- Chinese electric car companies are rapidly rolling out new models, adding features such as in-vehicle projectors, refrigerators, and driver assistance.
- “China's electric cars will become household appliances” [product]. It's similar to the mobile phone industry,” said Li Yi, chairman and CEO of Apotronics, a Shenzhen-based laser display company that claims to work with major automakers. Told.
- He expects his new automotive division to generate revenue of “hundreds of millions of yuan” this year due to demand for car technology. This equates to between $40 million and $100 million.
BEIJING — Intense competition in China's electric vehicle market is forcing local automakers to sell vehicles with advanced technology that Tesla doesn't yet offer domestically, sometimes at lower prices. .
Companies no longer compete primarily on the driving range. Instead, it's rolling out new models at a rapid pace, adding features like in-vehicle projectors, refrigerators, and driver assistance.
Tesla cars don't come with these accessories, and Elon Musk's automaker currently only offers limited edition driver-assistance technology in China.
“China's electric cars will become household appliances” [product]. This is similar to the mobile phone industry,” said Li Yi, chairman and CEO of Apotronics, a Shenzhen-based laser display company that claims to partner with major automakers. Told.
“I think it's more interesting in China.”[ment]more gadgets, people want to buy something with really cutting-edge technical specifications,” he said, adding that in Europe people value functionality more.
Apotronics claims to have manufactured the 32-inch projection screen that spans the interior of Huawei's newly launched M9 SUV under its Aito brand. Huawei did not respond to requests for comment.
As of January 1, more than 30,000 M9s have been ordered, with deliveries expected to begin in late February, Ait said.
The six-seater car has a refrigerator, folding front seats, and technology that overlays information onto the road ahead, instead of a physical dashboard. This technology, known as AR HUD, can also display navigation instructions.
The price of the M9 SUV is approximately 470,000 to 570,000 yuan (66,320 to $80,430).
By comparison, Tesla's mid-sized SUV Model Y starts at 258,900 yuan, and Tesla's sedan Model S starts at 698,900 yuan.
Among other well-known competitors, Li Auto's L9 SUV starts at 429,900 yuan and comes with an AR HUD, refrigerator, and driver assistance technology.
Prices for Xpeng's G9 SUV, widely considered a leader in urban driving assistance technology in China, start at 289,900 yuan.
This is just a glimpse of the different cars and extra features available in China. According to HSBC, more than 100 new EV models will be launched in China in 2024.
Consumer interest in new car models is focused on in-vehicle technology and driver-assistance features that are “much more advanced” than traditional electric cars or traditional gasoline-powered cars, said Yiming Wang, an analyst at China Renaissance Securities. he said.
Maximizing price and mileage are two other top priorities for consumers, Wang said.
multi-million dollar business
Apotronics' Li said he expects demand for automotive technology to add “hundreds of millions of yuan” (equivalent to about $40 million to $100 million) in revenue this year for his new business unit. . Li said the Shanghai-listed company had previously generated total revenue of about $300 million a year.
Asked about Tesla, Mr. Lee said he was not authorized to provide details, but said officials at the U.S. automaker “want something completely different than Chinese automakers.”
He also noted that Apotronics' experience is that Chinese customers are willing to pay a premium for automotive technology, while U.S. automakers are focused on cutting costs.
That's because electric car batteries and other parts are not manufactured in the United States, Lee said, meaning U.S. companies are already paying a premium for core parts of electric cars. .
The supply chain for electric vehicle batteries is dominated by Chinese companies.
In fact, BYD's success is largely due to its early efforts in the battery field, which can now reduce costs, said Zhong Shi, an analyst at the China Automobile Dealers Association.
BYD surpassed Tesla in total car production in 2023 and sold more battery-only cars in the fourth quarter than any U.S. automaker.
Traditional foreign car giants such as Volkswagen have struggled to adapt to the surge in electric vehicles in China, while domestic companies such as smartphone company Xiaomi and Geely-backed startup G-Car have struggled to launch electric vehicles. is in a hurry.
“I think the German system is mechanical and comes from the bottom up. [The] “The Chinese system is being digitized from the top down,” said Omer Ganjusfoglu, a member of the German National Academy of Sciences and Engineering.
When designing a car, German engineers think about horsepower first, but Chinese engineers start by designing the cockpit and then consider the interior, he said Monday at Huawei's “5G Advanced'' event. During his speech, he quoted a Chinese automobile engineer.
Promoting driving support in China
Driving assistance emerged as a competitive feature for electric vehicles in China last year.
Tesla's version of Autopilot, which helps drivers drive on highways, is available in the country, but the company's Fully Self-Driving (FSD) feature for urban areas is not.
Chinese regulators are gradually allowing the use of driver assistance features in passenger cars in urban areas, such as smooth braking at traffic lights. Chinese authorities also announced in November that they would promote the development of driver assistance and autonomous driving technology nationwide through a pilot program.
However, it remains unclear how much consumers are willing to pay for such features.
“Customers, especially those in China, consistently show in surveys that they are willing to pay more for general safety and navigation. [advanced driver assistance system] “If you ask about features, the answers change when asked about specific ADAS features, and purchasing behavior tells a different story,” says Mobility Impact Partners, a private equity fund that invests in transportation. said partner Shay Natarajan.
“We have over 20 unique ADAS features,” she said, noting blind spot warning and surround camera views are the most popular items. She added, “Please note that FSD is not high on her list of ADAS features that customers are willing to pay for.”
