The automotive industry has officially entered a new era defined by intelligence, arriving after the wave of electrificationThis transition is expected to unfold at an unprecedented pace, with intelligent features anticipated to become an obligatory standard in vehicles within the next year or twoThe idea that a car can exist without intelligent functionalities will soon seem outdated.
On December 20, Zhang Yongwei, the Vice Chairman and Secretary-General of the China Electric Vehicle Hundred People’s Association, pointed out that after two to three years of development, the automotive sector has now shifted its focus regarding intelligence from simply inquiring whether a vehicle is "smart" to questioning the quality and effectiveness of its smart features.
This pivotal moment signals a transformation in the automotive industry’s power dynamics, where the consensus is clear: electrification is merely the first act, while the subsequent act is driven by intelligence
This newfound focus on intelligent competition is establishing itself as a strategic terrain for automakers, intensifying the race for technological supremacy.
However, the last couple of years have revealed that many bold initiatives, particularly the aggressive rollout of Urban Navigation Assisted Driving (NOA), have yielded few successful implementationsMany vehicles have merely slapped on interactive voice technology labels, eroding the notion of authentic intelligence and raising the emergence of "pseudo-intelligent concepts" in the marketplace.
The expectations surrounding automotive intelligence have evolved, and it is no longer sufficient for companies to ride on early-phase hype or abstract concepts; hard-core competition based on AI capabilities, computation power, chip acquisition, integrated vehicle-road-cloud solutions, and smart ecosystems will determine which players will succeed in the rapidly changing environment.
The concept of "software-defined vehicles" is gradually giving way to that of "AI-defined vehicles." As intelligent systems evolve, cars are no longer just seen as mere transport tools but as dynamic mobile platforms
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The focus has shifted from discussing how software can bring new shapes and functionalities to vehicles towards how artificial intelligence can fundamentally enhance their performance.
With the rapid development of AI, automobiles are now among its primary endpoints and carriersAs noted by Lang Xianpeng, Vice President of Autonomous Driving Research and Development at Li Auto, the narrative is shifting decisively from "software defining cars" to "AI defining cars."
The emergence of the AI era places vehicles in a spotlight role; Tao Ji, Chief Intelligent Driving Officer at Changan Automobile, argues that cars have become standard carriers capable of embodying large AI models within the physical worldCars are being infused with new life through AI technologies, and automakers find themselves at a crossroads: they have the data to "AI define cars" and also boast advantages in defining this concept from a comprehensive vehicle perspective.
Moreover, as AI breathes life into vehicles, it can also leverage vehicles to empower AI further
The future may see the rise of various robotic forms and embodied intelligences, but for now, the path forward must be constructed based on existing standardized carriers—namely, carsAccording to Liu Xuan, Vice President and Partner at Yuan Rong Qixing, "Vehicles are presently the best platform for artificial intelligence, capable of executing complex driving tasks in the physical world, much like humans do."
He emphasizes that intelligent driving is no longer dictated by traditional modular rules but rather driven by AI and the algorithms it brings to the tableThe collaboration between AI and the automotive industry has emerged as a crucial theme in the intelligence revolution.
The idea of "AI defining cars" is gaining traction among industry insidersThis transition signifies the movement from initial conceptualization to strategic execution, with AI fueling a comprehensive evolution of automotive intelligence
Zhang Yongwei views this integration as transformational due to the substantial assistance AI brings to smart technology development in vehiclesOnce, internet and semiconductor technologies were the key drivers, but the industry now recognizes that AI technology is fundamental to progressing automotive intelligence.
"When considering the underlying technologies for intelligent vehicles, the perspective must focus primarily on artificial intelligence," Zhang emphasizesTechnologies that once led the way are now in jeopardy of being overshadowed by the new paradigms brought forth by AI advancements, such as end-to-end and large model-based intelligent driving solutions that have shifted development directions dramatically over the past few years.
As the automotive sector and AI increasingly converge, you Zheng, Deputy General Manager at Dongfeng Motor Group Co., Ltd., states that the core competitiveness of intelligent connected vehicles will undergo significant changes, foreshadowing a recalibration of the competitive landscape in the industry.
Transitioning from feature allocations to capability assessments, the integration of AI within automotive products has opened up numerous innovative applications and experiences
AI enhances interactivity, safety, and overall functionality, pushing automotive technology to new heights.
In this AI-centric age, the initial discussions centered around features such as intelligent driving and interactive smart cockpits have evolved into more profound inquiries regarding effectiveness and value"In the age of AI, the entire product is evolving from mere functionalities to sophisticated capabilities," Lang remarkedThis evolution hinges on abundant data and enhanced computational capabilities, which represent the fundamental resources required for technological development and innovation.
New technological paradigms are emerging and reshaping the landscapeFor instance, Tao Ji illustrated a scenario in which a car owner issues a command, prompting the vehicle's central "brain" to manage control end-to-end while weighing safety considerations in real timeEach decision integrates user feedback, returning normal operation afterward; thus, the effectiveness of these processes is heavily reliant on computational power and data.
As more players enter the automotive space, the industry has begun to pivot towards a user-centric development model propagated by stronger internet integration
AI technologies, characterized by vast computational capabilities, big data, and sophisticated models, are emerging as the driving forces behind profound automotive transformation.
You Zheng indicates that the automotive sector is maturing into an innovative ecosystem anchored around AI solutions, prioritizing high-level autonomous driving and multimodal human-machine interactions, which elevates the demand for car manufacturers to rebuild their core competitive advantages.
The deployment of large models continually advances vehicle capabilities, with solid computational underpinnings being crucialFollowing this trend, Zhang Yongwei predicts that vehicles will emerge as the most significant mobile computing entities, asserting that, "The availability of computational power will soon become a fundamental criterion for evaluating automotive capabilities."
This pivotal shift implies that moving from generalized concepts of intelligence to specific methodologies concerning how AI empowers vehicles will spotlight computational chips as a focal point within the industry
"In the past, vehicles served to enhance battery performance; in the future, they will likely optimize chip performance," Zhang points out, correlating the evolution to the differentiation between electrification and intelligenceTraditionally, vehicles hinged on batteries for value and profit; moving forward, chips will similarly demand focus in cost management and profitability.
However, the current technological landscape reveals that local manufacturers have not yet regained control over core technologies, considering that nearly 90% of the chips utilized in Chinese vehicles are sourced from overseas suppliers, leaving domestic options as relatively scarce.
To ensure stability within the supply chain and control over costs, Zhang Yongwei offers two strategies: first, to enhance the localization of global chip manufacturers in China, particularly through established manufacturing processes, thus creating stable supply chains; secondly, to bolster domestic enterprises’ capabilities to strengthen their market share in automotive chips.
The conversation surrounding autonomous driving has historically centered around two predominant approaches: single-vehicle intelligence and vehicle-road coordination
The debate over which modality holds more significance has been ongoing, with Tesla taking the lead in single-vehicle intelligence, while vehicle-road-cloud integration is perceived as a uniquely Chinese approach to autonomous driving.
The rapid advancement of vehicle-road-cloud integration is now stepping into a new phase of demonstration applicationsAs more "smart cars" navigate "intelligent roads," there emerges an opportunity for collaborative development that enhances roadside perception and enables real-time interaction and cooperation between vehicles, roads, people, and environmentsThis evolving path gradually outpaces single-vehicle intelligence and unites industry efforts around a common goal.
Zhang Yongwei notes that while most manufacturers possess robust big data platforms with model development capabilities, what they lack is the data essential for training these models, which cannot be efficiently aggregated by a singular enterprise
The imperative for newly designed intelligent roadside infrastructure is evident, calling for broad urban deployment of cost-effective roadside facilities.
Achieving the goals of this ecosystem relies on combined efforts across relevant sectorsZhou Song, president of Valeo China, emphasizes the necessity for joint advancements in automotive intelligence among governments, society, and enterprises, asserting that supportive policies and collaborative innovation between enterprises are required to expedite industry transformation.
From the corporate perspective, Peng Fan, Vice President of Xingji Meizu Group, states, "The intelligence of automobiles transcends single-vehicle capabilities; it necessitates interconnected ecosystemsExperiences should extend beyond the traditional cockpit interface to seamlessly connect with smartphones and broadband devices, offering a broader scope of integration; this marks products brimming with potential." Enterprises must engage in constructing an intelligent mobility consumption ecosystem, serving consumers with multi-terminal, all-scenario, immersive experiences.
The evolution from mechanical design to automotive manufacturing, to the deep integration of optimized electronic engineering and software, and now to a hyper-connected experiential landscape presents an expansive range of new automotive scenarios.
Notably, the Ministry of Industry and Information Technology, along with the Public Security Bureau and other governmental departments, has identified 20 cities, including Beijing, Shanghai, and Shenzhen, as pilot cities for "vehicle-road-cloud integration" applications
With the transition of these initiatives from limited tests to widespread demonstrations, the development of intelligent connected cars has rapidly accelerated, urging the Chinese automotive industry towards high-end, smart, and green transformations.
This past half-year, the penetration rate of new cars at Level 2 and above in China has reached 55.7%. You Zheng anticipates total sales of smart connected vehicles to exceed 17 million units this year, with a penetration rate surpassing 60%.
Automakers are ramping up investments in intelligent technologies, hastening the progression of advanced automation, smart driving, and large model initiativesThe acceleration of Level 3 and above automated driving is paving the way for collaborative vehicle-road-cloud advancements to emerge as a dominant trend.
Looking ahead, You Zheng projects that the value increment from vehicle-road-cloud integrated smart connected vehicles will reach 2.58 trillion yuan by 2030, of which the newly added value of smart connected vehicles will account for 2.03 trillion yuan