The front seats of the Aito M9 SUV are adjustable to create reclining seats for the second row. Passengers can watch movies on the fold-out projector screen while storing drinks in the refrigerator compartment.
CNBC | Evelyn Cheng
BEIJING – Fierce competition in China’s electric vehicle market is prompting local automakers to sell vehicles with advanced technology. Tesla Not yet available in the country – sometimes at lower prices.
Companies no longer compete primarily on miles driven. Instead, when they roll out new models at a rapid pace, they add a slew of features: in-car projectors, refrigerators, and driver-assist systems, to name a few.
Tesla’s cars don’t come with these accessories, and Musk’s automaker currently only offers limited versions of the driver-assistance technology in China.
“Electric vehicles have become a consumer electronics product in China. This is similar to the mobile phone industry.” Li Yi, chairman and CEO of Guangfeng Technology, said. Guangfeng Technology is a Shenzhen-based laser display company that claims to work with major automakers.
“In China, I think it’s more about entertainment, more gadgets, and people really want to buy something with the most advanced technical specifications,” he said, adding that in Europe, people are more focused on functionality.
Guangfeng Technology claims that the company produced the 32-inch projection screen deployed in the newly launched M9 SUV of Huawei’s Aito brand. Huawei did not immediately respond to a request for comment.
Aito said that as of January 1, orders for the M9 had exceeded 30,000 units, with deliveries expected to begin at the end of February.
The six-seater features a refrigerator, fold-down front seats and no physical dashboard, instead technology that projects information so it appears to be draped over the road ahead. The technology, called AR HUD, can also display navigation instructions.
The M9 SUV is priced at about 470,000 yuan to 570,000 yuan ($66,320 to $80,430).
In comparison, Tesla’s mid-size SUV Model Y starts at 258,900 yuan, while the Model S sedan starts at 698,900 yuan.
Among other well-known competitors, ideal carIts L9 SUV starts at 429,900 yuan and is equipped with AR HUD, refrigerator and driving assistance technology.
XpengIts G9 SUV, widely regarded as a leader in driving assistance technology for urban streets in China, starts at 289,900 yuan.
This is just the tip of the iceberg of China’s vast array of cars and existing facilities. According to HSBC, China will launch more than 100 new electric vehicle models in 2024.
Wang Yiming, an analyst at Huaxing Securities, said consumers’ interest in new cars is mainly focused on in-car technology features and driver assistance functions – which are “much more advanced” than previous electric cars or traditional gasoline-powered cars.
Price and maximizing mileage are two other top considerations for consumers, Wang said.
multi-million dollar business
Guangfeng Technology’s Li expects demand for automotive technology to help his new business unit generate “hundreds of millions” of revenue this year, equivalent to about $40 million to $100 million, he said. The Shanghai-listed company previously had total annual revenue of about $300 million, Li said.
Asked about Tesla, Li said he was not authorized to reveal details but said the U.S. automaker’s employees “want something completely different than the Chinese automakers.”
He also pointed out that based on Guangfeng Technology’s experience, Chinese customers are willing to pay a premium for automotive technology, while U.S. automakers are more focused on reducing costs.
Li said that’s because EV batteries and other parts are not made in the United States, meaning American companies are already paying a premium for core parts of EVs.
Chinese companies dominate the electric vehicle battery supply chain.
In fact, the main reason is BYD Zhong Shi, an analyst with the China Automobile Dealers Association, pointed out that the reason for its success is its early work on batteries, which can now reduce costs.
BYD surpassed Tesla in total vehicle production in 2023 and outsold the U.S. automaker in all-electric vehicle sales in the fourth quarter.
Foreign traditional automobile giants such as Volkswagen Companies are struggling to adapt to China’s surge in electric vehicles, with domestic companies including smartphone company Xiaomi and Geely-backed startup Zeekr scrambling to launch electric vehicles.
Omer Ganiyusufoglu, an academician of the German National Academy of Sciences and Engineering, said: “I think the German system is a bottom-up mechanical system. The Chinese system is a top-down digital system.”
Speaking at Huawei’s “5G Advanced” event on Monday, he quoted a Chinese automotive engineer as saying that when designing a car, German engineers consider horsepower first, while Chinese engineers start with cockpit design and then the interior. .
China’s driving assistance push
A version of Tesla that helps with driving on highways – called Autopilot – is available in the country, but the company’s “Full Self-Driving” (FSD) feature on city streets has not yet been launched in the country.
Chinese regulators are gradually allowing passenger cars to use more driver-assist features in cities, such as smooth braking at traffic lights.Chinese authorities also announced in November Nationally promoted Develop driver assistance and autonomous driving technologies through pilot programs.
However, it’s unclear to what extent consumers are willing to pay for these features.
“Although customers, especially Chinese customers, always say in surveys that they are willing to pay for general safety and navigation (advanced driver assistance systems) features, their answers change when they are asked about specific ADAS features. buying behavior tells a different story,” said Shay Natarajan, a partner at Mobility Impact Partners, a private equity fund that invests in transportation.
“ADAS has more than 20 unique features,” she said, noting that blind spot warning or surround camera views are among the most popular. “Please note that FSD is not at the top of the list of ADAS features that customers are willing to pay for.”
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