This means China’s vehicle software accounts for 30% of the nation’s software market
China’s vehicle software market, valued at over 65 billion yuan (approximately 9.2 billion U.S. dollars), now represents 30 percent of the country’s total software market, according to a recent report. This is not slowing down anytime soon as well.
This report, which outlines the development of new productive forces within China’s automotive sector, was jointly published by the China Automotive Engineering Research Institute and the China Economic Information Service. It was unveiled during the Automobile New Quality Productive Force Development Forum in Chongqing Municipality.
Moreover, Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, highlighted that the automotive industry is transitioning from an initial phase of electrification to a new phase that prioritises intelligent technologies. This is a good time to remind everyone that “made in China” no longer means low quality.
This shift emphasises the importance of software, operating systems, and automotive chips as essential components for enhancing vehicle performance. Xu pointed out that vehicle software is vital for managing various functions of a car, including its facilities, driving dynamics, and communication capabilities.
The report also noted a significant increase in the localization rate of automotive chips, driven by advancements from companies such as Huawei. The localization rate for power semiconductors has reportedly risen to between 15 percent and 20 percent, indicating substantial progress in domestic chip development.
On top of that, this improvement in local chip production is crucial as it reduces reliance on foreign suppliers and enhances the overall resilience of the automotive supply chain. The automobile industry is a cornerstone of China’s economy, with the gross output from the entire automotive industrial chain contributing approximately 10 percent to the nation’s gross domestic product.
This statistic underscores the sector’s significance, not only in terms of technological advancement but also as a vital economic driver for the country. As the industry increasingly adopts intelligent technologies, the potential for future innovations in automotive design and functionality appears promising.
The integration of advanced software and localised components positions China to lead in the rapidly evolving automotive landscape. With an ongoing focus on enhancing the quality and intelligence of vehicles, the country is set to redefine mobility and establish a more sustainable automotive ecosystem.
We got all this from Business Upturn and their full article is linked here. Thank you Business Upturn and their full article is linked here.
