China AV Newsletter - Aug. 2024

August 2024 was a groundbreaking month for autonomous driving, with major developments that signal a transformative shift in the global mobility landscape. From Uber and BYD joining forces to deliver 100,000 electric vehicles and explore autonomous ride-hailing, to Zeeker and Mercedes as both brands were granted autonomous driving licenses by local municipalities to test their vehicles on public roads. Mercedes target L4 in Beijing, while Zeeker target Hangzhou and Shanghai, backed by Mobileye most advanced tech. LiDAR is back in the news as the 2 top global companies, Hesai and Robosense, release their 2024 interim reports that show not only a growing profit but also a fast production ramp up of almost 70% since last year. Increasing their market share gap from the rest of the market, taking over 80%!

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China AV Newsletter - Aug. 2024

Aug.1st: Uber and BYD partnered to supply 100,000 electric vehicles (EVs) for Uber’s global ride-hailing network, beginning in Europe and Latin America. The two plan to also collaborate on integrating autonomous driving technology, though specific details on the self-driving partnership remain under wraps.

Aug.1st: Zeekr and Mobileye announced that based on the successful foundation of their collaboration over the past several years, the two companies plan to accelerate the process of technology localization in China. The two will integrate Mobileye technology into the next generation of Zeekr’s models, and drive the implementation of autonomous driving technologies in the Chinese and global markets. Since the end of 2021, Zeekr has delivered more than 240,000 Zeekr 001 and Zeekr 009 models equipped with Mobileye's SuperVision? solution to customers worldwide.

Aug.2nd: Guangzhou municipality proposed legislation to support autonomous driving taxis and buses. The local government will steadily promote the large-scale operation of intelligent networked vehicles and open roads for mixed operation of autonomous driving and human driving across the city.

Aug.5th: XPeng Aeroht announced that it has secured US$150 million in Series B1 financing and launching Series B2 financing at the same time. XPeng Aeroht noted that the financing will be used to ensure a smooth realization of XPeng Aeroht's flying car R&D, scale mass production and commercialization process.

Aug.5th: Mercedes-Benz has become the first international automaker to be authorized to conduct both L4-level urban and high speed road autonomous driving tests in Beijing. Mercedes L4 test vehicles are two technologically upgraded S-Class sedans equipped with sensors designed specifically for the project, including LiDAR, millimeter wave radar and cameras.

Aug.8th: Black Sesame Intelligence was officially listed on the main board of the Hong Kong Stock Exchange. On the first day of listing, Black Sesame closed at HK$20.45, a drop of 27% compared to the prospectus price target, with a total market cap of HK$11.6 billion.

Aug.12th: The China Securities Regulatory Commission (CSRC) has announced the filing notice of Horizon Robotics' overseas offering and listing, marking the official approval of Horizon's Hong Kong IPO by the CSRC. According to the information released by the CSRC, Horizon intends to issue 1.15 billion overseas-listed ordinary shares on the Hong Kong Stock Exchange.

Aug.14th: WeRide has received approval from the state of California, US to allow its autonomous driving cars to test carrying passengers. California Public Utilities Commission (CPUC) granted WeRide a three-year license to carry passengers in its autonomous driving test cars, with or without a driver on board. However, WeRide is still not allowed to offer paid rides to public and charge fees.

Aug.15th: RoboSense has released its interim results report for 2024. In the first half of 2024, RoboSense reached total revenue of RMB727 million, representing YoY increase of approximately 121%, of which approximately RMB610 million generated from its ADAS LIDAR products, representing a significant increase of 315% compared to approximately RMB150 million during the same period in 2023. In the first half of this year, RoboSense achieved gross profit of RMB99 million, representing YoY increase of approximately 670%.

Aug.20th: HESAI announced its unaudited financial data for the second quarter of 2024. During the quarter, HESAI Technology achieved revenue of RMB460 million, representing YoY increase of only 4.2%, while total LiDAR deliveries accumulated to 86,526 units, an increase of 66.1% YoY. Global ADAS deliveries represent 93% of total deliveries. The overall gross profit of the company was approximately RMB210 million.

Aug.21st: Zeekr announced that it has been awarded L3 autonomous driving test license for Hangzhou's high speed road, opening a dual-city test of L3 autonomous driving including their existing Shanghai permit. Zeekr’s Intelligent Driving is equipped with 31 sensing hardware, which provides strong hardware support for intelligent driving, matching the NVIDIA DRIVE Orin intelligent driving system-level chip with an arithmetic power of up to 508 TOPS.

Aug.21st: Desay SV disclosed its 2024Q2 report. The tier 1 supplier achieved revenue of RMB 11.7 billion, an increase of 34% YoY, and a net profit of 838 million yuan, representing 38% YoY increase. Desay SV is focused on three business segments: intelligent cockpit, intelligent driving and network connection services.

?Aug.22nd: Nine automakers, including Nio, BYD, and Xpeng, were granted approval by China’s Ministry of Industry and Information Technology to conduct Level 3 autonomous driving tests on public roads. This allows limited driver disengagement during driving, with testing locations spread across seven major cities including Beijing and Shanghai. These tests mark a significant step toward the commercial launch of semi-autonomous vehicles in China.

Aug.25th: Wuhan remains a key testing ground for autonomous driving with Baidu’s RoboTaxi service deployment, Apollo Go, which continues to lead with significant progress. Having said that, pending issues include low availability and difficulties navigating in bad weather. Despite the challenges, Wuhan’s trials are considered vital for China’s ambition to dominate the autonomous vehicle market.

Aug.27th: Huawei and Xpeng, are doubling down on autonomous driving innovations, focusing on end-to-end solutions that aim to streamline machine perception and control. In this way the tech teams plan on moving toward a blend of traditional rule-based approach and newer AI-driven models, seeking to enhance vehicle navigation in complex urban settings.

Aug.29th: TuSimple reached a settlement agreement on a lawsuit for $189 million. This comes after the company was accused of defrauding shareholders, inflating its safety record and concealing the control of three insiders over a Chinese trucking competitor. TuSimple has deposited the $174 million settlement into an escrow account and its insurer has paid $15 million.

?Aug.29th: Pony.ai received permission to test its autonomous vehicles on expressways in Shenzhen, expanding its RoboTaxi operations. The company has accumulated over 35 million kilometers of test driving, demonstrating steady growth.

Aug.31st: BYD announced a partnership with Huawei to integrate its advanced autonomous driving system into off-road EVs, starting with the Fangchengbao lineup. This collaboration highlights the increasing synergy between Chinese automakers and tech companies as they strive to lead in smart vehicle technology.

Aug.31st: BMW is accelerating the development of its autonomous driving technology in China, setting up new facilities to enhance its capabilities. This move positions BMW to compete more aggressively with local players, as foreign automakers ramp up investments in the Chinese market.

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Sources: TechNode; Evoltronic; Pony.ai; Zeeker; CnEVPost; CGTN; Mobileye; Bloomberg; Xpeng; Mercedes-Bentz; Automotive News; Horizon Robotics; EnGear; Cyprus Mail; Hesai; Sixth Tone; Gasgoo; Robosense; Big News Network; Shanghai Nonferrous Metals; Desay SV; TechCrunch;