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Tech firms eye big footprint in vrooming NEV sector

Efficient supply chain, talent and rising demand attracting more players

By MA SI | China Daily | Updated: 2024-05-03 08:24
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Employees work at the assembly line of Xiaomi SU7 electric sedans in Beijing in March. HE GUANXIN/FOR CHINA DAILY

Chinese technology companies are foraying into the new energy vehicle industry, believing that the smart driving functions of electric vehicles will be key to winning market competitions over the next decade.

From supplying autonomous driving systems to developing cars, tech companies such as Huawei Technologies Co and Xiaomi Corp are emerging as competitive auto players. They bank on China's complete and highly efficient supply chain, its huge research and development talent and the enthusiasm shown by local consumers for cutting-edge technologies, according to company executives and experts.

About 40 percent of new vehicles sold in China this year will be NEVs, and they will have smart features that help NEV makers stand out amid increasingly fierce competition, they forecast.

"The upward spiral is expected to continue, with about 50 percent of new vehicles sold in China being NEVs in 2025. This is expected to hit 70 percent in 2030, with annual deliveries reaching around 20 million units a year," Ouyang Minggao, an academician at the Chinese Academy of Sciences, said.

Smart functions, with autonomous driving features at their core, are proving to be more important as automakers try to differentiate their products from others, Ouyang said.

"It is possible to introduce some basic driving-assist functions into gasoline vehicles, but electric vehicles have natural advantages in terms of precision control," he added.

Eyeing the big opportunities ahead, Huawei is expanding its presence in the NEV sector.

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