China's Urban Navigate-on-Autopilot Market to Exceed CNY50 Billion by 2025

According to an industry report, China's urban navigate-on-autopilot (NOA) market is projected to exceed CNY50 billion (USD6.9 billion) by 2025, with approximately four million cars equipped with autonomous driving capabilities.

During a recent conference, a technology and financial media company, released a report stating that China's NOA market is expected to surpass CNY100 billion (USD13.8 billion) by 2027, exhibiting a compound annual growth rate of 37 percent.

NOA technologies in China are categorized into two types: highway and urban traffic. Highway NOA assists drivers in automatic lane changing, as well as entering and exiting highway ramps, while urban NOA enables drivers to park, change lanes, and overtake without manual steering.

The rise of smart electric cars is a significant driving force behind this trend. The China Association of Automobile Manufacturers reported that the penetration rate of electric vehicles (EVs) exceeded 50 percent for the first time last month, reaching 50.7 percent compared to 35.7 percent in the previous year.

Chinese vehicle brands have been embracing urban NOA since the second half of last year. Even BYD, considered a latecomer in the smart car industry, plans to install urban NOA in models of its upscale sub-brands Denza and Yangwang this year. Additionally, other domestic brands such as Aito, Xpeng, Xiaomi, and IM have announced their intention to achieve nationwide coverage of urban NOA by December.

Consumers in China are increasingly choosing advanced technologies, particularly those developed domestically. According to a recent report by McKinsey China, the primary reason Chinese consumers prefer high-profile domestic EV brands over foreign ones is the superior autonomous driving features offered by local products.