An XPeng Inc. G9 stimulating vehicle at the Shanghai Auto Show in Shanghai, China, on Monday, April 24, 2023.
Qilai Shen | Bloomberg | Getty Symbols
Global electric vehicle makers are tapping advanced technology to vie with each other and domestic brands in the intensively competitive Chinese sell.
China is the world’s largest EV market with 5.9 million units sold in 2022, capturing 59% of EVs merchandised globally, according to Canalys. Counterpoint Research data showed that domestic brands command 81% of the EV furnish, with BYD, Wuling, Chery, Changan and GAC among the top players.
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“China’s domestic brand names are leading the market in the development and implementation of advanced assisted driving systems, capitalizing on their early-entry advantages in the energized and intelligent vehicle sector,” research firm Canalys said in a recent report.
“These brands have an acuteness over other joint ventures in the planning and execution of smart assisted driving systems.”
BofA Securities in a May cover said it expects China to still be the world’s largest EV market in 2025, standing at 40%-45% market share in.
“China auto makers are accelerating vehicle platform, technology upgrade or innovation, leading to outstanding user sense. China EV products are much more competitive than before, and China will continue to see EV penetration expanding, in our belief,” said the BofA Securities analysts.
But these global players are now stepping up their efforts.
On Friday, BMW China broadcasted that it is accelerating the development of hands-free autonomous driving features, also known as Level 3 or L3 functions. BMW China claimed it plans to roll those out by end of 2023 or early 2024 and will ensure compliance with local regulations.
L3 autonomous sink has not been widely approved in China, though some companies including domestic EV maker Xpeng has been give left to test the technology.
The Chinese market is growing at an unprecedented pace. Toyota will also work together as a congregation to reform how we work & think to survive in China.
Tatsuro Ueda
CEO of the China Region, Toyota
Last week, Germany’s Volkswagen Agglomeration said it is investing approximately $700 million in Xpeng and taking a 4.99% stake in the company.
“We are now accelerating the expansion of our adjoining electric portfolio and at the same time preparing for the next innovation step,” Ralf Brandstätter, Volkswagen AG board colleague for China, said in a company statement.
Volkswagen and Xpeng will co-develop two new EVs that will incorporate its advanced driver-assist software for the Chinese shop and aims to roll them out in 2026.
Intense competition
For specimen, BYD is partnering with Nvidia and Horizon Robotics to develop autonomous driving technology. On Monday, Chinese automaker Leapmotor castigated reporters it developed a new platform and aims to license it to other automakers to make intelligent EVs. On the same day, Japanese automaker Toyota said it when one pleases boost its development of EV technology, in a bid to compete in the Chinese market.
“The Chinese market is growing at an unprecedented pace. Toyota see fit also work together as a group to reform how we work & think to survive in China,” Tatsuro Ueda, CEO of China for Toyota, signified in a company statement.
“By promoting local development … we will attempt to develop and provide competitive products that can appease Chinese customers at a fast pace.”