Intelligent auto sector speeding up

China is vrooming to shape the future of intelligent connected vehicles, with creation of a new industry road map underway, and is aiming for greater advancements in autonomous driving, high-end supply chains and global cooperation, according to government officials, company executives and industry experts.

Jin Zhuanglong, minister of industry and information technology, said the country will draft a comprehensive development plan for the intelligent connected vehicle, or ICV, industry, with the aim of harmonizing vehicle-road integration and enhancing software and hardware collaboration in the sector.

The term "intelligent connected vehicles" basically refers to "smarter" cars equipped with advanced technologies like artificial intelligence that enable them to communicate with other vehicles, the cloud and infrastructure like roads.

"Now, China has basically formed a comprehensive industrial system spanning chips, sensors, computing platforms, chassis control and vehicle-cloud connection for the ICV industry," Jin said at the 2024 World Intelligent Connected Vehicles Conference, which ended on Saturday in Beijing.

Jin also said that accelerated steps will be taken to formulate a regulatory system for high-level autonomous driving.

Another official of the Ministry of Industry and Information Technology said at the conference that China's self-driving cars are "nearing readiness for public roads", with a group of autonomous driving vehicles awaiting evaluation and permission for the final rollout.

The remarks came as President Xi Jinping said that science and technology should spearhead the advancement of Chinese modernization, during a recent inspection tour of East China's Anhui province, where he took a close look at high-tech products including intelligent connected vehicles at an exhibition of scientific and technological innovations.

Buoyed by such accelerated efforts in developing high-tech and intelligent connected vehicles, Lei Jun, founder of tech heavyweight Xiaomi Corp, said at the conference that the company is expected to meet its goal of delivering 100,000 Xiaomi SU7s — electric vehicles launched by the company as a venture into the ICV sector — by November, which is ahead of its year-end target.

Li Shufu, chairman of Chinese automaker Geely Holding Group, said that Chinese automakers are racing into a new stage of development with intelligence as their core competitiveness. Like many leading car companies, Geely has made progress in human-machine interaction, intelligent driving, chips and low-orbit satellites, he said.

Such confidence was also expressed by international players. Ralf Brandstaetter, chairman and CEO of Volkswagen Group China, said, "China is the future of the global automotive industry, and we are committed to being part of this journey in the era of intelligent connected vehicles."

In addition to building its largest development center outside Germany in Hefei, the capital of Anhui province, Volkswagen is strengthening cooperation with Chinese manufacturers like Xpeng and local high-tech companies such as Horizon Robotics, operating system provider Thundersoft and battery maker Gotion High-Tech Co, he said in a video speech to the conference on Thursday.

By 2027, the German automobile manufacturer will launch 40 new models in China across all brands, including more than 20 new energy vehicles, which clearly demonstrates its commitment to the Chinese market, he emphasized.

The latest data from the Ministry of Industry and Information Technology showed that China is home to nearly 400 "little giant "companies in the intelligent connected vehicle sector. The term "little giant companies" refers to small and medium-sized enterprises that typically specialize in niche sectors, command high market share and boast strong innovative capacity.

To support the rapid expansion of the sector, more than 50 cities across China have designated over 32,000 kilometers of test routes for ICVs and upgraded 10,000 kilometers of roads with smart technologies.

Despite China's momentum in the ICV industry, some company executives still see room for improvement. Yu Chengdong, executive director of Huawei Technologies Co, said that while the 5G smartphone penetration rate has reached over 85 percent in China, less than 10 percent of the nation's passenger vehicles use 5G.

"The integration of 5G into the ICV sector should be put into place, as it will generate economic growth and enhance the global competitiveness of the sector as a whole," he said.