China has become a leader in the automotive industry, particularly in the development of electric vehicles (EVs) and lithium-ion batteries. Companies such as CATL, BYD, and Gotion have achieved leading positions in power batteries, thanks to innovations and continuous R&D. China is also the world’s largest car market, with a thriving EV market that has overtaken traditional automakers like Tesla. German car manufacturers like BMW and Mercedes-Benz are collaborating with Chinese companies to leverage their expertise and cost advantages.
The future of the car industry is expected to be shaped by two key characteristics: zero-emissions vehicles and intelligent vehicles. The latter refers to automated driving and smart cockpits, which will enable drivers and passengers to engage in meaningful conversations while driving. Chinese companies like Baidu and Pony.ai are already making significant progress in autonomous driving, with Baidu’s “Apollo Robotaxi” being a notable example.
China’s large market and scaling opportunities are providing a foundation for a viable business model in the autonomous vehicle sector. The country is also developing its semiconductor industry, with companies like Huawei, Horizon Robotics, and Tencent showing promising results. China has become the market leader in LiDAR sensors, which are essential for capturing data and enabling autonomous vehicles to function.
The collaboration between German automakers and Chinese enterprises is expected to be a win-win relationship, with both parties benefiting from each other’s expertise and strengths. The European Union is also seen as a potential beneficiary of this collaboration, as it can help minimize political risks and promote independence from the US. The author argues that the car of the future and its masterminds will come from China, providing a good opportunity for the EU to engage in a win-win game.
Overall, China’s emergence as a leader in the automotive industry is driven by its innovative companies, large market, and scaling opportunities. The country’s focus on developing intelligent vehicles, semiconductors, and sensors is expected to shape the future of the car industry, with significant implications for the global market. The collaboration between Chinese and European companies is seen as a key factor in promoting mutual benefit and inclusive growth, and in minimizing political risks in the industry.