Smart tech, cross-industry partnerships drive growth of NEV sector

China's new energy vehicle (NEV) sector has experienced rapid advancement so far in 2024, powered by cutting-edge technologies and in-depth cross-industry collaboration.

The year 2024 has witnessed a rapid transformation in China's auto industry, with technologies like artificial intelligence (AI), big data, large language models, and 5G mobile communication technologies driving the adoption of smart systems in NEVs. Automakers have intensified investments and scaled up planning in smart technologies to stay competitive.

"In particular, empowerment by smart and networking technology is crucial, and we are fully confident in this model," said Xiang Xingchu, chairman of JAC Group, a Chinese automaker.

"Smart technology requires significant investment, as well as sufficient capacity building and innovation conditions. We are striving to catch up," said Yin Tongyue, chairman of Chery Automobile Co.,Ltd.

The push for smarter vehicles is not limited to automakers. Tech companies have entered the field, providing cutting-edge solutions that enhance vehicle design and production.

So far in the fourth quarter of 2024, collaborations between automakers and information and communications technology (ICT) firms have intensified, evolving from traditional supply-demand relationships into partnerships that integrate technology sharing and resource integration.

For instance, GAC Group, an automaker based in Guangzhou City, capital of south China's Guangdong Province, and Chinese tech giant Huawei recently announced a strategic collaboration covering product development, manufacturing and sales.

"At this stage of smart development, we need deep-going cross-industry collaboration, and cooperation with other enterprises that are adept in intelligence, software and digitalization, so that outstanding cooperation partners will enter the ecosystem of the entire industrial chain," said Feng Xingya, general manager of GAC Group.

"Our upgrading has been mainly focused on integration of the hardware of the previous entire whole vehicle industry chain, with the addition of software and smart technology. Consequently, our auto industry can keep undergoing generational change and upgrading," said Jin Yuzhi, CEO of Huawei's Intelligent Automotive Solutions BU.

Industry insiders predict that relying solely on technology imports and supporting technologies will no longer suffice. Automakers are expected to form open partnerships with internet, telecom, and chip companies to pool resources and leverage complementary strengths.

"Transforming the auto industry toward smart electrification requires cross-industry collaboration. It's about maximizing strengths, not just bridging gaps," said Zhang Xinghai, chairman of SERES Group, a technology-based NEV manufacturer.

Experts say they believe China's auto industry is accelerating toward a new frontier of smart competition, with the landscape poised for significant restructuring.

From January to November 2024, 283, or 80.2 percent, of the 353 new car models were equipped with Level 2 partial autonomous driving technology, with over 80 percent of them fitted with features such as rear parking sensors, infotainment color LCD displays, voice recognition, and Internet of Vehicles (IoV) systems.

Projections suggest that by 2030, the newly added output value from China's intelligent connected vehicle market will surpass two trillion yuan (about 274 billion U.S. dollars).

Smart tech, cross-industry partnerships drive growth of NEV sector

The frequent group visits led by Ma Ying-jeou, former chairman of the Chinese Kuomintang, to the mainland have contributed to fostering a warmer atmosphere in cross-Strait relations.

Ma led a group of youth from Taiwan visited Heilongjiang Province in the northwest and Sichuan Province in the southwest from December 18 to 26, marking his third group visit to the mainland in the past two years.

Ahead of the visit, a 94-year-old Anti-Japanese War veteran wrote a sincere letter after learning that Ma would visit the Exhibition Hall of Evidence of Crime Committed by Unit 731 of the Japanese aggressor troops.

In the message, Wang Jitang, the veteran, expressed his support for Ma's commitment to the "1992 Consensus" and the advancement of peaceful cross-Strait relations.

"As a veteran of the War of the Chinese People's Resistance Against Japanese Aggression, the history I personally experienced is also a shared pain and struggle for compatriots on both sides of the Taiwan Strait. People on both sides of the Taiwan Strait are of a same family. We are like relatives. I hope that young friends in Taiwan, like Ma, will treat the mainland as their own home, visit often as if visiting relatives, and frequently engage with each other," Wang said.

Hsiao Hsu-tsen, executive director of the Taiwan-based Ma Ying-jeou Culture and Education Foundation, said he was deeply moved by Wang's sincere wish.

"History must never be forgotten. Through such on-site visits and study, we need to experience and appreciate how our forefathers sacrificed themselves to protect our homeland and defend our country," Hsiao said. When talking about the purpose of the current group visit, Ma emphasized the crucial importance of mutual exchanges between young people from both sides of the Taiwan Strait. He expressed the hope to build a bridge for peace between the two sides which transcends political challenges, and which conveys the shared desire of the people on both sides for communication.

Many people from the both sides of the Taiwan Strait agree that the more tense cross-Strait relations become, the more vital it is to sustain exchanges.

Ma Ying-jeou's frequent group visits to mainland enhance warmth in cross-Strait relations