Reference News Website reported on April 14 that the Financial Times website published a report titled "Driving Continuous Innovation in China's 'Cruel' Auto War" on April 6. The report is compiled as follows:

From cars equipped with drones on the roof to autonomous driving software and "5-minute charging," BYD's rapid electric vehicle innovation is creating one of the most competitive periods in the history of the automotive industry, as some analysts have described.

Trump's tariffs are expected to increase the cost of resources and electronic components in the U.S. and Europe, leading to slower sales of electric vehicles. However, it is predicted that sales of electric vehicles in China, the world's largest electric vehicle market, will grow by about 20% this year.

Data from HSBC shows that 78% of China's electric vehicle sales are shared among 10 companies, with BYD alone accounting for 27%. Analyst Yinqian Ding of HSBC said that this has led to approximately 52 brands competing for the remaining 22% of the Chinese market share.

In China, where a new model is launched on average every two days, keeping up with advanced technologies—such as auxiliary driving functions and the latest infotainment systems—has become key to survival as the market inevitably consolidates.

Yinqian Ding said the situation has become "binary," divided into companies with "intelligent electric vehicle" capabilities and those without. She also said that as the fuel car market continues to shrink, the industry is entering its "most brutal competitive period" in history.

Functions such as automatic lane changes and automatic parking are already very common in China. Local car manufacturers are increasingly developing more sophisticated and complex auxiliary driving software and are doing so earlier than many analysts predicted, thanks to the help of large language models based on artificial intelligence.

Ramon Zeng, an automobile technology expert at Bain Company in Shanghai, said that Chinese car companies are "doubling down" on adopting advanced auxiliary driving system software to target the high-end market once dominated by established foreign car companies.

He said: "All Chinese carmakers are striving to capture the high-end market. They exceed expectations in these features. This is their competitive advantage."

Tesla, which produces cars in Shanghai and was once credited with initially sparking enthusiasm for electric vehicles in China, is one of the foreign car companies losing market share, as consumers prefer newer models like those of its biggest competitor, BYD.

BYD sold 416,000 electric vehicles in the first quarter of this year, up 39% year-on-year, while Tesla delivered 337,000 vehicles worldwide during the same period, falling short of analysts' expectations.

Bill Russo, founder of Motus Consulting, who previously served as head of North Asia for Chrysler, said: "Keeping pace with the local market is a real challenge." (Compiled by Yang Xinpeng)

Original article: https://www.toutiao.com/article/7493031880179089929/

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