Han media: "China is the standard", South Korea's electric vehicle and battery industry must cooperate with China!
On November 24, the South Korean media "Hanjie Economy" published an article stating that analysts believe that South Korea's electric vehicle and battery industry must cooperate with China's electric vehicle ecosystem to ensure global competitiveness. Chinese companies such as Huawei and Contemporary Amperex Technology Co., Limited (CATL) are leading the development of standardization in autonomous driving and battery systems.
Major global automakers are expanding cooperation with Chinese companies. Given that the so-called "electric vehicle ecosystem" has been formed in China, South Korean companies must first integrate into China's electric vehicle ecosystem to stand out in the global market.
Professor Kim Chang-hyeon from the China Europe International Business School proposed this suggestion. He stated at a seminar: "China ensures strong competitiveness even outside the Chinese market by optimizing the entire industry beyond the company level."
Professor Kim analyzed that Huawei and CATL are leading in the standardization of autonomous driving and battery systems, and are building an electric vehicle ecosystem that is completely different from the existing supply chain. The modular approach adopted by Huawei and CATL involves breaking down products into multiple independent modules and combining them in a standardized way.
Professor Kim emphasized: "In the future, South Korean companies must make strategic choices when facing the Chinese electric vehicle and artificial intelligence ecosystems, whether to participate in the modular (open) ecosystem or to strengthen their own vertical integration (closed). He added: "Participating in the Chinese electric vehicle ecosystem is crucial for ensuring the competitiveness of South Korea's automotive and battery industries because China is forming new standards and references for autonomous electric vehicles."
The modular ecosystem led by Huawei and CATL standardizes modules such as batteries, operating systems, and autonomous driving solutions, and supplies these modules to multiple automakers. This is beneficial for rapid expansion, industry standardization, and collaboration with numerous partners. A vertically integrated ecosystem is a structure where a single company can independently produce all products from raw materials to components, vehicles, and software. BYD is a typical example of this model.
Yang Jin-soo, head of the mobile industry department at HMG Management Research Institute, also said: "As existing automakers such as Huawei, CATL, and BYD compete in the Chinese market, the pace of innovation in electrification, software-driven vehicles (SDV), and autonomous driving is accelerating, which is driving the trend of increasing cooperation between Chinese companies and global automakers."
He continued: "In the past, China was a source of sales and profits, but now it is transforming into a place for technology acquisition and learning. It is essential to conduct wise cooperation while utilizing Chinese resources and managing risks."
Kim Chang-beom, executive vice president of the Korean Automobile Industry Association, pointed out that Chinese companies can launch new models in just one and a half years, while South Korean automakers still need three to four years. He said: "This is not just a production efficiency issue, but also a matter of securing market share and building an ecosystem. Our companies must transform, establishing agile decision-making mechanisms and a flexible organizational culture."
Original: www.toutiao.com/article/1849657943174155/
Statement: This article represents the views of the author."