Intelligent vehicle sector braced for new challenges, opportunities

Of the roughly 200 existing generative AI large models worldwide it is estimated that more than 190 are likely to eventually be phased out, and market reshuffling for them should be determined by competition rather than government directives, Zhang Yaqin, dean of Tsinghua University's Institute for AI Industry Research, told the summit.

According to data released by the Ministry of Industry and Information Technology, China saw 7 million new passenger vehicles with driving-assist features sold in 2022, a 45.6 percent year-on-year increase, securing a 34.9 percent market share. During the first half of this year, such vehicles made up 42.4 percent of total passenger vehicle sales.

Su Tan, manager of the intelligent automotive business in Baidu's intelligent driving group, said the latest data indicates intelligent driving features now play a significant role in automobile purchasing decisions, constituting 10 percent of the decision-making factors. Su added that the autonomous driving industry is advancing rapidly, with Level 2 functions trending toward becoming standard features.

Meanwhile, Wang Xiaofei, vice-president of Changan Automobile, predicted this year's retail sales of NEVs in China will exceed 7.7 million units, accounting for 38 percent of total sales. It is anticipated they will make up 70 percent of sales by 2025, and domestic brands will usher in their best-ever decade of development. Chinese brands have a market share as high as 82.9 percent of the NEV sector and have established unique competitive and technological advantages.

Wang said intelligence is expected to drive the upgrade of domestic brands with encouraging policies, improved technologies and decreasing costs combining to make advanced intelligent driving a core advantage.

As crucial enablers of intelligent functionality, chips are undergoing rapid research and development transformation to meet the demands of the fast-growing market. Liu Tong, chip giant Nvidia's global vice-president and general manager of its automotive business in China, said intelligent driving will continue to showcase more complex problem-solving capabilities in vehicles.

"We'll reduce the number of chips, increase functionality per chip, and improve cost-effectiveness and vehicle design while moving toward a centralized computing model," Liu added.

Qiu Xiaoshen, founder and CEO of Axera Semiconductor Co, said that with the auto industry's focus on cost reduction and enhanced efficiency leading to intensified competition, Chinese chip companies have an opportunity to excel in the intelligent driving sector, bolstered by the nation's prominent role in the global NEV manufacturing sector. She expects Chinese chip companies to capture a major market share of the domestic intelligent driving chip market within three years.

Wu Feng, an official of the Ministry of Industry and Information Technology, told the summit that along with the advancements there are still some challenges, and the ministry will address them by accelerating policy and regulatory enhancements, exploring technology development routes and commercialization models, and bolstering collaborative industry management.