Top-tier classification hinges on three criteria: comprehensive functionality (highway NOA, urban NOA, all-scenario parking), stable, map-free operation with regular OTA updates, and robust hardware with sensor redundancy and sufficient computing power.

A clear, widely accepted standard for first echelon includes full functions, nationwide map-free operation, and strong, redundant hardware rather than mere component piling.

Real-world leadership requires map-free, end-to-end driving capable across the country with minimal human intervention; traditional L2 claims fall short of true first-echelon status, while L3 remains legally defined as driving assistance.

Tesla’s FSD V14.3 has been locally adapted for China and is expected to roll out via OTA in early to mid-2026 to compete with local driver-assistance rivals.

The industry is exploring world-model approaches versus end-to-end methods: NIO stresses world-model and closed-loop deep learning for long-horizon planning, while Huawei and XPeng push end-to-end large models for drivable performance without relying on high-precision maps.

The race among China's leading smart-driving players is centered on reaching first-echelon status in L2+ driving, with urban NOA as the defining differentiator and map-free capabilities as a crucial milestone.

Industry chatter is split on whether the path should skip L3, favoring a transition directly to higher autonomy, while others insist L3 remains an inevitable step in the evolution.

XPeng’s second-generation VLA enables direct conversion of visual signals into driving maneuvers, underscoring a continued emphasis on end-to-end in-house development for safer, more comfortable driving.

Huawei’s Qiankun Intelligent Driving ADS led the market in 2025 with about 28% urban NOA share and 745,000 installations, aided by full-stack development and map-free capabilities, with price reductions expanding access.

The current top group pattern shows Huawei leading the field, followed by players like XPeng and Li Auto, each leveraging in-house development and different hardware strategies.

Li Auto is prioritizing optimization for family trips, with Li AD Max delivering stable highway performance and easy NOA use on expressways with minimal interventions.

Huawei’s Qiankun ADS reached 1.4 million installed systems by end-2025, with efforts to lower hardware costs and expand urban NOA capabilities, including ADS 4.0 and cockpit integrations.