Future competition in China's automotive industry focuses on smart network connectivity

Deepening changes in the automotive industry

Currently, the automotive industry is undergoing a major change that has not been seen in a century. "Electrification is just the prologue of this automotive revolution. The current concerns of difficult charging and short range are gradually becoming a thing of the past." Chen Qingtai, chairman of the China Electric Vehicle Council of 100, said, "What will benefit residents and deeply change the economy and society is the electrification, greening, networking, intelligence and sharing of cars.

The ultimate goal is the synergistic integration of smart cars, smart energy, smart transportation and smart cities. This is the next step in the direction of efforts and the focus of the next competition."

As the automotive revolution moves deeper into the future, its attributes, definitions, cores and boundaries are all changing. The car is being transformed into an electronic and electrical product, an internet product, and a digital product of electronic and information high technology based on mechanical products.

"What drives the functional evolution of the car is data, and what guarantees data collection, processing and utilisation is software. In this sense, it is not an exaggeration to say that the car is a mobile intelligent terminal where 'data determines the experience and software defines the car'." Chen Qingtai said.

Chen Qingtai believes that in the era of software-defined cars, manufacturers and users will be transformed from a one-time sales relationship to a life-cycle partnership, forming a virtuous cycle of "users continue to provide data, manufacturers continue to expand services.

In other words, the business model of manufacturers is changing from "manufacturing" to "manufacturing + service", and the proportion of revenue from service will gradually grow.

"Electrification, networking and intelligence are the three main features of the future development of automobiles. To win this automotive revolution, we must pay extra attention to the construction of these three supply chains. The goal is to achieve autonomy and control under open conditions."

Chen Qingtai pointed out, "At the same time, the value chain is also changing rapidly. Software will be the basis of future automotive intelligence and the core of competitiveness."

At present, the technical barriers and system barriers of future auto parts have not yet been formed, some technical routes still have room to choose, and many new technologies are still under development, bringing historic opportunities for the development of Chinese parts enterprises, especially technology-based SMEs. "At present, China's window period towards auto power is still in, grasp well we have every possibility to become a winner." Chen Qingtai said.