Summary

1. As we enter the CASE era, China’s automotive industry will see innovation in technologies and business models that are rooted in its unique advantages. In particular, tech firms in different industries are gaining notice for their advanced technical capabilities, their strong service innovation abilities, and their capacity for government-led implementation in society.
2. In each of these domains, players with high potential have already begun to emerge. Tech firms such as Huawei and SenseTime, armed with capabilities they have cultivated in other industries, are now getting involved with their eyes on the field of next-gen automotive technology. Digital platformers including Alibaba and Baidu with their customer contacts are also building and developing various data platforms both within their industries and laterally between them, and are actively engaged in the next-gen automotive area and the smart traffic field. The central government and regional governments have also begun leveraging their considerable powers of mobilization and financial strength to develop next-gen traffic systems in smart cities and inter-urban digital highways.
3. US and European companies have also started not only to corner the Chinese market (the largest automotive equipment market in the world), but also to explore ways of making their own products more sophisticated by adopting Chinese technology.
4. It is important for Japanese automobile-related companies to participate in China’s smart city initiatives involving field demonstrations of self-driving and next-gen traffic systems, as well as to engage in product launches and business development that account for anticipated technical standards. Further, they should also consider partnering with Chinese enterprises so as to promote world-leading technological and business model innovations there over the medium- and long-term.

Contents

1. A Structural Transition to “Integral 2.0”
2. Characteristics of China’s Automotive Industrial Structure
3. Trends Among Notable Key Players
4. Collaborations Between Foreign-Affiliated Companies and Chinese Key Players
5. Suggestions for Japanese Automakers

• Yi Zhang

  Deputy General Manager

  Nomura Research Institute Shanghai Limited

• Yukihiro Ogawa

  Senior Consultant

  Global Manufacturing Industry Consulting Department

• Zhou Jieliang

  Deputy Senior Consultant

  Global Manufacturing Industry Consulting Department