On March 10, He Xiaopeng, Chairman of Xiaopeng Motors (09868.HK), offered fresh insights into the fundamental differences between smart cars and AI-powered vehicles. He emphasized that conventional smart cars operate primarily based on algorithms and rules crafted by programmers, whereas AI cars leverage training and reasoning to navigate their surroundings. Traditional smart cars often include rules laden with millions of assumptions, which can constrain autonomous driving capabilities and necessitate a plethora of additional rules to mitigate shortcomings. Consequently, while L4 autonomous driving may excel in specific, controlled environments, it faces challenges in broader, real-world adoption. Conversely, AI cars, through extensive training, can adeptly manage a diverse array of unique scenarios, demonstrating nearly limitless potential. Additionally, He Xiaopeng shared that Xiaopeng Motors has made strides in the realm of AI cars, aiming to achieve L3 autonomy by the second half of this year, with aspirations to attain even higher levels of autonomous driving in the years to come.