Struggling foreign carmakers in China are seeking help from local tech giants to stay competitive in the world’s largest electric vehicle market, where smart displays, support software are in demand drivers and advanced mapping technology is growing.
At the recent Beijing Auto Show, China’s largest auto show, several foreign companies announced technology partnerships, such as Nissan’s cooperation with Baidu, Toyota’s signing of a cooperation agreement with Tencent, etc.
The two Japanese companies, Nissan and Toyota, are among the many legacy car giants that once dominated the Chinese market but are now struggling to keep up with a new generation of emerging local electric car companies.
Agence France-Presse quoted Tu Le, managing director of Sino Auto Insights, as saying, “They are a well-known conservation company, but their capabilities are not in the field of technology. They try to invest in key technologies in the automotive field, but this is not a natural development.”
He said, “Because of the direction the Chinese market is going and new entrants, companies like Xiaomi and Huawei who have a long history of developing high-tech consumer products are being forced to to be more open in the field of technology.”
Today, the companies are locked in a fierce price war with more than 100 Chinese electric car brands, all competing to offer the best prices and the most advanced technology to wealthy consumers.
Foreign companies have suffered as a result, said Gregor Sebastian, a senior analyst at independent research firm Rhodium Group and an expert on the electric vehicle industry.
He said, “In the last 12 to 18 months, foreign manufacturers in China, especially Japanese car makers, have suffered a major blow in the Chinese market. “
He explained that they “lost market share very quickly, not only due to strong competition in China from producers such as BYD, but also from many emerging electric vehicle companies.”
In recent years, BYD has become the undisputed champion of electric vehicles in China and beat the American company Tesla in global electric vehicle sales in the last quarter of 2023.
Where will the world’s electric vehicle revolution go? (Al Jazeera)
walled garden
Today, foreign manufacturers are forced to find ways to strengthen their position in a market that is increasingly dominated by a range of low-cost cars equipped with advanced technology.
Smart technology features are among a series of new requirements to gain an advantage in China’s electric vehicle race.
But in recent years, as geopolitical competition between the United States and China has intensified, Beijing has tightened restrictions on foreign companies’ access to information it deems sensitive, such as classified information. and the large amount of data that comes from cars that are made at home.
One of the main reasons foreign automakers are trying to partner with local tech companies is to benefit from their innovations, something China’s auto industry leaders are concerned about. strong competition in the sector, but another big factor is the availability of data.
Daniel Kolar, head of automotive and mobility at consultancy Intralink, said: “We have a walled garden situation here, where China wants to be seen as following the rules and letting foreign players go into the market, but in reality she doesn’t want that. give security issues” and the solution is to work with Chinese partners.
EV senior analyst and industry expert Gregor Sebastian said: “If you want to provide truly advanced mapping solutions in China, you need to work with local companies and then license their mapping data or work with them Form a joint venture.”
Are there different opinions about the use of electric vehicles in the United States? (Al Jazeera)
Focus on the future
Therefore, Nissan praised its agreement with Baidu for allowing it to “provide critical information systems and AI-based services to customers in China and abroad.”
Toyota said its deal with gaming giant Tencent on artificial intelligence will help tap into growing Chinese consumer demand for advanced smart features in the cars it sells in the country.
On the other hand, Baidu recently started working with South Korean car giant Hyundai and its subsidiary Kia.
Tu Le of Sino Auto Insights said that Chinese companies are particularly experienced in areas where foreign companies are lagging behind.
He continued, “Combined with the fact that most car makers are particularly weak in digital technology, this creates a great opportunity for Baidu and Tencent to move.”
During a surprise visit to Beijing last week, Tesla CEO Elon Musk met with senior Chinese officials and received important safety approvals for the company’s local electric vehicles.
The regulatory advance coincides with reports that Tesla has struck a mobile mapping and guidance (navigation) deal with Chinese tech giant Baidu.
Sebastian said the technology partnership is driven by a long-term strategy aimed at maintaining a leading position in the Chinese market.
He said, “We are talking about the next 15 years here, not the next two or three years. If the political relationship with China remains stable and does not deteriorate, (foreign companies) may start ) from Baidu or Tencent in the 2030s. . benefiting from the next generation of products.”
Tu Le said the potential of artificial intelligence in smart cars could be huge.
He continued: “Imagine an automated system in your car with access to your historical data as well as your trip and driving data, your shopping habits and preferences, which could be created to -every few minutes based on your habits and information Some ways to profit.”
2024-05-09 11:45:38
#Auto #giants #partners #China
