Emerging Automotive Supply Chain Innovators Shine at Shanghai Auto Show with Components for New Energy Vehicles

At this year’s Shanghai Auto Show, a striking trend was the emergence of new automotive supply chain companies, with numerous component suppliers setting up booths throughout the exhibition halls, creating a vibrant interaction with automotive manufacturers. Staff at these supply chain booths enthusiastically introduced their latest technologies and products, which included chips, battery packs, motors, and entire systems. Meanwhile, representatives from vehicle manufacturers highlighted features such as Huawei’s smart driving solutions or batteries supplied by Contemporary Amperex Technology Co., Limited (CATL).

This unique interaction became a notable highlight of the event. From batteries and chips to autonomous driving technologies, the importance of components in the automotive industry has surpassed previous levels. The competition in the global automotive industry is no longer solely about vehicle brands; it is now a contest of supply chain technologies. Chinese component manufacturers are reshaping the global automotive landscape through continuous technological innovation.

<b>The "Star" Effect Emerging</b><br>
This year's Shanghai Auto Show featured 13 exhibition halls, with component and new technology companies occupying four of them for the first time. The exhibition area dedicated to these suppliers reached 100,000 square meters, with the number of component exhibitors nearly six times that of vehicle brands, marking a historic high. The showcase included everything from core raw materials and key components to midstream offerings like batteries, motors, and electronic control systems, as well as innovative technologies such as intelligent connectivity, autonomous driving, and in-vehicle AI. Industry insiders humorously remarked that these exhibits could almost piece together a complete electric vehicle.

A dedicated "China Chip" exhibition area showcased exceptional automotive chips designed for various applications, including high-performance computing chips, intelligent driving chips, and those specifically for electric vehicles. Visitors could directly observe the critical role that automotive-grade chips play in the development of smart vehicles. Li Bin, founder of NIO, defined the "three new essentials" of smart cars at the event: intelligent driving chips, a universal operating system, and a smart chassis. He introduced two automotive-grade 5-nanometer intelligent driving chips, the Shenjing NX9031, which has become the world's first mass-produced automotive-grade 5-nanometer chip in the NIO ET9.

These "three new essentials" represent a platform for domestic supply chain companies to break through technological barriers, allowing startups with core technical capabilities to rapidly emerge as stars in the global automotive market. CATL's booth was located next to Xiaomi, showcasing its second-generation Shenxing supercharging battery, low-temperature sodium batteries, and dual-core batteries. Horizon Robotics, situated near Audi, launched its L2 urban NOA system HSD, which has become China’s first self-developed, hardware-software integrated, and mass-producible urban auxiliary driving system.

Momenta, a prominent player in intelligent driving, was positioned next to Toyota. During the exhibition, Momenta announced further strategic partnerships with six major brands, including Buick, FAW Toyota, Honda China, Cadillac, SAIC Audi, and Zhiji. As of now, Momenta has collaborated on over 130 models for mass production. CEO Cao Xudong noted the rapid growth in production, achieving 100,000 units in just six months for its second batch, with an expectation to reach a third batch of nearly 100,000 units by May this year.

The strategic arrangement of booths suggested that the lines between vehicle manufacturers and suppliers are increasingly blurred, indicating a deep integration and coupling between the two.

The innovation breakthroughs by local component manufacturers have created a sense of urgency among multinational giants, prompting them to accelerate their local research and development efforts. At this year’s auto show, top global component suppliers like ZF, Bosch, Magna, Continental, Faurecia, Valeo, and Aptiv showcased their latest products and local innovations. For instance, Bosch introduced a new smart solution for heavy-duty and light-duty trucks, while ZF's Chassis 2.0 made its debut at the Shanghai Auto Show.

<b>Capitalizing on Niche Markets</b><br>
Under the wave of electric vehicles, domestic automotive supply chain companies are honing their skills and shining brightly. They often start from a specific category and delve deeply, continuously expanding their space in niche markets.

Sitech (Shanghai) Electronic Technology Co., Ltd., based in Minhang District, Shanghai, is an integrated circuit company focused on the research, design, and sales of image sensors. At this year’s auto show, Sitech showcased its pedestrian detection application, which impressed many attendees. “You will see various colors in the images; if an object is within one meter while reversing, it shows a red frame; within two meters, a yellow frame; and a green frame indicates a safe distance of three meters. A blue frame means pedestrians are outside the reversing area,” explained a staff member. This detailed color coding demonstrates the sensor's sensitivity and accuracy. Many new energy vehicles now come equipped with multiple cameras, such as BYD's 'Heavenly Eye,' which features 12 cameras, making it more user-friendly for drivers needing distance judgment.

Additionally, by installing in-cabin cameras, technology can monitor driver fatigue and passenger conditions, effectively reducing accident risks. The rapid growth of domestically produced advanced intelligent driving systems has prompted Sitech to benchmark against industry leaders like Sony, continuously refining its image sensor technology. Currently, products powered by Sitech's self-developed chips are widely used in automotive, mobile, and industrial sectors, and are priced 15%-20% lower than similar foreign brands.

How many airbags can a vehicle be equipped with? Jinzhou Jinheng Automotive Safety Systems Co., Ltd., under the Wangd Group, provides the answer: airbags can wrap around the entire vehicle. “This time we showcased bumper airbags, trunk airbags, zero-gravity seat enveloping airbags, and front hood airbags, all designed to effectively protect passengers and enhance road safety during accidents,” a booth representative explained. The full vehicle airbag solution is a non-standard product that focuses on mutual development with vehicle manufacturers, requiring stringent triggering conditions supported by advanced intelligent driving systems. Currently, there are fewer than ten companies globally specializing in 'passive safety,' and Jinheng's airbags are 10%-20% cheaper than similar Swedish products. Notably, all components of this airbag are produced domestically, ensuring independence in design, supply chain, and product quality.

“Our current airbag pricing ranges from 300 to 500 yuan, providing strong price competitiveness. We are seeking collaborative development with companies like Chery, Geely, and Volkswagen, offering both affordable models starting from around 100,000 yuan and mid-to-high-end models above 300,000 yuan.”

As China’s automotive market enters the era of intelligence, the entire automotive supply chain system is poised for reconstruction. The companies that can meet user demands, provide reliable products with high cost-performance ratios, and continue to innovate will gain greater influence within the automotive industry.