Open Source Securities: Relaxation of regulations helps implement wire-controlled mass production EMB/SBW is expected to accelerate popularity

The Zhitong Finance App learned that Open Source Securities released a research report stating that braking systems can be divided into control/energy supply/driving/braking devices, and the upgrade process is based on the electronic process of each structural component; line control is divided into EHB (electronic hydraulic) /EMB according to whether the power transmission system depends on the hydraulic system. After 25 years of loosening regulations, EMB may no longer be barrier-free for mass production/overseas production; models equipped with EMB can be expected to be released in batches from the end of this year to the beginning of next year. Looking at the market size and pattern, the domestic braking market is expected to be 50 billion in 2030, with an EMB of 16.4 billion; if overseas + Robotaxi is considered, the market size is expected to expand further; the pace of mass production by domestic manufacturers is close to that of overseas giants such as Bosch, and is expected to compete.

The main views of Open Source Securities are as follows:

Wire-controlled chassis pursues man-machine decoupling as the foundation for achieving L3/L4. Considering only the domestic wire-controlled chassis market size is expected to exceed 100 billion in 2030

Line-controlled driving/steering (both have a high threshold + narrowing of the gap between domestic and foreign investment+ low penetration → domestic suppliers may have great potential) and wire-controlled suspension (high ASP+ low penetration, technical difficulty is less relevant than steering/braking) are directions worth focusing on; the main changes in wire-controlled chassis this year are strong standards/strong standards for braking and steering have been prepared, and it is expected that mass production of electronic mechanical braking (EMB) and wire-controlled steering (SBW) will be achieved in 26 years;.

Line-controlled driving/steering is important for improving the driving experience and ensuring smart driving safety. It is possible to replicate lidar positioning in stages — not only required for high-end smart driving models, but also important safety components; the promotion of AEB/parking and other functions may also be promotional highlights for car companies, and the speed at which the price band is falling may exceed market expectations.

Regarding line control movement: Regulations allow EMB to officially launch vehicles in January '26

Braking systems can be divided into control/energy supply/transmission/braking devices. The upgrade process is an electronic process for each structural component; line control is divided into EHB (electrohydraulic) /EMB according to whether the power transmission system depends on the hydraulic system.

Regarding EHB: It can be subdivided into two categories: pump drive EHB and motor direct drive EHB. The latter is mainstream; the one-box in direct motor drive EHB has outstanding cost performance; for L3 and above, based on one-box implementation, an independent braking unit (RBU) is just required. The EMB actuator relies entirely on motors and does not require hydraulic pressure. Compared with EHB, there are many advantages (such as shortened braking time/lightweight components & flexible deployment/each wheel can be controlled independently and accurately), but it also has various boarding problems such as safety, redundancy, voltage, and heat dissipation, and the threshold is not low. After 25 years of loosening regulations, EMB may no longer be barrier-free for mass production/overseas production; models equipped with EMB can be expected to be released in batches from the end of this year to the beginning of next year.

Market size & pattern: The domestic braking market is expected to reach 50 billion dollars in 2030, with an EMB of 16.4 billion; if overseas + Robotaxi is considered, the market size is expected to expand further; the pace of mass production by domestic manufacturers is close to that of overseas giants such as Bosch, and it is expected that they will compete.

Regarding the shift to wire control: Regulatory certification is not detailed yet, but new policy catalysts may be expected during the year

EPS, which is already standard for passenger cars, can be divided into C/P/DP/R-EPS 4 categories according to the motor position; the range of assistance and accuracy vary, and is suitable for different vehicle weight/cost models.

The SBW steering wheel decouples the steering wheel, the motor changes from a booster mechanism to an independent actuator, and the steering system is completely taken over by an algorithm; SBW is the foundation of the L4/5 steering wheel.

According to Open Source Securities, the pain point of getting on the SBW is that the control algorithm is high, the road sense simulator is difficult to optimize/redundancy requirements, etc.; and SBW has not yet issued a national standard similar to the EMB boarding standard; however, new policy catalysts can be expected within the year; in terms of mass-produced models, the NIO ET9 has already been certified and launched, and overseas ZF will be equipped with Mercedes-Benz European models in '26. Experience that SBW is not just what you need for an L4/5; its improved operating experience and reduced turning radius brought about by freeing up cockpit space/flexible steering may all become selling points.

Market size & pattern: Domestic systems are expected to shift to the 50 billion market by 2030, SBW 21.5 billion; if Robotaxi+ overseas is considered, the market size is expected to expand further; in terms of pattern, domestic manufacturers represented by Nexte/ Zhejiang Shibao are expected to challenge Bosch/ZF's market position.

The future of chassis multi-domain integration

Open Source Securities said that looking at longer-term technological trends, the next generation of smart chassis will break the boundaries of traditional systems, such as achieving a high degree of integration of braking, driving, and steering through “corner modules”, and fundamentally solve problems such as slow handling and nod effects in early smart cars.

Aspect of the target

It is recommended to focus on: Tier 1 & upstream motors/screws, which are high quality leaders with the ability to platform the entire chassis, such as Nexteer (01316), Zhejiang Shibao (01057), Bethel (603596.SH), Tuopu Group (601689.SH), Wuzhou Xinchun (603667.SH), Beite Technology (), Sling (301550.SZ), Shuanglin (300100.SZ), etc. 603009.SH

Risk Alerts

Risk of regulations falling short of expectations; risk of worsening competition; risk of downstream automobile sales falling short of expectations; risk of technology maturity falling short of expectations.