"Intelligent is the new normal": China reshaping global auto value chain

Intelligent connected vehicles (ICVs) making splash at Auto China 2024 [Photo/China Economic Net] 

By Wang Kai

 "Green and intelligent devices have become the 'standard configuration' of Chinese cars", observed Shahid Baig, Director of an American advisory company while feasting his eyes with the technologies on display at Auto China 2024, an ongoing international auto exhibition held in Beijing through May 4th.

Remote control, automatic obstacle avoidance, navigating on autopilot (NOA) in cities, cockpits that allows for entertainment and work, and 800V high voltage chargers... the once hard-to-reach high-tech elements become commonplace at the auto show. “When autonomous driving technology matures, cars will no longer be merely a means of transportation, but a mobile living space, which can be transformed into an office, a living room, a bedroom, and an entertainment space according to the needs of users”, said Wangdu, Assistant to the President of China Automobile Dealers Association.

International buyers discussing and selecting vehicles at Auto China 2024 [Photo/China Economic Net]

At the matchmaking conference for overseas auto parts buyers, Pakistani auto parts trader Alam Imad, told CEN, “Drastic changes have happened during the past several years in the automobile industry. The auto industry is being reshaped with Chinese tech companies coming in. There will be even more diverse players pursuing different strategies for different domestic segments and globally, it is less of the Chinese car and more of the Chinese brand”.

As per a study by Qianzhan, smart NEVs are projected to account for over 40% of the Chinese market by 2025 and become mainstream by 2030. The research institute classifies intelligent connected vehicles (ICVs), which employ on-board sensors, controllers, actuators, communication devices, etc., to achieve environmental awareness, intelligent decision-making or automatic control, collaborative control, and information interaction, as an “emerging strategic industry” in China.

While conventional carmakers are transforming their portfolio to electric, and startups are racing to gain a competitive edge, a new force is emerging in China’s intelligent automobile sector: technology companies are rising, relying on their inherent competence in digital technologies and drawing the interest of veteran auto manufacturers globally.

At the auto exhibition, the first intelligent vehicle model jointly made by Huawei and Beijing Automotive debuted along with 11 new smart car models. Toyota announced a strategic partnership with Chinese internet giant Tencent, utilizing the latter’s AI large model, cloud, digital ecology and other advantages in its Software Defined Vehicle (SDV) and other rich mobile travel integration, to create a more personalized, diversified mobile travel experience. Nissan, Hyundai Motor, and Kia signed agreements with leading AI company Baidu, to join hands in applying generative AI and cloud technologies in smart vehicles. XPeng, an EV company based in Guangdong Province of China, has been providing its Advanced Driving Aiding System (ADAS) to Volkswagen.

Chinese automakers are transitioning from exporting products to exporting technologies, according to Lin Hongchang, researcher of New Energy Collaborative Innovation Center, Zhejiang University.

“The combination of vintage auto brands with cutting-edge Chinese technologies offers consumers with novel experience“, an auto dealer from Sweden told CEN.

“As everything is getting connected, a top-of-mind question would be the accommodation of legal systems in different countries. I hope we benefit from having an innovative ecosystem and the knowledge of taking real functioning IoT solutions and networks to consumers”, he said.