The evolution of the Internet of Vehicles can be roughly divided into three stages. It is expected that the scale will exceed 100 billion by 2021.

The Internet of Vehicles has become a hard requirement for many automakers. FAW announced that it will make the Internet of Vehicles system standard for all its products from 2019; Changan launched the "Beidou Tianshu" strategy, and will make all new cars connected to the Internet and equipped with driving assistance systems from 2020, and all new cars will have human-computer interaction functions from 2025. Dongfeng Qicheng released the brand concept of "Smart Fun Technology", deepened the Internet of Vehicles strategy, and cooperated with AutoNavi Maps and iFlytek to promote the construction of intelligent networked vehicle platforms. In addition, in order to standardize and guide the closed-field testing of autonomous driving and promote the development of autonomous driving technology, intelligent networked demonstration bases have been built in many places. At the same time, many places have issued test licenses to autonomous driving companies, and the industry has accelerated. As of 2018, the national intelligent networked vehicle test demonstration area includes 10 national demonstration areas and 14 local demonstration areas.

As of 2018, the national intelligent connected vehicle demonstration base

According to incomplete statistics, nearly 200 autonomous driving road test licenses have been issued in China. Baidu has won 100 of them, making it the leader. On July 1 this year, the Beijing Autonomous Driving Test Management Joint Group officially issued the first batch of T4-level autonomous driving test licenses. Baidu won all the five licenses with the highest technical content.

4. Challenges and opportunities facing China’s Internet of Vehicles industry

Intelligent connected vehicles are no longer just a means of transportation. On the one hand, they involve innovative technologies related to the car itself, such as environmental perception, intelligent decision-making, and collaborative control. On the other hand, they also involve information interaction between cars, cars and roads, and cars and people.

From a policy perspective, the international community has already identified intelligent connected vehicles as an important aspect of the application of "Internet+" and artificial intelligence technologies in the real economy, and has also identified them as one of the key transformation directions for the automotive industry.

While rushing to develop smart connected vehicles and deploying driverless technology, traditional car companies and Internet giants need to see clearly the challenges and opportunities facing the industry development. China's current advantages in developing smart connected vehicles are: a good communication technology foundation and institutional advantages to promote major strategies. However, the parts industry related to smart cars still lacks a technical foundation.

1. Intelligent connected vehicles have been included in " Made in China 2025", which has shifted from focusing on the development of new energy vehicles to promoting the development of intelligent connected vehicles.

"Made in China 2025" is also the action program for the first ten years of my country's implementation of the manufacturing power strategy. It clearly states that we must improve innovation capabilities and implement intelligent manufacturing, including in the automotive field. This also means that the Chinese market is ready for the advent of the era of fully connected vehicles. Enterprises engaged in research or manufacturing in this field will receive policy support, and they will also become market leaders in China and even the global automotive industry.

2. National needs.

China is facing pressure from carbon dioxide , congestion, and the continued increase in the number of deaths in traffic accidents. So from the perspective of market demand, the call for supply-side changes is growing.

3. Significant social and market demands.

According to the 2016 Intelligent Connected Vehicle Consumer Survey, more than 75% of Chinese car buyers are willing to increase their investment in safety features, and 60% are willing to increase their budget for vehicle management functions such as usage status monitoring, vehicle diagnostics and accident data recording.

4. China is establishing a national intelligent connected innovation center.

There is no unified standard for intelligent connected vehicles in the world, and China has a special travel situation, all of which require China to have its own intelligent connected vehicle standards in the future. my country has successively issued a series of guiding documents, including the medium- and long-term development plan for the automobile industry, the intelligent connected vehicle technology roadmap, and the action plan for the development of the Internet of Vehicles and 5G, which have created a good policy environment for the development of intelligent connected vehicles.

However, opportunities and challenges coexist. While seeing the opportunities, we should also face these challenges:

The first challenge is that cars must be digitalized, break through and master core technologies. Companies must have their own software development and training platforms, as well as artificial intelligence systems based on deep learning . Only in this way can they gradually master advanced intelligent network technologies.

The second biggest challenge is that our foundation is not solid, or even lacking. Enterprises must continue to consolidate the four foundations of intelligent connected vehicles: control and perception hardware, core software, communications and the Internet, and cloud and intelligent service platforms.

The third challenge is to rely on and increase the driving force of scientific and technological innovation, especially in core AI technology and chips.

Fourth, we need to explore and create disruptive innovations with Chinese characteristics. We hope to solve the problem of efficient urban mobility through SVSC (Smart-Shared Vehicle for Smart City), and use L4 technology to achieve the guidance of "people looking for cars + cars looking for people + cars looking for parking".