Yu Zhenghua: Level 4 autonomous driving is expected to be achieved in the short term, and AI-defined cars will shift from "selling hardware" to "selling space."

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Mars Finance News, June 23 — Motovis Smart CEO Yu Zhenghua stated at the 2026 Summer Davos that over the past decade, the automotive industry has evolved from distributed control to domain controllers and centralized computing electronic and electrical architectures, complemented by modular software and OTA capabilities, laying the physical foundation for AI-powered vehicles. He pointed out that the industry is shifting from "software-defined vehicles" to "AI-defined vehicles," and the maturity of the technological foundation makes Level 4 autonomous driving expected to be achieved in the short term, freeing drivers' time completely. He emphasized that AI not only changes driving but also reshapes the cabin experience. Seamless integration of large models will transform cars into spaces for living and working, triggering a major shift in business models. Automakers' profit logic will shift from one-time vehicle sales to subscription services based on software functions, ultimately moving toward shared models at the vehicle level. This reconstruction of the value chain from "selling hardware" to "selling space services" is happening rapidly.
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