How are Chinese manufacturers leading the global automotive industry trend?

Japanese media: How have Chinese manufacturers become trendsetters in the global automotive industry?

For many years, Chinese automakers have been burdened with a negative image of being "copy machines." The Chinese automobile industry could only refer to advanced global automobile manufacturing technology, and often with little effect. To reduce production costs, they always compromised on manufacturing quality, and cars designed with hasty copying and cheap materials often looked very clumsy.

The arrival of the electric vehicle era changed everything. China has continuously invested in this field, and years of effort have finally paid off. According to the Japan Times, when Audi executives first saw the Zeekr 001, which combines excellent range and European aesthetics, in 2021, this high-end German car brand felt a sense of crisis. At that time, European auto executives had already realized that if they wanted to compete with Chinese manufacturers, they must start learning from Chinese technology.

To enhance its electric vehicle product line for Chinese consumers, Audi developed the E5 Sportback in just 18 months, with technology sourced from its Chinese partner SAIC Group, including batteries, electric powertrain, infotainment system software, and driver assistance systems. Renault and Ford have sought cooperation with Chinese manufacturers to develop their own models based on Chinese electric vehicle platforms.

The Japan Times pointed out that using ready-made Chinese electric vehicle platforms and software can save other car manufacturers billions of dollars and several years. Volkswagen plans to jointly develop vehicles for the Chinese market with Chinese manufacturer XPeng Motors, with XPeng Motors providing electronic and software solutions. Volkswagen hopes to understand whether XPeng Motors' electric vehicle technology can supplement or replace Volkswagen's own technology. If this strategy works in China, Volkswagen may be able to promote it to all markets.

However, the Japan Times pointed out that Chinese automakers have adopted Tesla's modular platform development approach. This method now gives them a competitive advantage, not only by making profits from selling their own models but also by licensing platform technology to third-party manufacturers. This is particularly beneficial for small brands, significantly lowering the entry barriers in the industry. However, some well-known manufacturers still have doubts. The Japan Times summarized that Andy Palmer, former CEO of Aston Martin, stated that while it can save R&D costs, carmakers should avoid over-relying on third-party technology, as this would limit the ability to build brand differentiation.

Original article: www.toutiao.com/article/1843332329039306/

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