EV-maker BYD's Driver Assisted Technology is Attracting Analysts' Attention

As electric vehicle leader BYD ramps up its focus on driver-assistance technology, analysts predict that the company’s suppliers stand to benefit significantly.

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The automaker’s Hong Kong-listed shares recently hit an all-time high after launching a driver-assistance system across multiple models, including a budget-friendly car priced under 70,000 yuan (approximately $9,600). BYD also announced a collaboration with DeepSeek to integrate artificial intelligence into its technology.

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According to a Tuesday report from Nomura, companies supplying key components for BYD’s new system are poised for substantial growth.

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“Additionally, we believe more automakers will need to accelerate their development of smart driving features to remain competitive, which could drive demand for related components throughout the auto industry,” Nomura analysts noted.

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Among their top picks are BYD Electronics, a Hong Kong-listed subsidiary specializing in autonomous driving components; chipmaker Horizon Robotics, which also trades in Hong Kong; and U.S.-listed lidar developer Hesai Tech. Lidar, short for light detection and ranging, uses laser technology to map a vehicle’s surroundings, making it a crucial part of driver-assist systems.

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In China’s highly competitive electric vehicle market, advanced driver-assist features have become a key differentiator. Tesla, whose Full Self-Driving system has yet to receive regulatory approval in China, saw its stock decline on Tuesday after news of BYD’s latest technology rollout.

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China’s push for technological self-sufficiency—amid U.S. trade restrictions—has fueled the growth of a domestic supply chain. BYD’s recent driver-assist announcements focused solely on the Chinese market rather than its international expansion efforts.

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One of BYD’s major semiconductor suppliers is Horizon Robotics, based in Beijing. BYD founder and chairman Wang Chuanfu emphasized the importance of semiconductors to the future of electric vehicles at a Horizon Robotics event last year.

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Goldman Sachs analyst Allen Chang raised his price target for Horizon Robotics on Monday, increasing it from 6.10 Hong Kong dollars (HKD) to 6.95 HKD (approximately 89 cents), citing expectations of stronger earnings. Goldman maintains a buy rating on the stock.

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“With major automakers pushing to bring smart driving capabilities to more affordable models, we are optimistic about Horizon Robotics’ ability to secure more design wins with its Journey 6 chipset series,” Goldman’s report stated. The firm expects Journey 6 to account for 40% of Horizon’s revenue by 2027, up from just 3% this year.

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Horizon Robotics shares have surged more than 60% year to date, closing at 5.88 HKD on Thursday.

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Goldman Sachs analyst Verena Jeng also raised her price target for BYD Electronics in a separate note on Monday. The firm now values the stock at 58.46 HKD, up from 51.02 HKD, while maintaining a buy rating. BYD Electronics shares have gained over 30% this year, reaching 56 HKD as of Thursday’s close.

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Goldman’s report highlighted expectations that more than 3 million BYD vehicles will adopt advanced driver-assist features this year. Since these systems are significantly more expensive than basic car components like speakers, BYD Electronics is positioned to generate higher revenue per vehicle.

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BYD’s “Dipilot” driver-assist system varies in complexity depending on the model. The entry-level version combines Horizon Robotics’ chipsets with Nvidia’s Orin processor, while more advanced systems exclusively utilize other Nvidia chips, according to Nomura’s research.

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For versions that support autonomous driving on city streets, BYD integrates lidar sensors from companies such as Hesai Tech, Nomura added.

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Despite facing scrutiny from U.S. regulators over alleged ties to China’s military, Hesai Tech remains an attractive investment for some analysts. In mid-January, Goldman Sachs upgraded the stock from neutral to buy, citing the company’s new product cycle. The firm also raised its price target from $5.50 to $18.40, according to FactSet.

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With China’s rapid advancements in autonomous driving technology, analysts expect BYD’s ecosystem of suppliers to see continued growth as demand for smart driving features accelerates across the market.

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