At present, the trend of intelligent electric vehicles is unstoppable. As upstream and downstream enterprises in the automotive industry chain continue to "overcome obstacles and overcome obstacles", basic software has emerged in their vision, becoming a must overcome challenge for automotive enterprises on their way to success.

　　Software is the soul of the new generation of information technology, the foundation of the development of the digital economy, and the key support for the construction of a strong manufacturing country, a strong network country, and a digital China. At present, the country proposes to fight the battle for the localization of scientific and technological instruments, operating systems, and basic software.

　　The basic software industry is a fundamental, strategic, and leading industry that is closely related to the overall development of the national economy and society. It is of great significance in supporting economic and social development and enhancing national security capabilities. "Chen Zhihua, a member of the National Committee of the Chinese People's Political Consultative Conference and Secretary of the Party Committee and Chairman of Qilin Software Co., Ltd., mentioned it during this year's two sessions.

　　Under the guidance and support of national policies, more and more enterprises are beginning to invest in the research and development of on-board basic software.

　　Since its establishment, the "National Team" Puhua Basic Software has been deeply involved in the field of basic software, and in 2010, it released the first domestic automotive basic software platform.

　　Jingwei Hengrun has been collaborating with international basic software giant VECTOR since 2008, and twelve years later, it successfully brought its independently developed AUTOSAR solution - INTEWORK-EAS.

　　Established in 2015, Neusoft Ruichi held a good hand shortly after birth and became a second-level member of AUTOSAR in 2017. It was the only Chinese enterprise among AUTOSAR's development partners at that time.

　　In addition, companies such as Zhongke Chuangda, Huawei, Zebra Zhixing, Huayu Tongsoft, and Guoqi Zhikong have also invested in the field of basic software. Looking at the relevant enterprises that are currently laying out automotive basic software, Yiou Automobile will analyze the market status of automotive basic software from the perspectives of investment and financing.

　　2022, the year of the wind

　　Vehicle based software, starting in 2022.

　　According to incomplete statistics from Yiou Automobile, as of now, out of the 18 automotive basic software related enterprises in the market, 5 have been listed. Among the remaining 13 companies, 5 completed the latest round of financing in 2022. In 2022, automotive basic software related enterprises have attracted widespread attention in the capital market, and their industry has shown an overall upward trend.

　　The rapid development of intelligent electric vehicles is essential for winning the favor of the capital market in 2022 for onboard basic software.

　　According to data from Yiou Think Tank, the sales of intelligent electric vehicles in China reached 3.558 million in 2022, with a penetration rate of 51.7% for new energy vehicles. With further support from policies, technology, and the market, Yiou Think Tank predicts that the sales of smart electric vehicles will exceed 12.2 million in 2025, with a penetration rate of 80.1%.

　　The intelligent electrification of automobiles has further developed, and the electronic architecture of automobiles is also undergoing innovation. Cars are gradually transitioning from traditional mechanical drive to software drive, and the hardware system of cars will tend to be standardized. The differentiation of software systems becomes the key to the differentiation of car value.

　　Players who enter the game need competitive basic software solutions in order to capture a high share of the smart electric vehicle market and stand out among the competition. In other words, in the future competition of the automotive industry, the field of basic software is a battleground for strategists and a key link in determining success or failure.

　　At the same time, in the future large-scale application, the single vehicle cost of basic software is expected to further decrease. With the gradual enrichment of development functions in multiple scenarios, the usage of basic software on a single vehicle will increase. Stimulated by the overall increase in market sales, Yiou Think Tank predicts that the market size of automotive basic software will reach 14.25 billion yuan by 2025.

　　Smelling the opportunities and markets brought by basic software, capital naturally flocked like sharks smelling the smell of blood.

　　Weaving a large net and sailing into the blue ocean

　　Yiou Automobile believes that the overall development of vehicle based software enterprises is in the early stage. Out of 18 companies, a total of 7 are in the A-round financing stage, and 2 are in the B-round financing stage, mostly in the early stages of development.

　　It is worth mentioning that Chengmai Technology, Guangting Information, Desai Xiwei, Zhongke Chuangda, and Jingwei Hengrun have all gone public. Rather than saying that the current layout of car based software enterprises is like a pyramid shaped one with a wide bottom and a sharp top, it is more like a dumbbell shaped one with a small middle and large two ends.

　　Why does the field of automotive basic software still attract companies to venture into the world with high industry barriers, high costs, and high safety requirements, where Zhuyu is ahead? Perhaps we can explore the truth from the past and present lives of these enterprises.

　　For example, Neusoft Ruichi, which is in the A-round financing, was founded by Neusoft Group in 2015. It has been continuously cooperating with well-known enterprises in the industry, actively exploring market resources, and its main customers include mainstream joint ventures and Chinese independent brands. Neusoft Ruichi is striving to weave an ecological network in the field of automotive basic software.

　　In April 2022, Neusoft Ruichi teamed up with Xinchi Technology to promote the implementation of localized software and hardware solutions. In July of the same year, we reached a strategic cooperation with United Electronics to create a domestically produced automotive basic software solution. At this year's auto show, we signed a strategic cooperation agreement with Yixing Technology, which is also in the A-round of financing. The two sides will integrate the resources and advantages of automotive basic software to achieve mutual creation and win-win situation.

　　Coincidentally, Zebra Smart Travel was jointly created by Alibaba and SAIC in 2015, fully leveraging Alibaba Group's technological and ecological advantages in voice, vision, chips, LOT, cloud computing, maps, payment, e-commerce, and other fields, and collaborating with car companies to create smart travel solutions. At present, Zebra Zhixing has collaborated with more than 10 automotive brands and over 40 vehicle models from SAIC, FAW, North South Volkswagen and other automotive companies.

　　These automotive companies, which are still in the A-round financing stage, are mostly important pawns placed by industry giants in the automotive manufacturing industry. They rely on their unique innate advantages, while striving to create their own ecological cooperation circle, unite partners, and accumulate strength. Finally, they have the strength and confidence to compete with friends in the field of automotive basic software.

　　The prospects are broad and in the ascendant

　　The development of the automotive basic software field still relies on two factors: region and funding.

　　Among the 18 automotive basic software related enterprises, 14 are located in Beijing, Shanghai, and Guangzhou, and 2 are headquartered in Jiangsu, with one in Chongqing and one in Hubei.

　　The assistance provided by Beishang Guangneng to automotive basic software related enterprises is self-evident. Whether it is the degree of policy inclination, industrial agglomeration, talent and capital intensity, they can all help these enterprises achieve rapid development.

　　In addition to regional assistance, investment and financing funds have also become the foundation for the development of automotive basic software related enterprises. From the latest financing amount of 18 companies, 6 companies have obtained financing of around 100 million yuan. Among them, Jingwei Hengrun successfully landed in the A-share market in April 2022.

　　From the perspective of major investors, Yiou Automobile believes that there are two trends worth noting.

　　On the one hand, host manufacturers closely monitor the penetration of basic software and further improve the industrial ecological layout. Among the main investors in basic software related enterprises, there are many figures such as BAIC Investment, Honda, SAIC Group, and even less active Chinese companies such as FAW are starting to take advantage of the market, hoping to get a share of the automotive basic software.

　　On the other hand, as an emerging track, car based software has not been highly sought after by many VC investors. Due to the long return period and high investment and financing intensity required, the automotive basic software is still severely underestimated in the primary market.

　　Yiou Automobile believes that compared to foreign countries, China still has a long way to go in the development of basic software technology. With the further tilt of national policies and the acceleration of electric intelligence in automobiles, the Chinese automotive basic software market is bound to usher in vigorous and far-reaching development.