Automakers worldwide are employing advanced technology to compete in China, the world’s largest electric vehicle (EV) market, which accounted for 59% of global EV sales in 2022, with 5.9 million units sold. Domestic brands hold an 81% share of the Chinese EV market, with BYD, Wuling, Chery, Changan, and GAC among the top players.
Research firm Canalys attributes the success of domestic brands to their early entry into the electric and intelligent vehicle sector, allowing them to lead in the development and implementation of advanced assisted driving systems. China’s EV market is projected to maintain its global dominance, reaching a 40%-45% market share by 2025.
Global automakers are now intensifying their efforts to compete in this booming market. BMW China, for instance, announced its plans to accelerate the development of Level 3 autonomous driving features, aiming to roll them out by the end of 2023 or early 2024, while ensuring compliance with local regulations.
Volkswagen Group has invested approximately $700 million in Xpeng, securing a 4.99% stake in the company. The partnership between Volkswagen and Xpeng aims to co-develop two new EVs with advanced driver-assist software tailored for the Chinese market, set for release in 2026.
BYD is collaborating with Nvidia and Horizon Robotics to develop autonomous driving technology, while Chinese automaker Leapmotor introduced a new platform to be licensed to other automakers for producing intelligent EVs. Japanese automaker Toyota is also ramping up its development of EV technology to compete effectively in the fast-growing Chinese market.
As the Chinese market continues its rapid expansion, automakers are aligning their strategies to meet the unique demands and preferences of Chinese consumers, emphasizing local development and innovation to provide competitive and satisfying products at a swift pace. The competition for a share in this lucrative market is fierce, prompting global players to invest in cutting-edge technology and partnerships with local entities to secure their positions in China’s ever-evolving EV landscape.