Leading global automakers like BMW and Volkswagen are utilizing driver-assist technology to vie for dominance in the biggest electric vehicle (EV) market on the planet -- China. According to research firm Canalys' recently-released report, domestic Chinese brands have been able to capitalize on their first-mover position in the electric and intelligent vehicle sector with the integration of advanced driving assistance systems. BofA Securities' May report projects that China will remain the number one EV market worldwide, controlling between 40-45% of the market share in 2025.
Chinese electric vehicle makers are utilizing advanced tech to compete with both foreign and domestic brands in the crowded Chinese market. Canalys reported that 5.9 million EVs were sold in China in 2022, amounting to 59% of all EVs sold globally. According to Counterpoint Research, domestic brands control 81% of the EV market, with BYD, Wuling, Chery, Changan and GAC being the biggest names.
Canalys noted in a report that local producers have an advantage over joint ventures in terms of developing and deploying sophisticated assisted driving systems. BofA Securities anticipated in a May report that China would remain the biggest EV market in 2025, representing 40%-45% of the market. Their analysts concluded that Chinese automakers are expediting platform and technology upgrades, allowing for enhanced user experiences and increased EV penetration in the country.
On Friday, BMW China declared that it is hastening the development of hands-off automatic driving capabilities, also known as L3 or Level 3 application. Ahead of 2024, the organization plans to launch the features and will guarantee that they are compliant with local regulations. The utilization of L3 autonomous driving has not been extensively endorsed in China, even though some businesses, such as local EV producer Xpeng, have been allowed to assess the technology.
Last week, Volkswagen Group declared its investment of around $700 million in Xpeng as well as a stock acquisition of 4.99%. Ralf Brandstätter, Volkswagen AG's board member for China, stated in a company statement that they plan to expand their local electric portfolio and are preparing for the upcoming innovation step. The two will jointly create two electric vehicles with Volkswagen's advanced driver-assist software for the Chinese market, with the launch planned for 2026.
Tesla and Chinese EV companies are advertising self-driving capabilities in order to bring in customers, with the intention of eventually reaching complete driverless driving.
Gaining knowledge on electric vehicles, batteries, and semiconductors is a focus of CNBC Pro. In recent days, the competition for chip production has increased, causing one Chinese stock to rise by 30% within 5 days. With the progress Tesla is making in the development of humanoid robots, HSBC analysts have estimated that five global stocks in the supply chain will benefit. Now that investors are paying more attention to electric vehicles, certain auto stocks may soon have the potential to unexpectedly climb.
The battle over chips is escalating. This Chinese stock spiked, increasing 30% over the span of five days. Tesla's foray into humanoid robots is expected to give five global stocks in its supply chain a boost, according to HSBC. As investors move their attention to electric vehicles, experts predict these car stocks could surge.
For example, BYD is collaborating with Nvidia and Horizon Robotics to create autonomous driving technology. On Monday, Chinese automaker Leapmotor declared it had developed a new platform, intending to license it to other automobile companies to make intelligent EVs. On the same day, Japanese automaker Toyota declared it would increase its development of EV technology, in an attempt to compete in the Chinese market. "The growth of the Chinese market is occurring at an unprecedented rate. Toyota will also unite together in order to innovate the way we work & think to be successful in China," Tatsuro Ueda, CEO of China for Toyota, conveyed in a business statement."By furthering local development ... we will strive to create and give out competitive products that can please Chinese customers swiftly."
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