China EV Insights | Vol.029

BYD & DJI's "LINGYUAN": Redefining Smart Mobility with Automotive-Grade Drone Integration

On March 2, 2025, BYD and DJI unveiled "LINGYUAN"—the world's first vehicle-integrated drone system—in Shenzhen. Seamlessly merging drones with cars, it supports dynamic takeoff/landing at 80 km/h, speed-synced tracking (5-120 km/h), and terrain mapping. A 15-minute in-cabin fast charge delivers 40 minutes of flight. DJI's proprietary "Sky AI" powers 30 one-touch filming templates for professional content creation.

The first model equipped with the "LINGYUAN" system, the Formular Leopard 8 Drone Edition, starts at $56,500,with the system available. BYD plans to launch a basic version priced at $1,400 by the end of 2025,covering models priced above $1,400, and expand into the special-purpose vehicle market such as pickups and RVs in 2026.

Wang Chuanfu, Chairman of BYD, stated: "This is a full-stack reconstruction from the electronic and electrical architecture to the data protocol." Luo Zhenhua, President of DJI, emphasized: "The computing power of 'LINGYUAN' is three times that of consumer-grade drones, but the cost is only half."

The launch triggered immediate ripples: Tesla delayed its Cybertruck drone plan. XPeng/Li Auto accelerated rival projects.GoPro shares dropped 12% on ecosystem competition fears.

Goldman Sachs forecasts the global car-drone market to hit $20B by 2025, with China claiming 40%. As Beijing drafts technical standards, the BYD-DJI alliance aims to lead this low-altitude mobility revolution—where every drive unlocks the sky.

Tesla FSD's Rocky Start in China: High Costs Meet Local Rivals

Tesla's Full Self-Driving (FSD) system finally launched in China on February 25, 2025, but its debut has been marred by compromises. Dubbed a "watered-down version" by users, the Chinese FSD lacks key features available in North America and struggles with local road complexities.

Technical Hurdles The Chinese FSD update includes city-road Autopilot optimization and new driver monitoring but faces stark limitations:

• Limited Scope: City Navigate on Autopilot (NOA) works on just 30% of roads vs. 85% in the U.S.
• Recognition Flaws: Traffic light misidentification rates hit 5%—three times higher than domestic rivals like XPeng and Huawei. The system often fails to interpret tidal lanes or temporary road signs, forcing frequent driver takeovers.
• Data Gaps: Elon Musk acknowledged FSD's reliance on public video data for training in China, lacking localized adaptation.

Market Resistance Pricing and accessibility further hamper adoption:

• A steep $8,800 annual fee alienates cost-sensitive buyers, with only 12% of early adopters subscribing.
• Full features are limited to high-end Model 3/Y variants, while base models offer basic functions.

In contrast, Chinese automakers are undercutting Tesla with aggressive strategies:

• XPeng's XNGP covers 250 cities at one-third of FSD's cost.
• BYD's Divine Eye brings advanced driving aids to budget $9,600 EVs.
• Huawei ADS 3.0 combines lidar and cameras for 95% success in complex intersections.

Industry Impact Despite setbacks, Tesla's entry has accelerated China's autonomous driving race:

• Map providers like NavInfo are rushing to improve real-time updates.
• New 2025 regulations require government-certified scenario testing, raising compliance costs for Tesla.
• Musk's partnerships with Baidu and Tencent Cloud signal a push for better localization.