-category suppliers.  
- The team remains optimistic about the future of intelligent vehicles, emphasizing that 2025 may be a pivotal year for automotive intelligence, driven by increasing consumer demand and technological advancements.

Zhitong

SERES

BYD Company

BYD Company Limited

BYD COMPANY

XPeng

XPENG-W

Jingwei Hirain

XIAOMI-W

SAIC Motor

LI AUTO-W

BLACK SESAME

IMOTIONTECH

Baolong Automotive

Desay SV

NEXTEER

NVIDIA

GraniteShares 2x Long NVDA Daily ETF

FORYOU

YieldMax NVDA Option Income Strategy ETF

NJEC

WBTL

Soochow Securities Co., Ltd.: In June, the city's NOA-level intelligent penetration rate broke through 20% for the first time, continuing to be optimistic about the intelligent main line