Dongxing Securities: Accelerated commercial implementation of L3 in the automotive industry is expected to promote batch application of intelligent chassis

The Zhitong Finance App learned that Dongxing Securities released a research report saying that the Ministry of Industry and Information Technology approved Changan and BAIC to enter models equipped with L3 class autonomous driving functions, indicating that L3 commercial implementation is expected to accelerate. L3 autonomous driving will promote batch applications of intelligent chassis, including active suspension, line control (EMB), and wire control steering (SBW). The introduction of relevant mandatory national standards will support mass production. Investors can focus on automakers and smart chassis industry chain companies that have closely cooperated with Huawei.

Dongxing Securities's main views are as follows:

incident

Recently, the official public account of the Ministry of Industry and Information Technology published an article. Two automobile companies, Chongqing Changan Automobile Co., Ltd. and BAIC Blue Valley Magna Automobile Co., Ltd. submitted applications for admission to intelligent connected vehicle products equipped with L3 level conditional autonomous driving functions to the Ministry of Industry and Information Technology. According to the “Administrative Measures on Road Motor Vehicle Manufacturers and Product Entry Management Measures” and other relevant regulations, the Ministry of Industry and Information Technology has conditionally licensed related products in the 401st batch of “Notice”.

L3 commercial implementation is expected to accelerate

L3 level autonomous driving corresponds to conditional autonomous driving. When the intelligent driving system is in operation, the system achieves continuous horizontal and vertical movement control of the vehicle, and the system detects targets and events and responds appropriately. Its operating range is limited, and when it exceeds its operating range, the driver needs to take over in time. However, the essential difference between assisted driving such as L3 and L2 is that they can achieve autonomous driving within a specific range. This “Road Motor Vehicle Manufacturers and Products” (401st batch) includes Changan and BAIC cars equipped with L3 autonomous driving functions, reflecting China's license for L3 class products. The bank believes that more vehicles equipped with L3 functions will be approved in the future, and the commercialization process of the L3 is expected to accelerate.

L3 commercial will promote the mass application of intelligent chassis. According to the official account of Changan Automobile, the cars approved this time

The model is a deep blue automobile product owned by Changan. It is equipped with its “Tianshu Intelligence” self-developed technology system, and its configuration plan has not been disclosed. BAIC, on the other hand, is the Jihu Alpha S (L3 version) owned by BAIC New Energy. This version is equipped with a high-performance redundant sensor system, including 34 high-performance sensors including 3 lidars. The car has achieved full-link safety redundant backup in terms of sensing, decision-making, steering, braking, communication, power supply, and positioning. The bank believes that China's automobile intelligence has made rapid progress at all levels, from perception, decision-making, and planning to execution, on the hardware and software side. With the commercial launch of the L3, intelligent chassis (active suspension, line control, and wire control steering) will become the final puzzle of smart driving, protecting the launch of L3 and higher intelligent driving. The bank is optimistic about future mass production prospects for active suspension, line control (EMB), and wire controlled steering (SBW). Among them:

1) Active suspension: It will integrate air springs, variable damping shock absorbers, and suspension actuators. The road pre-targeting system actively adjusts the suspension stiffness and damping coefficient according to road conditions to achieve higher handling and comfort.

2) Line control (EMB): Braking systems experience traditional mechanical braking, electronic braking to line control. The EMB solution will be the development direction of the braking system. The mandatory national standard GB21670-2025 “Technical Requirements and Test Methods for Passenger Vehicle Braking Systems” implemented on January 1, 2026 provides an industry standard for EMB mass production applications.

3) Wire-controlled steering (SBW): In line with the development direction of braking systems, wire-controlled steering will be a solution to achieve advanced autonomous driving steering systems. In December 2025, China also introduced a mandatory national standard for wire-controlled switching, providing an industry standard for mass production plans for this system.

investment strategy

This time, cars equipped with the L3 system obtained permission from the Ministry of Industry and Information Technology, which provided policy support for the popularization of advanced intelligent driving in China. Companies that continue to deploy in this field will benefit. It is recommended to focus on two directions: 1) On the vehicle application side, leading companies have gradually established leading advantages in the fields of training data, training facilities, and smart driving ecology. With the accumulation of technology in the ICT field, Huawei continues to expand its business into the fields of connectivity, computing, etc., and is committed to building an intelligent world where everything is connected. Huawei is gradually entering a harvest period in the smart car field. The relevant beneficiaries are car companies that have cooperated deeply with Huawei, including Cyrus, JAC, BAIC Blue Valley, SAIC Motor Group, and Changan under the HI model. 2) In the field of smart chassis, benefiting from the commercial launch of L3, smart chassis are expected to achieve rapid batch application in 2026. Benefiting from the introduction of mandatory national standards for line control steering, and active promotion by industrial chain companies, the bank believes that active suspension, line control, and wire control steering will enter the mass application stage in 2026 and beyond. Relevant beneficiaries include Baolong Technology and Tuopu Group in the active suspension category. Bethel of Line Control Group and Asia Pacific Co., Ltd. Nexteer in the wire-controlled steering class.

Risk warning: The boom in the automotive industry falls short of expectations, the promotion of intelligent driving falls short of expectations, and the promotion of related technologies and industry chains falls short of expectations.