In December 2025, the Ministry of Industry and Information Technology unveiled the first batch of access permits for L3-level conditionally automated driving vehicles. Among the approved models were the Changan Deepal SL03 and the BAIC Arcfox Alpha S, which were cleared for pilot testing on designated roads in Beijing and Chongqing. This policy milestone signals a pivotal shift in autonomous driving from technical experimentation to commercialization, triggering a surge in demand for key components such as LiDAR, domain controllers, and high-definition maps.

With the penetration rate of new energy vehicles surpassing 50%, intelligent driving features have emerged as a top priority for consumers when purchasing vehicles. This trend is driving rapid technology adoption across lower-tier markets. However, the industry is undergoing a fierce reshuffling: automaker-backed unicorns like Haomo.ai have faced setbacks due to sluggish technological advancements and ineffective cost management. In contrast, third-party players such as Envisioneering and Zoyu Technology have successfully implemented cutting-edge technologies through strategic partnerships with leading automakers.

Global giants like General Motors are restructuring their teams to penetrate the market, while domestic players such as WeRide and Pony.ai are rushing to list on the Hong Kong Stock Exchange, securing over HK$20 billion in financing. At the technological frontier, L3-level autonomous driving demands that the system handle all driving tasks under specific conditions. Yet, challenges persist, including the latency in human-machine handover and the allocation of accident liability.

The capital market has grown more discerning, with investments flowing predominantly toward industry leaders. The sector is now entering a phase of all-encompassing competition, encompassing technology, profitability, and commercialization. Looking ahead, it is anticipated that between 2026 and 2030, the penetration rate of L3-level vehicle models will exceed 20%, propelling a trillion-dollar transformation in the intelligent mobility market.