Industrial: Creating differentiated selling points + solving sun protection pain points, the trend of dimming automotive glass industry is accelerating.

The Industrial report states that the trend of dimming automotive glass industry is accelerating, with potential for future volume growth. Dimming skylights can effectively solve the sunshade and heat insulation problems of panoramic skylights in earlier stages, and the privacy function of side glass is enhanced, showing optimism for the industry trend towards volume growth. The increase in value of dimming automotive glass will drive up the ASP of individual car glass, increase the value of glass, open up new growth points for automotive glass business, and focuses on recommending Fuyao Glass Industry Group. Among dimming automotive glass products, the proportion of added value of dimming film is relatively high, with clear domestication trends in EC, PDLC, and LC. Currently, PDLC dimming film has made the most progress in domestication, with relatively low comprehensive costs. PDLC black film is an improved version of mature technology, and prices of models equipped with large-scale production are expected to decrease in the future, showing potential for volume growth. It is recommended to pay attention to Shanghai Hiuv New Materials Co., Ltd. Key points of the Industrial report are as follows: Preface: Currently, the market is concerned about the intensification of cost competition among major manufacturers, and the adoption rate of high value-added automotive glass, such as functional skylights, may be lower than expected. Leading car companies like BYD Company Limited are driving the acceleration of autonomous driving technology, with the penetration rate of intelligent features entering a period of rapid growth. In the medium to short term, autonomous driving technology remains a cost item, but it can effectively drive the consumption of intelligent features in car cabins and exteriors. In addition, in the context of increasing homogenization of vehicles, finding differentiated selling points has become an urgent need for major manufacturers. Dimming skylights dispel consumers' concerns about the lack of sun protection from skylights, effectively addressing the major pain points that consumers had with skylight glass previously. The report predicts an acceleration in the penetration rate of dimming skylights. Dimming automotive glass is gradually moving from high-end luxury to mainstream mass market, and dimming skylights are expected to become a popular trend. Dimming glass is expected to become a popular trend for new mainstream vehicles by 2025, mainly used in skylights, including popular models such as Zhiji L6, Wenjie M9, Zunjie S800, and Xiaomi YU7, all of which are incorporating dimming glass as a selling point for new vehicles. Currently, there are four mainstream technological pathways for dimming glass applications in cars, which are EC, PDLC, LC, and SPD, with EC and PDLC technologies being the most widely used among the four pathways. PDLC dimming film has made a breakthrough in domestication and innovation, with the black film solution effectively addressing the limitations of previous gray and white color adjustments, and receiving recognition from major manufacturers. With mature and controllable processes, suitability for curved surfaces, and lower supply chain costs, PDLC is expected to dominate the dimming skylight market in the future. Dimming film is a high value-added link in the production of dimming glass, and the long-term market space for dimming film in the Chinese passenger car segment is expected to reach billions. PDLC technology is highly favored. Market space: The upstream material technology barriers for dimming glass are high, dominated by international suppliers, with dimming film accounting for a high proportion of material costs. In 2025, the market space for domestic automotive dimming film is estimated at 21 billion yuan, with the long-term market space expected to reach 214 billion yuan, mainly used in skylights, rear side windows, and rear windshield, offering vast growth potential. Competitive landscape: Among the four types of dimming film, PDLC dimming film has a higher level of domestication, with the EC dimming film market dominated by foreign companies, as domestic manufacturers have achieved breakthroughs and caught up in technology; LC dye liquid crystal technology has been independently developed by BOE, but the core upstream materials still rely on imports; SPD dimming film is mostly monopolized by foreign companies, with domestication just starting. Risk warning: Decline in global automotive market sentiment; intensification of competition in the automotive glass industry; slower-than-expected progress in mainstream dimming film production; shortage of key raw materials and rising material costs.