Domestic Automotive Industry: Is Autonomous Driving Still Required?
April 21, 2025, 12:35
In recent discussions at the 2025 Shanghai International Automotive Exhibition, industry experts have raised questions about the future of domestic autonomous vehicle manufacturing. FAE, a leading automotive supplier, stated, “The primary focus is on domestic brands, and we need to ensure that we are aligned with market demands.”
Currently, the automotive market is predominantly led by foreign enterprises. According to IDC data, by the first half of 2024, the share of autonomous vehicles is expected to significantly increase, propelled by the entry of major foreign manufacturers. This shift is driven by advanced technologies from companies such as NXP, STMicroelectronics, and Texas Instruments, which are combining to capture over 47.8% of the market.
However, the recent policies implemented by the US have affected the automotive industry’s ability to absorb these changes, prompting a reevaluation of domestic production capabilities. During April, reports from a Tier 1 supplier indicated that domestic electric vehicles (EVs) are facing challenges in competing with imported models.
The report highlighted that the automotive industry’s self-driving technologies can be categorized into several types, including control systems, communication systems, and energy management systems. The Tier 1 supplier emphasized that the focus should be on enhancing these technologies to improve the competitive edge of domestic brands.
Despite these advancements, the domestic market is still grappling with challenges, with production levels fluctuating between 5% and 15%. The transition towards autonomous vehicles has faced hurdles since 2020, with significant strides being made in the past few years.
Industry experts predict that the gap between domestic and foreign brands is widening, particularly in high-end segments where foreign brands have established a firm foothold. The push for domestic EVs is likely to continue intensifying, with companies looking to enhance their supply chain and production processes. The need for improved technologies and manufacturing capabilities remains critical for the success of domestic automotive brands in the competitive landscape.
In conclusion, as the automotive industry evolves, it is clear that domestic manufacturers must prioritize innovation and adapt to changing consumer demands to remain competitive. Collaboration between Tier 1 suppliers and automotive companies will be essential to accelerate the development and deployment of autonomous driving technologies.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/the-rise-of-domestic-auto-manufacturing-and-the-demand-for-autonomous-vehicle-control-systems/
