A man takes a selfie with a Toyota Camry hybrid sedan at the 2024 AutoChina booth in Beijing recently.Cao Yingying/China Daily
Foreign automakers are increasingly partnering with Chinese tech companies to bring cutting-edge technologies such as artificial intelligence to their vehicles, targeting the tastes of tech-savvy customers in the world's largest auto market. ing.
Toyota, the world's largest automaker by sales, announced a partnership with Chinese IT company Tencent to develop advanced intelligent driving solutions at the 2024 Automobile Show, which ended on May 4. did.
Tencent, which operates WeChat, China's largest messaging app, will provide Toyota's software-defined cars with cutting-edge technologies such as AI and cloud computing. According to the agreement, Toyota will connect users' lifestyles with Toyota's mobility services to create a diverse mobile transportation ecosystem.
Similarly, Japanese automaker Nissan Motors signed a memorandum of understanding with Chinese tech company Baidu to collaborate on AI and smart car technology. This includes joint development and research, as well as the integration of Baidu's AI solutions into Nissan vehicles in China.
Nissan CEO Makoto Uchida said Nissan needs to respond to the needs of Chinese customers as quickly as the market changes. This partnership aims to provide smart systems and AI-based mobility services locally and globally.
“If we can't do that aspect, I think it will be very difficult to continue doing business in China,” he said.
Industry experts say the agreement recognizes that multinational companies need to incorporate similar technology into their models to keep pace with Chinese automakers, who are prioritizing electric vehicles and advanced technologies. It highlights the fact that there is.
German car giant Volkswagen has previously entered into joint ventures with Chinese AI chip provider Horizon Robotics and software group ThunderSoft, as well as Chinese EV startup Xpeng to co-develop high-end EVs for the domestic market. We have done a lot of things, including investing in.
“Four years ago, we thought it was almost certain that Chinese car companies would follow the global manufacturers' lead, but now everything seems to have changed,” said DJI Automotive, which was spun out from a global automaker. Spokesperson Xie Tiandi said. As cited by the Financial Times, the company is currently working with Volkswagen to develop driver assistance technology.
Industry experts say this is because China's vast consumer market and diverse driving conditions are conducive to the development of new energy vehicle technology, and the acceptance of intelligent technology is increasing among Chinese consumers. I think this is due to this.
Industry experts say more than 40% of the components in intelligent NEVs are a new category not found in traditional fuel vehicles, requiring an innovative supply chain that is well established in China.
As a result, the market landscape is changing as Chinese brands gain more ground than foreign brands. According to data from the China Passenger Car Association, retail sales in China's passenger car market reached 1.69 million units in March, an increase of 6% year-on-year. Sales of domestic brands rose 19% to 930,000 units, while sales of mainstream joint venture brands fell 8% to 500,000 units.
The market share of foreign brands continued to decline in the same month. The German brand held a market share of 20.4%, down 1.5 percentage points year-on-year. Japanese brands accounted for 13.8%, a decrease of 2.2 points. US brands accounted for 8.2%, down 1.8 percentage points.
Chinese brands have regained lost market share, with their market share increasing by 6 percentage points year-on-year to 54.8% in March.
BYD Chairman Wang Chuanfu predicts that the market share of joint venture brands will decline from 40% to 10% in the next three to five years, indicating the growth potential of Chinese brands.
Counterpoint Research predicts that by 2026, there will be 1 million cars in China equipped with Level 3 driver assistance technology (which allows drivers to take their hands off the steering wheel). These cars will account for about 10% of new cars by 2028.
Cars in 2024 In China, the rise of AI is shaping the trend, with Chinese car companies competing on digitalization and intelligence capabilities.
Xpeng has launched its Tianji smart cabin operating system, which can mimic users' driving habits and assist in various driving scenarios. Xpeng Chairman He Xiaopeng said, “Smart cars have become an important field of AI technology application.” He pointed out that AI not only improves user experience, but also reflects the rapid development of AI companies.
Baidu-Geely joint venture Jidu has introduced 01 and 07 models equipped with Ernie Bot, a large language model similar to Baidu's ChatGPT, enabling voice-controlled car functions and remote control of home appliances. .
Meanwhile, Huawei's Pangu large model, iFlytek's Spark large language model, and 360 Security's Zhinao model are beginning to be installed in vehicles.
