Interview with Dr. Yu Kai, Founder and CEO of Horizon Robotics

Dr. Yu Kai, Founder and CEO of Horizon Robotics, has been on the front lines of innovation for autonomous driving for most of the last decade. Dr. Yu, who once worked at NEC’s Silicon Valley laboratory and later started Baidu’s Institute of Deep Learning, established Horizon in 2015. Today, Dr. Yu’s integrated software and hardware solutions can be found in more than 50 mass-produced car models and is used in partnerships with 20+ domestic automakers and 100+ industry partners. Horizon’s network of cooperation includes such well-known automakers as Volkswagen, SAIC, Li Auto, BYD, GWM, Chery and NIO.

Dr. Yu, who maintains unmitigated enthusiasm for the world of automotive technology, also recognizes its limits. “We believe that the goal of technology is not to give power to machines, but to enable human greatness,” he said. Yu sat down recently to discuss the latest automotive trends in automated driving and Horizon’s participation at IAA Mobility.

IAA Mobility is a critical event on the automotive industry calendar. What’s Horizon’s message this week at the Munich Auto Show this week?

We are truly happy to be here. IAA Mobility is the first international auto show that Horizon is joining in the post-Covid world. Over the last few years, the automotive industry has undergone unparalleled changes – from the rapid development of electrification to advances in automated driving – all of which will be on display at the auto show. That’s why we’re attending. Horizon is showcasing our latest products and solutions. We’ll be exhibiting our Horizon Journey™ series computing solutions and our assisted driving solutions, like ADAS, and highway and urban NOA. We'll also demonstrate multiple use cases which are jointly developed with our domestic and international industry partners.

We’re also looking for opportunities to extend our partnerships with international automakers and Tier-1 manufacturers, to support their next-generation technologies and, more broadly, promote the development of automated driving in China. Horizon collaborates with a wide variety of component manufacturers and software developers. That includes sensor makers, such as camera, lidar and radar manufacturers, and global OEMs and automakers.

All of this allows us to discuss the direction of the industry, as a community, and better help automobile customers. This will eventually help provide a safer, more convenient and more comfortable driving experience to consumers.

China has emerged as the world’s most dynamic and progressive market for advanced smart driving solutions. What is Horizon’s strategy for capitalizing on China’s ecosystem to bring its products and technology to international automakers, including those in Europe and the United States?

The China market is massive, vital, and dynamic. Customers in China are open-minded and their appetite for new technologies is unparalleled. The China Passenger Car Association (CPCA) put the sales volume of NEVs in the Chinese market at more than 4.3 million in the first seven months of 2023. NEV market penetration now stands at about 29%, and nearly 40% of all NEVs sold are equipped with L2 assisted driving functions.

Horizon has chosen to operate an open and flexible business model. We’re partnering with Chinese automakers like Li Auto, NIO, BYD and Chery. At the same time, we’re looking to support more international automakers, who are now competing to accelerate their customization of automated driving solutions for the Chinese market. Our collaboration with Volkswagen Group is the best example of what we’re doing with international OEM automakers. As we announced, Horizon and VW's software company Cariad are establishing a joint venture to develop full stack ADAS/AD solutions. Besides our direct cooperation with international automakers, we've also established partnerships with global Tier-1 companies, like Continental, ZF and Aptiv.

So, we expect our open ecosystem, strong local-supporting capabilities, energy-efficient computing solutions, and user-friendly software development tools will create more opportunities to work closely with global OEM carmakers, particularly those looking to build and sell in the Chinese market. Our local DNA positions us to collaborate and support OEM automakers succeed in China.

Let’s talk about your relationship with Volkswagen Group. In 2022, VW made a 2.4-billion-euro deal with Horizon to develop driving-assist functions for VW’s electric vehicles. It was VW’s biggest investment in China to date. How is Horizon’s partnership with VW progressing?

As announced, we’re working to establish a joint venture between Horizon and VW's software company Cariad, and hopefully we’ll have great news to share with everyone later this year. This VW partnership is a significant milestone for Horizon. We’re taking a big step, expanding our business ecosystem from domestic automakers to international companies. When you consider VW's strong economies of scale and high integration capabilities, alongside Horizon's advantages in software, algorithms, and computing solutions, we’re confident that together we will speed up the customization of automated driving solutions for VW in the Chinese market.

We also are exploring more opportunities for cooperation with other international automakers with the goal of creating value for all consumers in China. Part of that is committing to work with carmakers and industry partners to make the daily driving experience for drivers and passengers a lot safer, more convenient, and more comfortable. I think all companies in the automotive industry – whether in China or internationally - share this mission.

Horizon Robotics operates in a big ecosystem, partnering with Tier 1 automakers, original design manufacturers, sensor suppliers, along with a multitude of upstream and downstream suppliers to develop consumer vehicle ADAS and AD. What is your view on new partnerships and what is your trajectory for growth?

No single company can do everything. Horizon’s business model is to create an open and flexible innovation ecosystem. That means we stay open to partnering and focus on what we really do well. In today’s automotive industry, it doesn’t make sense to try to make a black box.

Horizon now collaborates with more than 100 partners, including software vendors, hardware component vendors, sensor makers producing cameras, radars, etc. and over 20 domestic and international automakers. We work together and share our insights, even our challenges, as a community. China’s speed and inclusiveness has made it the world's biggest laboratory for development of smart vehicles, and we intend to keep an open and flexible business model in the future.

You have asserted that Level 3 automated driving will not be achieved within the next decade. How does Horizon see the development of self-driving?

Back in 2013, when I was working at Baidu, I opposed the term "unmanned driving" because it’s misleading to the public. I think it will be assisted driving for a long time. First, there’s the safety issue; the second is convenience.

We see that in the Chinese market the smart vehicle industry is shifting towards practicality, with consumer experience – or end-user experience – really driving sales and the direction of technology. The primary demand of consumers is not to fully replace human drivers with autonomous technology, but rather to enhance the driving experience and make it safer and more convenient.

For example, in cities such as Beijing and Shanghai, highway NOA (Navigate on Autopilot) can be a big help to effectively reduce driver fatigue, as most daily commutes are on highways or urban expressways. Urban NOA, which is Level 2++, is still technically challenging. From now until 2025, the focus of automotive manufacturers will need to be developing a smooth self-driving experience on highways and expressways - at an affordable cost.

The relationship between consumers and self-driving cars, I think, resembles the relationship between people and horses. Although horses are capable of "self-driving", they are still controlled by their riders. Similarly, even as cars become smarter and smarter, human drivers will still want to take control. That’s in line with our company philosophy. We believe that the goal of technology is not to give power to machines, but to enable human greatness.

What new developments excite you about the direction of smart driving? What are the important solutions Horizon is preparing to introduce?

The experience of driving a car with automated driving functions is what impresses me most and I think is key for the industry. This year, I had several chances to drive Li Auto's L8 Pro, which is equipped with Horizon's latest Journey 5 computing solutions. There have been several times I was driving on the highway for more than an hour, using the NOA function, and I didn’t feel as tired as I used to.

To date, over 50 mass-produced car models, including some best-selling cars in China – such as Li Auto's L7, L8, L9 Pro, NETA S and GT, Chery Tiggo 8 Pro, and ROEWE RX5 - feature Horizon's Journey series computing solutions. Horizon has accompanied Chinese drivers on billions of road kilometers.

Implementation of assisted driving is still low, so popular knowledge and experience with assisted driving is limited. I think awareness will improve over time as more and more people experience what it’s like to drive with less stress and fatigue.