Automakers betting on smarter driving perks

Smart driving features, including automatic parking, are set to become a key competitive factor as Chinese carmakers jostle for more market share by making intelligent driving features standard in mass-market vehicles.

Typically, such features have required buyers of new vehicles to fork out more money to enjoy their convenience. However, BYD, China's largest electric vehicle manufacturer, has fired the first salvo in the race to expand access to smart driving features even in mass-market vehicles.

BYD announced last month that it is equipping its entire lineup with the Advanced Driving-Assistance System, or ADAS. Among its functions, the system enables vehicles to drive themselves on expressways and to park automatically.

The most affordable of its first 21 models with the feature on the market is the Seagull, priced at 69,800 yuan ($9,640).

Models with similar functions in the Chinese market are usually priced from 150,000 yuan, according to consulting firm McKinsey.

BYD said its move aims to offer volume car owners access to intelligent driving features to increase safety. It said 21 percent of traffic accidents in China are attributable to fatigued drivers, which can be prevented by automatic emergency braking or steering.

"We believe that intelligent driving should not be a luxury but a standard feature for all consumers," said Wang Chuanfu, chairman and president of BYD.

"By making high-level smart driving available across our range, we are accelerating the transition toward smarter, safer mobility," said Wang.

Also in February, State-owned automaker Changan, which is a partner of Ford and Mazda, unveiled its smart strategy. Chairman Zhu Huarong said it will equip vehicles priced around 100,000 yuan with LiDAR technology, which is crucial to smart driving, this year.

Geely followed, announcing earlier this month a smart driving system, the new G-Pilot, which will be available on cars under the Geely Auto, Galaxy, Lynk & Co and Zeekr brands.

Analysts said that the move by these major automakers, especially BYD, will force competitors to follow suit, potentially triggering a wave of industry-wide adoption of smart driving systems as standard offerings.

This will put pressure on both domestic startups and international automakers operating in China to accelerate their own ADAS deployment.

Traditionally, advanced features such as lane-keeping assistance, adaptive cruise control and automatic emergency braking have been reserved for premium brands.

Tesla, Xpeng and Nio have offered high-level ADAS as part of their differentiation strategy, with some, like Tesla, charging thousands of dollars for its Full Self-Driving package.

"The competitive advantage in the car industry is shifting rapidly toward AI-driven intelligence.

"Future development must be based on this new competitive landscape," said Zhang Yongwei, secretary-general of the China EV 100, an NEV industry think tank.

But automotive executives are divided on the trend of availing smart driving features in mass-market cars.

Yu Chengdong, head of Huawei's smart driving solutions, said there is a big difference between "it manages to work" and "it works well", in a thinly veiled jab at BYD, which develops its own smart driving system.

Huawei is widely accepted as a top-level smart driving solutions provider in China, which has attracted partners including traditional carmakers BAIC and JAC.

But Xpeng CEO He Xiaopeng has applauded the move by automakers including BYD on Sina Weibo, saying that they are helping to popularize smart driving in China and across the world, more so as Chinese vehicles are getting popular in overseas markets.