The industry is undergoing a sudden change, and no internal letter has been issued: Next year we will win the life-and-death battle of intelligent driving.

At the end of the year, the smart car industry experienced a sudden change.

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• On the eve of the Guangzhou Auto Show, Xiaomi’s first car was revealed;

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• At the auto show, various car companies staged a flagship battle;

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• The auto show has just ended, and Huawei suddenly announced the split of its car BU business.

Foreign-funded, independent, joint venture, and cross-border car companies, all forces will fight for the decisive battle in 2025 in advance. The penetration rate of smart new energy vehicles is accelerating towards 50%, which presents both opportunities and challenges to the upstream supply chain.

2024 will be a big year for the mass production of high-end smart driving functions. It will also be a year of fierce competition in advanced technology, engineering delivery, and cost-effectiveness.

On November 29, on the occasion of the fourth anniversary of the founding of Haimou Zhixing, Haimou Zhixing Chairman Zhang Kai and CEO Gu Weihao jointly released an internal letter "Haimou Officially Enters the Autonomous Driving 3.0 Era", comprehensively reviewing the development of intelligent driving in the past four years. Race track troops are pouring in, and all the heroes are competing for the road to mass production in China's autonomous driving industry.

At present, the intelligent driving track is experiencing rapid development and competition is becoming increasingly fierce.

The letter mentioned, "Huawei, which is currently the most outstanding performer in the industry, is just like Tesla back then. It is a 'catfish' on the autonomous driving track. We admire it very much and must learn from it. At the same time, we must push ourselves and be the same." Ten enemies, desperate situation to break through.”

Zhang Kai and Gu Weihao knew that there would be four battles to be fought by the end of 2024.

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• First of all, it is a life-and-death battle to overcome the hurdles and win the tough battle of urban NOH implementation;

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• Secondly, we need to focus on mass production and delivery of passenger cars to ensure that the second-generation HPilot smart driving product will be delivered next year;

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• The third is the battle to scale up end-of-line automatic distribution. It is necessary to expand the scale and scope of operations and truly complete the commercial closed loop of end-of-line unmanned distribution;

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• Finally, there is the battle between DriveGPT cloud and car-side implementation. The large model will allow Wei Mo to win the competition in another way.

"Facing the huge opportunities presented by the intelligent era, we have no shortcuts." Zhang Kai and Gu Weihao said.

The following is the full text of the internal letter from Haomo Zhixing on its fourth anniversary:

Four years is like a drop in the ocean in the long river of history, but in the ever-accelerating intelligent era, it has been a rapid change.

We often say that entrepreneurship is a "narrow escape". Data once showed that in China's entrepreneurial boom, only 1% of companies can survive for more than four years. Now Weimo has become one of them, outperforming 99% of start-ups, which is not easy!

Four years, 1,461 days and nights of ups and downs. Haimo people gathered from all over Baoding, Beijing, Shanghai, and Shenzhen, and the gears of fate began to turn. The road is covered with blue threads, and the wind and rain are blowing. I would like to express my gratitude to every Haimao student for their hard work, which has made Bimo the real mass production king in China’s autonomous driving industry.

Looking back on the past, the intelligent driving track has seen an influx of troops, and all the heroes have emerged together. Looking to the future, we can only win the final victory by continuing to grasp cutting-edge technology trends, learning from customers and peers, meeting challenges, overcoming crises, and accumulating experience and capabilities.

Entering the era of autonomous driving 3.0

In 2023, three keywords can be used to summarize everything: mass production, technology, and commercialization. This is also the foundation and confidence for Wei Mo to gain a foothold in the torrent of competition.

In terms of mass production, Haimo's first-generation HPilot assisted driving products have been installed on more than 20 models, and the monthly active usage rate of high-speed NOH users exceeds 88%. A sharp sword can be hammered into a weapon, and iron can be tempered into steel. Whenever we see users sharing their feelings and feedback about using Feimo's smart driving products, it is the moment when we gain the most and are happiest. Good products are our unremitting pursuit.

In order to seize a larger main sales market for automobiles, Haimou will release the second generation of three thousand-yuan all-in-one parking and parking NOH models in October 2023, using "ultimate cost performance" to fully meet the mass production needs of smart driving for high, medium and low-priced models. This will ensure that Haimou continues to occupy a leading position in the fiercely competitive smart driving market in 2024.

The second is to take root in technology and adhere to long-term technology. Haimo is the first in China to lay out the development direction of autonomous driving technology with large computing power, large models, and big data. In early 2023, we built MANA OASIS (Snow Lake Oasis), the largest intelligent computing center in China's autonomous driving industry, providing Haimo with surging computing power for data processing and cutting-edge large model exploration. Under the current wave of AI large models, Haimo is the first to release the industry's first autonomous driving generative large model DriveGPT (Xuehu Hairuo). Significant breakthroughs and innovations have been achieved in model construction.

Back in September 2022, we were the first in the industry to propose the concept and classification standards of the "Autonomous Driving 3.0 Era": in terms of data scale, smart driving users have traveled at least 100 million kilometers; in terms of perception technology, multi-modal Sensors jointly output results; in terms of cognitive technology, interpretable scene-based driving common sense is the main focus; in terms of models, large models and big data enable self-training and self-evolution. Taking data drive as the core has become a symbol of entering the era of autonomous driving 3.0.

Today, we are happy to announce that the assisted driving mileage of Haimou passenger cars has officially exceeded 100 million kilometers, which marks that Haimou has become the first Chinese autonomous driving technology company to enter the era of autonomous driving 3.0. This is a new milestone for Feimo to build a data closed-loop system around data intelligence MANA. Facing the era of autonomous driving 3.0, Feimo will continue to invest in the research and development of large models, large computing power, and big data technology, increase its self-developed sensing technology, and use its technical base to ensure the rapid development of Feimo's products.

Finally, accelerate commercialization and ecological development. Since its inception, Haomo has accurately anchored the three laws of autonomous driving development, adhered to a progressive route, and paved the way for commercial development.

In the field of passenger cars, Haimou has won fixed-point contracts with many OEMs, and more customers are in the process of development; in the field of terminal logistics automatic distribution, Xiaomotuo has delivered a total of more than 230,000 orders, and will be the fourth in 2023. The company achieved profitability in the fulfillment and delivery scenarios of supermarkets in the quarter. From a commercial perspective, Hao Mo has the ability to become the first company in the world with large-scale profitable L4 business.

In 2023, Haomo's headquarters will be officially settled in Shunyi District, Beijing, providing broader resources and environment for the company's future development.

Win the life-and-death battle of smart driving

At present, the intelligent driving track is experiencing very rapid development, and competition is becoming increasingly fierce and intense.

Looking back on the development history of smart driving, the first competition began when Tesla introduced high-speed navigation assisted driving to China in 2019. The second competition will start in 2022, and the wave of smart driving into cities will break out in 2023. Urban NOA not only demonstrates the highest level of assisted driving, but also opens a new era towards fully autonomous driving. There are many strong players on the track this time, and even dark horses have suddenly emerged.

Huawei, the most outstanding performer, is just like Tesla back then, a "catfish" on the autonomous driving track in 2023. We admire him very much and must learn from him. At the same time, we must push ourselves even more to fight one against ten and break through the desperate situation.

In 2024, there are four battles to be fought.

First, it is a battle of life and death with wisdom. We must overcome the hurdles and win the tough battle of urban NOH implementation. In this battle, players in the entire industry are working hard, and they are also trying their best to gather elites to create urban navigation-assisted driving products with stronger perceptual generalization capabilities. We will continue to optimize our team configuration, R&D structure and development process to ensure mass production of urban NOH.

Secondly, we will focus on customers and ensure the delivery of passenger cars to customers to ensure that the second generation of HPilot smart driving products will be delivered and put into cars next year. 2024 is the year of the explosion of smart driving. Only by using "extremely cost-effective" products to develop more customers and achieve large-scale commercial mass production is the only way out for Haomo products.

Third, the battle to scale up terminal automatic distribution. Haimo Xiaomotuo has achieved product leadership in terms of vehicle cost and unmanned capabilities, and has achieved demonstration operations with positive revenue under contract fulfillment scenarios. Next year, we will continue to expand the scale and scope of operations together with our partners, and truly complete the commercial closed loop of end-of-line unmanned delivery.