Dependent Chinese Automakers Rely on Technologies from Tesla, Waymo, and Other Industry Leaders for Autonomous Driving.
Getting ahead in the self-driving car game, Chinese manufacturers are dominating the field according to recent data.
China's auto market saw more than half of its vehicles sold last year packed with advanced technologies for assisted driving, far surpassing the less than 40 percent in the U.S.
Chinese brands like BYD are leveraging free autonomous driving technologies that aren't offered by major U.S. players like Tesla.
In the fierce competition among automakers for autonomous cars, Chinese brands are leaving their U.S. counterparts, including the likes of Waymo and Tesla, in the dust.
China's lead in the global race to deploy self-driving technologies, which has been growing for years, becomes clearer with analysis from international consulting firm AlixPartners. Around 24 percent of the cars sold in the U.S. and China in 2021 were equipped with technologies that enable them to drive, accelerate, and brake autonomously.
While western companies like Tesla are making waves in the U.S., Chinese manufacturers pose strong competition. Last month, Tesla rival BYD announced that it would install its autonomous driving technology, "God's Eye," for free in almost all electric and hybrid cars.
In the battle for autonomous cars, Tesla is fading into the background on its second-largest market. The company of the world's richest man, Elon Musk, charges around $9,000 for the software for driver assistance.
"Additional intelligent driving functions are becoming an important competitive tool that further differentiates the offers of Chinese brands from those from overseas," says Yvette Zhang, automotive expert at AlixPartners. China's massive pool of tech talent is driving domestic developments. Even giants like Xiaomi and Huawei have entered the electric car business.
China offers an attractive market for electric cars with self-driving assist. A survey conducted by AlixPartners among 400 automotive industry leaders found that the availability of machine learning talent and AI expertise in China was a key advantage, along with proximity to microchip hubs and more efficient data processing.
"Chinese brands are leveraging their competitive advantages to develop faster and cheaper solutions for intelligent driving that are good enough to bring to market," said Stephen Dyer, Asia lead of the Automotive and Industrial Practice at AlixPartners.
Some global automakers are forming strategic partnerships with Chinese companies to acquire their technologies. Last year, Volkswagen struck a deal with Chinese electric vehicle upstart Xpeng to develop technology for future products, including assisted driving.
However, China's autonomous driving revolution hasn't been a smooth ride. Last month, a Xiaomi SUV electric vehicle was involved in a fatal crash on a Chinese highway. Xiaomi confirmed that the vehicle's intelligent driving system was engaged before the crash. The human driver took over the wheel just seconds before the accident.
In the aftermath, Chinese authorities tightened regulations for autonomous driving technologies. They advised automakers not to raise excessive expectations or foster false trust among consumers, and reportedly asked companies to stop referring to their vehicles as "self-driving."
- What's interesting is that Zhang, an automotive expert at AlixPartners, states that additional intelligent driving functions are becoming a key competitive tool for Chinese brands, differentiating them from overseas counterparts.
- As for automakers, Chinese brands like BYD are gaining an edge by offering free autonomous driving technologies, a feature not found in major U.S. players' offerings, such as Tesla.
- The race for autonomous cars has seen Chinese brands overtaken their U.S. counterparts, with the former leaving the likes of Waymo and Tesla in the dust.
- Advances in technology, especially electric-vehicles and self-driving, have led China to dominate the automobile market, with more than half of vehicles sold last year packed with advanced technologies.
- Lifestyle technology in cars also plays a significant role in Chinese competition, with tech giants like Xiaomi and Huawei entering the electric car business. China offers an attractive market for electric cars with self-driving assist, thanks to a massive pool of tech talent and proximity to microchip hubs.
