An XPeng Inc. G9 electric vehicle on the Shanghai Auto Show in Shanghai, China, on Monday, April 24, 2023.
Qilai Shen | Bloomberg | Getty Images
Global electric vehicle makers are tapping advanced technology to vie with one another and domestic brands in the intensively competitive Chinese market.
China is the world’s largest EV market with 5.9 million units sold in 2022, capturing 59% of EVs sold globally, according to Canalys. Counterpoint Research data showed that domestic brands command 81% of the EV market, with BYD, Wuling, Chery, Changan and GAC among the many top players.
“China’s domestic brands are leading the market in the event and implementation of advanced assisted driving systems, capitalizing on their early-entry benefits in the electrical and intelligent vehicle sector,” research firm Canalys said in a recent report.
“These brands have an edge over other joint ventures in the planning and execution of smart assisted driving systems.”
BofA Securities in a May report said it expects China to still be the world’s largest EV market in 2025, standing at 40%-45% market share.
“China auto makers are accelerating vehicle platform, technology upgrade or innovation, leading to outstanding user experience. China EV products are far more competitive than before, and China will proceed to see EV penetration expanding, in our view,” said the BofA Securities analysts.
But these global players at the moment are stepping up their efforts.
On Friday, BMW China announced that it’s accelerating the event of hands-free autonomous driving features, also often known as Level 3 or L3 functions. BMW China said it plans to roll those out by end of 2023 or early 2024 and can ensure compliance with local regulations.
L3 autonomous driving has not been widely approved in China, though some firms including domestic EV maker Xpeng has been authorized to test the technology.
The Chinese market is growing at an unprecedented pace. Toyota may also work together as a bunch to reform how we work & think to survive in China.
Tatsuro Ueda
CEO of the China Region, Toyota
Last week, Germany’s Volkswagen Group said it’s investing roughly $700 million in Xpeng and taking a 4.99% stake in the corporate.
“We at the moment are accelerating the expansion of our local electric portfolio and at the identical time preparing for the following innovation step,” Ralf Brandstätter, Volkswagen AG board member for China, said in an organization statement.
Volkswagen and Xpeng will co-develop two latest EVs that may incorporate its advanced driver-assist software for the Chinese market and goals to roll them out in 2026.
Intense competition
For instance, BYD is partnering with Nvidia and Horizon Robotics to develop autonomous driving technology. On Monday, Chinese automaker Leapmotor told reporters it developed a latest platform and goals to license it to other automakers to make intelligent EVs. On the identical day, Japanese automaker Toyota said it is going to 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 may also work together as a bunch to reform how we work & think to survive in China,” Tatsuro Ueda, CEO of China for Toyota, said in an organization statement.
“By promoting local development … we’ll attempt to develop and supply competitive products that may satisfy Chinese customers at a quick pace.”