Youjia Innovation Partners with Changan Automobile for ADAS Control Units

On July 14, Youjia Innovation (2431.HK) officially announced its partnership with Changan Automobile to provide advanced driver assistance system (ADAS) domain controllers for several of its self-owned brands and key models. The first cooperative model is expected to enter mass production in the fourth quarter of 2025, marking a significant acceleration in the penetration of ADAS into mainstream markets. The ADAS domain control solution is based on a multi-sensor perception combination and an efficient system framework, maximizing chip capabilities and supporting features like automatic emergency braking and fully automated parking. The aim is to provide practical safety guarantees and driving convenience for the widest consumer base. This solution has been validated through market mass production and has a highly platformized characteristic, allowing for flexible adaptation to the intelligent needs of different vehicle models, significantly shortening the R&D cycle for OEMs and accelerating the mass production of ADAS. This lays a solid foundation for the upcoming Q4 delivery milestone. The project focuses on the core of China's automotive consumption—economical models priced below 200,000 yuan—injecting certainty into the rapidly growing L2 level ADAS market. Strong industry data confirms the value of this strategic direction. According to the Gaogong Intelligent Automotive Research Institute, over 2.9 million domain controllers for integrated driving and parking will be standard in the passenger vehicle front-mounted market in China by 2024, marking an 86.59% year-on-year increase. Furthermore, data from Gaishi Automotive indicates that from January to April 2025, the penetration rate of the domestic ADAS domain control market has risen to 21.3%, with models priced below 200,000 yuan becoming the most crucial growth engine. As demand surges and technology advances drive down costs, quality and cost-effectiveness will become key differentiators for suppliers. Leveraging its full-stack self-research capabilities, Youjia Innovation effectively reduces overall system costs while continuously optimizing performance. Its cost-effective integrated driving and parking solution has become the preferred choice for many automakers looking to implement L2 level intelligent driving features. Notably, Youjia Innovation has previously established deep cooperation with Changan Automobile on high-end domain control projects. The recent acquisition of significant contracts from leading industry players underscores the market's recognition of the company's strong R&D and delivery capabilities. In light of widespread challenges in the industry regarding the implementation of advanced scenarios and the homogenization of mid-level functionalities, Youjia Innovation has completed a deep strategic layout: focusing on scaling mid-level solutions to promote the standardization of ADAS in models priced below 200,000 yuan, while also tackling high-end challenges with its high-performance iPilot 4 series domain controller, which will provide technical support for the large-scale implementation of all-scenario assistance driving. This comprehensive product layout not only enhances the company's self-sustaining capabilities but has also enabled it to secure multiple project contracts from leading automakers in the first half of this year, covering traditional self-owned brands like Changan Automobile, emerging players, joint ventures, luxury brands, and internationally renowned Tier 1 suppliers. Currently, as ADAS transitions from the 'trial phase' to the 'popular phase', the industry's competitive focus has shifted from merely having functionalities to the quality of experience and cost rationality. With the accelerated implementation of regulations regarding AEB standardization and conditional Level 3 autonomous driving, the delivery of intelligent driving solutions will face more challenging 'deep water zone' obstacles. Therefore, Youjia Innovation's acquisition of a repeat order from Changan Automobile signifies a high level of trust from leading industry players regarding the reliability of its products and the certainty of large-scale delivery. As of 2024, Youjia Innovation has mass-produced solutions for over 35 global vehicle manufacturers, establishing mature engineering capabilities and strong commercialization potential, which will serve as critical leverage for the company to tap into future market growth and gain a larger market share.