Jul. 2 at 9:47 PM
$WRD One of the main factors defining the success of WeRide is whether ADAS systems will remain fragmented, with every major car manufacturer maintaining its own system, besides buying from here and there for trials and special purposes. Or, as with other car components, few providers will deliver the majorityty of the systems.
What will decide this?
- a specialized ADAS provider can offer a noticeable better system
- enough OEM's offer the system in volume models
- enough buyers like it so much that it becomes a main buyer criteria
At this point, a pulling mechanism starts and more manufacturers will need to offer the system simply to remain competitive. With the scaling effects, the system will be cheaper per copy to maintain. Pricing power of the ADAS provider rises. An oligopoly like situation with strong moats emerges.
Having WeRide in more models in China is a start. A major taping point might occur when a major non-Chinese OEM adapts it for some volume models
