China Passenger Car NOA Research 2024: L2.9 & L2.5 Expanding in Mid/Low-End Markets
The “China Passenger Car Highway & Urban NOA (Navigate on Autopilot) Research Report, 2024” from ResearchAndMarkets.com offers an in-depth analysis of the evolution and penetration of autonomous driving technologies in the Chinese automotive market. This report provides a comprehensive overview of the key trends driving the development of Passenger Car NOA, particularly focusing on the shift from L2 to L2.5, L2.9, and even L3 autonomous systems. With the rise of both Car Highway NOA and Urban NOA technologies, the industry is undergoing rapid transformation, with a growing number of Original Equipment Manufacturers (OEMs) and suppliers accelerating their efforts in autonomous driving solutions.
Key Trends in the Development of Passenger Car NOA
- Continual Increase in Highway NOA and Urban NOA Penetration Rates
Since Tesla first introduced Highway NOA to the Chinese Car market in 2019, the technology has been rapidly adopted, with increased penetration rates observed in both domestic Car independent and joint venture brands. By the end of 2023, the number of domestically produced ADAS (Advanced Driver Assistance Systems) passenger cars with L2.5 and above had reached 1.484 million units, reflecting a penetration rate of 7.1%.
This represents a 78.3% year-on-year increase, highlighting the Car growing acceptance of autonomous driving features. By mid-2024, the sales of domestic new passenger cars with L2.5 and above are expected to surpass 1 million units, with a penetration rate of 11%. Within this segment, the growth of Urban NOA (7.6% penetration) and Highway NOA (3.4% penetration) continues to be significant.
- Urban NOA Enters an Arms Race in 2023-2024
The race to implement Urban NOA has intensified since 2023, with major OEMs such as Tesla, NIO, Xpeng Motors, Li Auto, and Huawei Systems playing a significant role. Urban NOA technology has become an area of intense competition, with a large number of OEMs making strides in its mass production. By 2024, many OEMs have successfully mass-produced models with L2.9, accelerating the industry’s transition towards more advanced autonomous driving solutions.
- Joint Venture OEMs Accelerate Their Follow-up of Highway NOA
Initially, Highway NOA technology was dominated by local market players, with foreign brands lagging behind. However, from 2023 onwards, joint venture OEMs have started to accelerate their efforts to implement Highway NOA. By mid-2024, joint venture OEMs have sold approximately 54,000 Highway NOA-equipped units in China, marking a penetration rate of 0.6%. Meanwhile, local independent OEMs have seen impressive growth in their Highway NOA sales, reaching 454,000 units by the end of 2023, with a penetration rate of 2.2%, and further increasing to 2.8% by mid-2024.
- L2.9 and L2.5 Accelerate Their Penetration into Mid- and Low-End Markets
One of the most notable trends in the Chinese autonomous driving market is the increasing penetration of L2.9 and L2.5 technologies into mid- and low-end passenger car segments. Models priced between 200,000 and 300,000 yuan have witnessed the most significant growth in Urban NOA installations. In the first half of 2024, the ‘200,000-250,000 yuan’ price range saw the fastest growth in the adoption of Urban NOA technology. This development marks the arrival of an era of technological equality, where advanced ADAS features are no longer limited to high-end models but are becoming standard in more affordable family cars.
- The Arrival of Map-Free Urban NOA Solutions
A key milestone in the development of Urban NOA is the introduction of map-free navigation systems, which do not rely on high-definition (HD) maps. This technological shift is gaining momentum, with many domestic OEMs such as Li Auto, Xpeng Motors, Huawei Systems, GAC, Great Wall Motors, Zeekr, and others, embracing map-free NOA solutions. By 2024, these solutions are expected to be widely available in passenger cars, representing a significant step forward in reducing the reliance on detailed and constantly updated HD maps, which can be both expensive and complex to maintain.
- The Adoption of End-to-End Foundation Models in Vehicles
End-to-end foundation models are poised to play a pivotal role in the advancement of intelligent driving technology. By 2024, several emerging OEMs are set to deploy their self-developed foundation models in vehicles, helping to upgrade the capabilities of autonomous systems. These foundation models use deep learning and real-time data processing to make more accurate decisions in complex environments, significantly enhancing the overall driving experience. Through continuous learning and adaptation, these models are expected to improve the flexibility and reliability of autonomous systems in dynamic driving conditions.
- Vision-Only Perception Route: A New Technological Direction
As the intelligent driving competition continues to evolve, two main technical routes have emerged, reflecting diverse approaches to autonomous driving. The first is the LiDAR multi-fusion perception model, championed by companies like Huawei, which integrates LiDAR data with map-free or lightweight map solutions. This approach reduces dependence on HD maps while providing precise perception capabilities.
The second route, advocated by companies such as Tesla, Xpeng Motors, and Jiyue, is the vision-only perception strategy, which uses cameras and advanced computer vision to navigate and make decisions without LiDAR. Xpeng Motors, for example, introduced the AI Eagle Eye Vision Solution in 2024, which combines vision-only technology with an optional LiDAR system, marking a shift toward lighter and more cost-effective autonomous driving solutions.
Market Trends and Key Players in the NOA Sector
The report highlights the various solutions provided by major OEMs and suppliers in China’s growing NOA market. Some of the key players in the sector include:
- OEMs: Companies such as Xpeng Motors, Li Auto, NIO, IM Motors, BYD, and Tesla are leading the charge in deploying NOA systems across a range of passenger vehicles. These companies are focusing on integrating both Highway NOA and Urban NOA features into their vehicles, offering consumers increasingly advanced autonomous driving capabilities.
- Suppliers: A number of Chinese and international suppliers are developing the essential components and software for NOA-equipped vehicles. Domestic suppliers like Desay SV, Jingwei Hirain, Huawei, Baidu Apollo, DJI, and others are at the forefront, providing key technologies such as LiDAR, cameras, and sensors. International suppliers like Bosch, Continental, ZF, Aptiv, and Mobileye are also contributing to the development of NOA solutions for the Chinese market.
- Technological Solutions: Suppliers are focusing on developing sensor solutions, end-to-end foundation models, and map-free navigation technology. These solutions are expected to accelerate the deployment of higher-level NOA systems, ultimately making autonomous driving safer, more efficient, and more accessible to consumers.
The Chinese autonomous driving market is entering a new phase, with both Highway NOA and Urban NOA technologies continuing to expand in terms of penetration and functionality. With OEMs and suppliers racing to implement advanced autonomous driving systems, the competition is intensifying, particularly in the mid- and low-end segments where L2.9 and L2.5 systems are increasingly becoming standard.
The shift toward map-free solutions, end-to-end foundation models, and vision-only perception technology represents a significant step in reducing the complexity and cost of autonomous driving, making it more accessible to a broader range of consumers.
As the industry continues to evolve, the adoption of NOA technology is expected to drive significant changes in the automotive landscape, providing safer, more efficient driving experiences and accelerating the transition toward fully autonomous vehicles in the near future.
