In recent years, the automotive industry in China has undergone a significant transformation, with Chinese automotive suppliers emerging as leaders in electrification and intelligence. According to a report by the Chinese automotive think tank Gasgoo, this shift is a result of the rapid development of the domestic new energy vehicle (NEV) industry.
The report, released on March 29, highlights the competitive edge of Chinese automotive suppliers in various fields related to self-driving technologies such as light detection and ranging, high-definition maps, and air suspension. The data revealed that there were 3.7 million NEVs in the Chinese market equipped with Level-2 autonomous driving functions last year, achieving a market penetration rate of more than 51 percent.
Wang Xianbin, senior director at Gasgoo, stated that in the Chinese market segment for cars priced between CNY200,000 and CNY500,000 (USD27,000 and USD69,000), over 85 percent of them were equipped with L2 autonomous driving functions. Furthermore, he predicted that in the future, driving assistance systems would also be installed in most models priced below CNY100,000.
Gasgoo’s data also revealed that domestic companies dominated the Chinese lidar market, with Hesai Technology capturing the largest market share. Additionally, the penetration rate of intelligent cockpits in China was close to 60 percent last year, indicating a growing preference for smart vehicle features among Chinese consumers.
In the realm of smart vehicle technology, Chinese display companies like Boe Technology Group and smart home companies like Skyworth Group are actively participating in the competition of main control screen suppliers in the Chinese market, as highlighted by Zhang Zhiwen, Gasgoo’s deputy director. Moreover, China’s iFlytek emerged as the leading supplier of speech interaction functions, occupying nearly half of the Chinese market.
With regards to battery suppliers, FinDreams Powertrain and Contemporary Amperex Technology have maintained their positions as the leading Chinese battery suppliers, according to Wang Jian, a senior analyst at Gasgoo. However, there is an ongoing shift amongst Chinese NEV startups towards multi-supply of battery providers, indicating a diversification from reliance on a single supplier.
Looking ahead, there is an expectation that automakers will increase their investment in self-developed battery cells, further reshaping the landscape of the Chinese automotive industry. This transition is expected to bring about advancements in electrification and intelligence, firmly establishing the position of Chinese automotive suppliers as leaders in the global automotive market.