China Autonomous Driving Leaders pull adoption forward

Research evidence excerpt

China Autonomous Driving Leaders pull adoption forward

11 June 2026

China Autonomous Driving Equities Auto & Auto components

Leaders pull adoption forward China

◆ BYD’s AD guarantee and Tesla FSD Supervised could Yuqian Ding*

accelerate consumer adoption and monetisation Head of China Technology & Autos Research The Hongkong and Shanghai Banking Corporation Limited

yuqian.ding@hsbc.com.hk

◆ Robotaxi commercialisation continues to improve, despite +852 2288 5108

recent regulatory volatility Michel Liu* (Reg. No. S1700524090001)

Analyst, China Autos

HSBC Qianhai Securities Limited

◆ We prefer Pony, WeRide, Horizon Robotics, and XPEV, all michel.m.liu@hsbcqh.com.cn

rated Buy +8610 5795 2351

Li Yang*

Markets remain skeptical, but adoption is moving forward: Weak auto beta, AI The Hongkong and Shanghai Banking Corporation Limited li01.yang@hsbc.com.hk

liquidity rotation and regulatory concerns have weighed on China AD stocks YTD. +852 2288 6216

However, underlying commercialisation continues to improve. Tesla’s FSD upcoming

rollout in China and BYD’s expansion of city-level NOA into the mass market * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

represent important milestones that could improve consumer awareness, usage and

willingness to pay. While monetisation remains under pressure given the challenging

demand backdrop, leading players such as BYD are increasingly separating AD from

traditional vehicle hardware, creating a clearer path toward software and service

revenues down the road.

BYD and Tesla could reset the AD adoption curve: Tesla’s China FSD upcoming

rollout and BYD’s nationwide city-NOA expansion mark an important shift from

technology demonstration toward mass-market adoption.