According to the medium and long term forecast of the total sales volume of the Chinese automobile market released by China Association of Automobile Manufacturers and China Automotive Strategic Development Research Center of Tianjin University, from the perspective of the overall market, combined with our judgment of the Chinese vehicle market this year, we estimate that the annual domestic passenger car sales volume in 2022 will be about 25 million. Then, considering the steady growth rate of about 3%, the corresponding sales volume of passenger vehicles in 2023-2025 will be 25.75 million, 26.52 million and 27.32 million respectively. Intelligent car high-speed wiring harness (high-speed connector) : Car high-speed connector is mainly used in camera, sensor, antenna, GPS, Bluetooth, WiFi, navigation and auxiliary driving system, according to the different configuration, intelligent car configuration of automotive wiring harness of various high-speed connector ASP in 500-1000 yuan, The wiring harness of L1 level automatic driving system basically does not need extra high-speed cables, so the unit price is low.

In addition, the price level of wiring harness is mainly restricted by the influence of price changes of downstream vehicle manufacturers. Generally, with the emergence of new models, the price of cars is higher, so is the price of wiring harness. But over time, the emergence of alternative models will force the original models to drop in price, and Oems will demand lower prices from suppliers of parts such as wiring harnesses to maintain margins. However, parts manufacturers with large scale and high market position will maintain their profit level by means of automatic production, scale effect, integrated production and technological iteration, and thus the price of wiring harnesses will gradually decrease. Therefore, based on the overall expectation of the passenger car market, the penetration rate of autonomous driving technology at the corresponding level, and the ASP of high-speed wiring harnesses required at each level, we roughly estimate that the market size of high-speed wiring harnesses from 2022 to 2025 will be 85.9, 97.0, 10.85 and 12.28 billion yuan respectively. The compound annual growth rate is about 12.7%.