In China, Chinese car manufacturers are leading not only in NEVs but also in V2X. Many Chinese systems have adopted a number of V2X functions, mainly V2V (vehicle-to-vehicle communication) and V2I (vehicle-to-road communication), as of 2023. However, road-side communication facilities (RSUs) are still underdeveloped. Under these circumstances, on 31 August 2023, the Chinese government think-tank, Electric Vehicle 100 People’s Association, signed a market-oriented operational partnership with the Xiangyang Municipal Government of Hubei Province. It aims to lead the world in V2X by promoting roadside communication facilities with the goal of low cost and wide coverage.

We continuously report on the management strategies, production systems, sales strategies and alliance trends of China’s major car manufacturers and parts suppliers. The report also focuses on the NEV market, where China is ahead, and areas such as automated driving and digital cockpits.

In China, smart and automated driving has progressed rapidly in parallel with the electrification of vehicles. As the car market has matured, consumer needs have diversified and consumers have become more discerning about comfort and convenience, so new functions are being integrated into digital cockpits one after another. The digital cockpit market continues to expand at a brisk pace, thanks to a combination of an environment conducive to innovation, with many ventures emerging as electrification progresses, and a Chinese consumer base that is receptive to new technologies. In addition, China has applied for the largest number of patents in the world for digital cockpits, and trends related to digital cockpits by Chinese companies are attracting attention worldwide.

The rapid expansion of the EV market in recent years has also been influenced by the evolution of digital cockpits, which offer more convenient functions, and the fact that the current NEV purchase subsidy will end at the end of 2022, which could lead to a decline in consumers’ willingness to purchase EVs, further increasing the importance of the digital The importance of digital cockpits as a key to EV sales is expected to increase further in the future. Chinese OEMs are actively entering overseas markets with EVs as a breakthrough, for example by exhibiting a number of EVs at the Indonesia Motor Show in August 2022 and the Paris Motor Show in October of the same year. The effect of this is increasing the likelihood of full-scale overseas expansion of digital cockpit-related technologies and suppliers. For Japanese OEMs, China’s development in the EV and smart sector poses a threat, but also an opportunity to gain suggestions from the transformation. Opportunities for Sino-Japanese company collaboration are also increasing.