In-Depth Analysis of the Substantive Impact of L3 Autonomous Driving License on Changan Automobile

On December 15, 2025, the Ministry of Industry and Information Technology (MIIT) officially announced China’s first batch of access permits for L3 conditional autonomous driving models, with Changan Deepal SL03 and BAIC ArcFox Alpha S successfully approved [1][2]. Only five days later, on December 20, 2025, Changan Automobile obtained China’s first special license plate for L3 autonomous driving, ‘Yu AD0001Z’, marking the official entry of China’s autonomous driving into a new stage of compliant commercialization [3][4]. This is not only a technological breakthrough, but also a crucial leap from "product access" to "road access", pressing the "accelerator button" for the development of intelligent connected vehicles nationwide [1].

According to the national standard "Classification of Automobile Driving Automation", L3 is classified as conditional autonomous driving, where the vehicle can be automatically driven by the system in specific scenarios, but the driver must intervene promptly when the system issues a takeover request [3]. The core difference between L2 and L3 lies in the role positioning and responsibility division between the system and the driver — L3 realizes the transfer of driving control right and accident liability subject from the driver to the system for the first time [2]. Professor Deng Zhidong from the Department of Computer Science at Tsinghua University pointed out that the popularization of L3 will become the ‘ChatGPT moment’ for China’s autonomous driving industry, which is expected to reshape the automotive industry chain and supply chain, and lay a solid foundation for the reasonable adaptation of consumer behavior, relevant laws and regulations, and insurance systems [1].

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Changan Deepal SL03 adopts a pure vision technical path and is equipped with the ‘Tianshu Intelligent’ driving assistance system, which stands in sharp contrast to the multi-lidar fusion solution of BAIC ArcFox Alpha S [1]. The biggest attraction of the pure vision solution lies in cost control and large-scale deployment — the hardware cost of cameras is much lower than that of lidars which cost tens of thousands of yuan, making it more conducive to the penetration of L3 functions into mid-to-low-end models [1]. This technical route reflects Changan Automobile’s balanced consideration between cost-effectiveness and technological innovation.

Changan Automobile’s L3 autonomous driving system adopts an advanced

to ensure safety under all circumstances, and can handle situations safely and reliably even if a single sensor or actuator system hardware fails [4]. The system also innovatively applies the micro-Doppler effect of 4D radar and is equipped with micro-collision sensors for the first time, enabling the system to not only recognize general obstacles such as cardboard boxes and traffic cones, but also improve adaptability in scenarios such as severe weather, sudden pedestrian intrusion, and sudden deceleration of the preceding vehicle [4].

Chongqing’s unique three-dimensional terrain provides a natural "crucible" for autonomous driving testing. It is often said in the industry: "Driving 10,000 kilometers in plain areas is not as good as driving 100 kilometers in Chongqing" [5]. The test scenario elements of Changan’s L3 autonomous driving system reach 185 categories (49% higher than the national standard), with an average of 1 complex scenario risk per 38.9 kilometers, and the proportion of extreme scenarios is as high as 36% [3]. Facing the complex space of the Huangjuewan Overpass with 5 floors and 20 ramps, the vehicle achieves centimeter-level precise positioning relying on the self-developed "super brain" and 34 sensors [5]. Liang Fenghua, head of artificial intelligence at Changan Automobile, said: "The system honed in the mountain city has particularly strong adaptability." [5].

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The approval of Changan Deepal SL03 in the first batch means that the company has received national-level recognition in product safety design, R&D capabilities and other aspects, marking that the company’s development in the field of autonomous driving has entered a "fast lane" [4]. As one of the first automakers in the country to obtain a special license plate for L3 autonomous driving, Changan Automobile has seized a first-mover advantage in the intelligent driving track, which helps enhance the brand’s technological image and market competitiveness.

Chen Lei, an engineer at Changan Automobile, stated that the company’s L3 autonomous driving system is expected to launch

, and will gradually open more functions to users in the future according to national policies, with plans to launch related products under brands such as Avatr, Changan Deepal, and Changan Qiyuan [4]. Currently approved L3 functions will first provide commercial travel services in specific scenarios such as airport shuttles and park commutes, accumulating experience and data for the large-scale operation of autonomous driving travel in the future [6].

After obtaining the L3 license, Changan Automobile has driven the collaborative development of 8 core supporting enterprises [5]. From the perspective of the supply chain, L3 autonomous driving involves the transfer of driving responsibility to the system, which significantly increases requirements for functional safety, data record traceability, human-machine co-driving, and fault degradation. The industry generally responds through hardware performance upgrades and safety redundancy design, which is expected to drive up the ASP (Average Selling Price) of links such as by-wire chassis, domain controllers, and sensors [2]. Specifically:

Industry Chain Segment	Beneficiary Areas	Related Targets
Active Suspension	Air springs, variable damping shock absorbers	Baolong Technologies, Tuopu Group
Electro-Mechanical Brake (EMB)	Brake system upgrade	Bethel, Zhejiang Asia-Pacific Auto Parts
Steer-by-Wire (SBW)	Steer-by-wire transformation of steering system	Nexteer
Sensors	Lidar, 4D millimeter-wave radar	Hesai Technology, Desay SV

According to Southwest Securities’ estimation,

, becoming another trillion-level track [4]. As one of the first "licensed" enterprises, Changan Automobile can build first-mover advantages in technical verification, operation data, and brand recognition on the eve of the market explosion, laying a foundation for subsequent large-scale commercialization.

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According to the latest market data [0], the stock price of Changan Automobile (000625.SZ) has fallen by 8.60% in the past year, with the current price at $11.69 and a market capitalization of approximately $96.69 billion. The price-earnings ratio (P/E) is 17.04 times, and the price-to-book ratio (P/B) is 1.50 times. From a technical indicator perspective, the 20-day moving average is $11.86, the 50-day moving average is $11.92, and the 200-day moving average is $12.44. The current stock price is about 1.9%-6% below the medium-term moving averages.

Notably, the Q3 2025 financial results show that the company’s EPS is $0.08, 61.20% lower than market expectations, while its revenue of $4.224 billion exceeded expectations by 5.61% [0]. This situation of "growing revenue but not profit" may be related to increased R&D investment, and the breakthrough in L3 autonomous driving technology is expected to become a new engine for future performance growth.

Dongguan Securities pointed out that after the policy is implemented, L3 access is not just about issuing licenses, but also means that regulators have formed a closed loop in core regulations such as product safety, cyber security, and accident liability determination. The long-standing compliance concerns of automakers have been eliminated, and high-level intelligent driving will shift from pure technical involution to legal-based commercial realization [2]. This institutional-level certainty provides a clear commercialization path for Changan Automobile’s intelligent driving business, which is expected to enhance the market’s valuation expectations for the company’s future growth.

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From the perspective of pilot requirements, the application scope of currently approved vehicles is still limited: the maximum speed does not exceed 80km/h, it is only applicable to specific road sections such as expressways and high-speed roads, and only supports single-lane autonomous driving with no automatic lane changing allowed [6]. MIIT clearly stated that current pilot entities can only use the vehicles on restricted road sections and for restricted models, and the vehicles are not available to ordinary consumers, but can only be operated by pilot user units [6]. This means that it will still take time for L3 functions to directly enter the personal consumer market.

Although the pure vision solution has cost advantages, it also means high risks — the system needs to achieve accurate 3D perception relying solely on 2D images, and its reliability is under greater pressure in extreme weather [1]. In contrast, the multi-lidar solution has stronger perception capabilities in specific scenarios, which can substantially improve safety redundancy. The competitive trend of the two technical routes will have an impact on Changan Automobile’s technical strategy.

Except for a few pure vision players such as Tesla and Xpeng, mainstream solution providers generally adopt lidar combination solutions for urban NOA and models with pre-installed L3 hardware [1]. Meanwhile, many automakers such as BYD, Seres (Aito), NIO, and GAC have also obtained or are applying for qualifications related to L3 autonomous driving [2]. Industry competition is becoming increasingly fierce, and Changan Automobile needs to continuously maintain a balance between technological iteration and cost control.

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According to industry forecasts, 2026 will become a key node for the mass production and implementation of L3 autonomous driving in China [4][6]. Huatai Securities’ research report believes that with the accumulation of pilot experience and the gradual improvement of regulations, L3 autonomous driving functions are expected to expand from local demonstrations to wider liberalization [4]. Changan Automobile plans to launch B-side pilot operations in Q1 2026 and gradually open to C-end users in the future, and this timetable is basically in line with the overall industry rhythm.

Changan Automobile clearly stated that it will launch L3-level products under multiple brands such as Avatr, Changan Deepal, and Changan Qiyuan. This multi-brand layout helps quickly deploy high-end technologies to markets at different price segments, maximizing technology spillover effects. In particular, the Deepal brand already has a certain market foundation and user recognition, making it an ideal carrier for the promotion of L3 technology [7].

As Changan Automobile’s home base, Chongqing has formed a full-chain ecosystem of "complete vehicle — system — travel" [5]. The Western Science City has built the country’s first cloud control basic platform that can empower all types of vehicles, and roadside high-precision sensors and RSUs (Roadside Units) act as the "eyes of the sky" for vehicles, broadcasting blind spot information in advance [5]. This collaborative development model of "vehicle-road-cloud integration" will provide complete infrastructure support for Changan Automobile’s L3 autonomous driving.

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The acquisition of the L3 autonomous driving license has

on Changan Automobile:

1. Great Strategic Significance
   : Obtaining the first special L3 license plate has established Changan Automobile’s first-mover position in the commercialization of autonomous driving, serving as an important endorsement of the brand’s technological strength.

2. Clear Commercialization Path
   : B-side pilots will be launched in Q1 2026, and the multi-brand product line expansion plan is clear, providing an predictable growth path for the company’s intelligent driving business.

3. Benefits from Industry Chain Collaboration
   : The technical characteristics of the seven-layer redundancy architecture and pure vision solution drive demand for supply chain hardware upgrades, creating incremental opportunities for core suppliers.

4. Potential for Valuation Enhancement
   : The trillion-level market space combined with institutional certainty is expected to enhance the market’s growth expectations for the company’s intelligent driving business.

5. Coexisting Challenges
   : Competition in technical routes, constraints on large-scale application, and intensified industry competition are risk factors that require continuous attention.

Overall, the acquisition of the L3 autonomous driving license marks Changan Automobile’s role transformation from a "follower" to a "leader" in the field of intelligent driving, winning a valuable strategic window for the company amid the wave of intelligent transformation in the automotive industry. With the advancement of commercial pilots in 2026 and the gradual launch of multi-brand products, Changan Automobile is expected to occupy a favorable competitive position in the L3 autonomous driving market and share the trillion-level market dividends.

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[1] Securities Times - "First Batch of L3 Models ‘Compliant on Roads’: Can China’s Autonomous Driving Welcome Its ‘ChatGPT Moment’" (https://www.stcn.com/article/detail/3559473.html)

[2] CLS - "Accelerated Commercialization of L3 Autonomous Driving: Xiaomi Auto Obtains Road Test License, Institutions Emphasize Hardware Increment Logic" (https://m.cls.cn/detail/2235010)

[3] Xinhua Net - "L3 Road Pilot: How Can Autonomous Driving Really Take Off?" (https://app.xinhuanet.com/news/article.html?articleId=071cd962ca6812d55a0910c1776ceb9f)

[4] Sina Finance - "L3 Autonomous Driving Industry: Moving from Testing Phase to Commercial Application" (https://finance.sina.com.cn/jjxw/2026-01-08/doc-inhfpfxi7233319.shtml)

[5] People’s Daily Online Chongqing Channel - "Chongqing’s 8D Road Conditions Temper the ‘Super Brain’ of Intelligent Driving" (http://cq.people.com.cn/n2/2026/0109/c365402-41467462.html)

[6] National Business Daily - "A Leap from ‘Assisted’ to ‘Autonomous’! First Batch of L3 Autonomous Driving Models Approved" (https://www.nbd.com.cn/articles/2025-12-18/4185872.html)

[7] Deepal Official Website - "News Center" (https://deepal.com.cn/news)

[8] Economic Information Daily - "Accelerated Commercialization of L3 Autonomous Driving: Industry Chain Positioning and Layout" (http://jjckb.xinhuanet.com/20260105/ec28e8fa088a43c59b63bc1864b42dc6/c.html)

[9] China Daily - "Analysis of Industry Impacts and Enterprise Development Strategies for the Commercial Implementation of L3 Autonomous Driving" (https://column.chinadaily.com.cn/a/202601/09/WS696067a3a310942cc499aa4e.html)