Chinese automakers were able to lure consumers with low prices, design and technical characteristics at previous stages of development of the local market, and this year, according to UBS experts, active driver assistance functions will come to the fore in the fight for customers’ wallets.
Image source: Baidu
Advanced autopilot systems will become increasingly available to Chinese car buyers as the country has established a full-fledged ecosystem for their active development. There are both suppliers of the necessary equipment and software developers for vehicles, and the authorities are actively investing in the development of the digital infrastructure of cities.
Even for a global market, UBS analysts say China could become a major research and development center. Local companies offer not only the cheapest electric vehicles, but also affordable traction batteries, as well as autopilot components and all the necessary software. The Volkswagen concern, for example, has already decided to cooperate with the Chinese XPeng in developing new generations of its electric vehicles.
In China, the transition to electric traction has already become irreversible, according to UBS representatives, since in July last year more than half of the passenger cars sold in the country on the primary market had an electric traction motor in one or another combination. The government has resumed payments of $2,728 for those Chinese citizens who want to switch to an electric car.
Intense competition is forcing Chinese automakers to look for new niches in which they can perform better than their rivals. Autopilot technologies could be one of them. So far, of the approximately 50 manufacturers of electric vehicles and hybrids in China, only three can boast of breaking even. In addition to China’s market-leading BYD, there is startup Li Auto (Lixiang) and Huawei-backed automaker Seres (Aito).