THIS MATERIAL IS A MARKETING COMMUNICATION.
Autonomous Driving: More Players Enter the Fray
Autonomous driving technology continued to grow at an unprecedented pace in the first half of 2021. There are currently six levels of vehicle autonomy based on the Society of Automotive Engineers definition: the industry newly launched automobile models are mostly equipped with partial “hands off” automation at Level 2 (L2) driving, which paved the way for further advancement to high automation in Level 4 (L4). From assisted driving to full automation, cars will become data centers on wheels, separated into three domains:
- Perception: self-driving cars use a combination of high-tech sensors, cameras, light detection and ranging (LiDAR), radar and sonar, combined with state-of-the-art software to process the environment around the vehicle, in real time. Back in 2016-2018, a fierce debate raged over which sensor was the best. For example, Google was adamant that LiDAR is the only sensor needed, as it detects objects and environments through shorter waves. Yet news on Tesla’s supercomputer-in-training reignited discussions about a vision-only future for self-driving without radar/LiDAR. Currently, most companies in China that focus on L4 autonomous driving technology use multiple, and often, overlapping perception tools to ensure safe and reliable operation.
- Planning: path planning for autonomous vehicles involves computing hundreds of trajectories for the vehicle to navigate around all other surrounding objects, sending instructions to the physical controls of the car.
- Control: a control system transposes the planned motion into executable control commands while ensuring the system dynamic constraints.
Following internet companies (Baidu, DiDi), electric vehicle makers, original equipment manufacturers (OEMs) and many startup companies that focus on improving the robustness and optimisation of autonomous driving system, more players like Huawei and Xiaomi have entered the fray and as a result of further intensifying competition.
With its smartphone business struggling under the US sanction, Huawei has diversified into the automotive market and set up partnerships with various industry players, such as Beijing Automotive Group (BAIC), Chongqing Changan Automobile Co and Guangzhou Automobile Group Co, to develop its own self-driving technology.
Partnerships between the likes of Huawei and Chinese car manufacturer Arcfox has resulted in the launch of the first electric car with fifth-generation (5G) technology and autonomous-driving features that runs on Huawei’s Harmony operating system. The car includes LiDAR and vehicle-to-everything (V2X) communication technology that provides additional information to the car in a bid to increase safety and prevent collisions.
Xiaomi also has plans to make EVs using Great Wall Motor’s factory. For Xiaomi, competitors not only include traditional OEMs, but EV startups such as Xpeng, Nio and Li Auto, who have already debuted multiple models and are often compared to industry leader, Tesla. These companies strive to differentiate from each other by investing in functions from in-car entertainment to autonomous driving.
We expect OEMs to continue collaborating with autonomous driving companies to develop vehicle autonomy, as it challenges OEMs to build competitive in-house teams for high driving automation (L4) and full driving automation (L5) development. On the other hand, autonomous driving companies will likely rely on OEMs to provide drive-by-wire ready vehicles–otherwise known as a car that has its three main driving components of the throttle, brakes and steering, replaced by electric controls—to optimize L4 functions.
The Ministry of Industry and Information Technology (MIIT) is drafting regulations to allow testing smart-connected vehicles on the nation’s highways. The new regulation implies China is ready to catch up with its developed market peers when it comes to vehicle autonomy. With rising number of companies committing capital and human resources, in combination with continuous government support, China is already at the forefront of autonomous driving technology. A large-scale rollout in autonomous passenger vehicles fields such as Robotaxi is likely to happen in the medium-term but hurdles remain. These include both regulatory concerns on safety and mass production progress in autonomous algorithm-enabled smart cars.
Elsewhere, commercial vehicles, manufacturing and logistics parks, airports and line-haul transportation—by land, air or water—is also advancing. For example, TuSimple is the first autonomous freight network company, that incorporates autonomous trucks and advanced vehicles, to be listed in the US.1
As the sector rolls out more advances in autonomous driving, we expect some significant investment opportunities to emerge within the autonomous driving supply chain, as demand for smart vehicles continues to rise.
Staying Ahead with Mirae Asset’s Latest Insights
Disclaimer & Information for Investors
No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.
The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.
Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.
The Company’s Prospectus and the KIIDs can be obtained from www.am.miraeasset.eu/fund-literature/ . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.
A summary of investor rights is available in English from www.am.miraeasset.eu/investor-rights-summary/.
The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
Hong Kong: This document is intended for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Copyright 2023. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.