Longhorn Auto Co Ltd: A Surge in the Automotive Sector

On May 16, 2025, the automotive sector witnessed a significant surge, with Longhorn Auto Co Ltd, a prominent Chinese automobile manufacturer based in Shenzhen, Guangdong Province, being part of this upward trend. The company, listed on the Shenzhen Stock Exchange, saw its shares rise by 20% to a closing price of 62.3 CNY on May 13, 2025. This increase is part of a broader trend in the automotive sector, with companies like Wan’an Technology, Junsheng Electronics, and Mingke Jingji also experiencing substantial gains.

Market Dynamics and Industry Trends

The rise in Longhorn Auto Co Ltd’s stock price is reflective of the broader market dynamics, particularly the growing interest in intelligent connected vehicles. The China Intelligent Connected Vehicle ETF (159872) saw an increase of over 1%, driven by the positive outlook on the industry’s growth. According to IDC data, China’s intelligent connected vehicle shipments are expected to grow from 13.7 million units in 2021 to 24.9 million units by 2025, with an annual compound growth rate of 16.1%. This growth is supported by the Chinese government’s strategic emphasis on intelligent connected vehicles as a national strategic emerging industry, as outlined in the “Smart Car Innovation and Development Strategy.”

Technological and Policy Drivers

The industry is benefiting from technological advancements in 5G communication, artificial intelligence, and vehicle-road cooperation, which are expected to drive the “single vehicle intelligence + vehicle-road cooperation” dual-wheel driving model. This model covers critical segments of the industry chain, including chips, sensors, high-precision maps, and cloud platforms, positioning China as a global leader in intelligent connected technology innovation and commercialization.

Regulatory Developments

In addition to market and technological drivers, regulatory developments are also influencing the automotive sector. A new mandatory national standard for automatic emergency braking systems (AEBS) is set to be implemented, expanding its application from passenger vehicles (M1 class) to light commercial vehicles (N1 class). This regulation aims to enhance safety by requiring all passenger cars to be equipped with AEBS, marking a significant step towards widespread adoption in the Chinese market.

Conclusion

The automotive sector, with companies like Longhorn Auto Co Ltd at the forefront, is experiencing a period of robust growth, driven by technological advancements, supportive government policies, and regulatory developments. As the industry continues to evolve, Longhorn Auto Co Ltd and its peers are well-positioned to capitalize on the opportunities presented by the intelligent connected vehicle market.