Being at the forefront of automotive electronics, where will the automotive industry head?

At present, the global automotive industry is in a period of great change. The improvement of people's requirements for automobile use has promoted the continuous development of the automotive industry towards intelligence, electrification, and networking. Automotive electronics has become a development focus in the field of automotive technology and an emerging growth point in industrial strategy. The amount of automotive semiconductors installed has become a symbol of automotive electronics. With the continuous growth of global automobile production and the deepening application of automotive electronics technology, the overall scale of the global automotive electronics market will continue to expand.

Global Automotive Electronics Market Trends

The automotive chip industry involves multiple industries. From the perspective of market development, with the development of the automotive industry and the modern electronics industry, global automotive chips have shown a rapid development trend in recent years, and the global market size has increased rapidly. From the data, the global automotive chip market was in a low growth stage from 2012 to 2015, but from 2016 to 2019, the global automotive chip market size moved to a high level. According to data from ICV Tank and IHS Markit, the global automotive chip market size reached US$46.5 billion in 2019, a year-on-year increase of 11%.

The popularity of new energy vehicles, the emergence of vehicle networking, autonomous driving and smart car concepts will rapidly increase the amount of chips installed in each vehicle, thereby rapidly expanding the scale of the automotive chip market. According to data from the Prospective Industry Research Institute, the global automotive chip market will grow to US$77.8 billion by 2026. Among them, my country's automotive industry chain has huge room for development. According to the "2021 China Automotive Electronics Industry Development Outlook" report released by CCID, in 2021, my country's automotive electronics market is expected to exceed 700 billion yuan, and by 2025, it will approach 900 billion yuan.

In addition, from a policy perspective, as my country's national automotive industry strategy continues to upgrade, automotive electronics has become an important part of the automotive industry. Since 2017, the national top-level design policies for automotive electronics have been intensively introduced, and action plans or development strategies have been proposed for emerging industries based on the development of automotive electronics, such as the Internet of Vehicles and smart cars.

In February 2020, the National Development and Reform Commission, the Ministry of Industry and Information Technology and other 11 departments jointly issued the "Intelligent Vehicle Innovation and Development Strategy", proposing to formally elevate the development of intelligent vehicles to the national strategic level. In April 2020, the Ministry of Industry and Information Technology issued the "Key Points for Standardization of Intelligent Connected Vehicles in 2020", pointing out that this year it is necessary to form an intelligent connected vehicle standard system that can support driving assistance and low-level autonomous driving, and establish an intelligent connected vehicle standard formulation and implementation evaluation mechanism.

This series of favorable policies provides good development opportunities for the development of my country's automotive electronics industry. With the implementation of relevant measures, the automotive electronics industry will enter the fast lane of development.

What is also eye-catching is the increased investment of domestic enterprises. my country's own brand automotive chips are gradually emerging, gradually filling the gap in domestic automotive chips. Internet companies led by BAT (Baidu, Alibaba, Tencent), communications companies led by Huawei, and car manufacturing forces such as BYD will become the main force in the development of future automotive electronic technology.

Many well-known car manufacturers gathered in the Automotive Electronics Pavilion

Against this background, the 98th China Electronics Show was grandly held at the Shanghai New International Expo Center from November 2 to 4, 2021. The China Electronics Show Automotive Electronics Pavilion will bring together a number of influential suppliers and brands in the fields of autonomous driving, intelligent networking, testing technology, connection technology, body electronics, automotive materials, etc. to showcase new automotive electronics technologies, new materials, and practical technical solutions. During the period, the number of participating companies reached 100, bringing together well-known domestic and foreign automobile manufacturers.

For example, Shanghai Automotive Industry Corporation Limited, as a leading domestic automobile listed company, strives to grasp the development trend of the industry and accelerate innovation and transformation. It is developing from a traditional manufacturing enterprise to a comprehensive supplier of mobile travel services and products to consumers.

Shanghai Valeo Automotive Electrical Systems Co., Ltd. is the largest and most comprehensive automotive parts manufacturer in China. The company has a strong sales network and its products are supplied to more than 40 OEMs, including SAIC Volkswagen, SAIC GM, FAW-Volkswagen, Beijing Benz, SAIC Motor, Dongfeng Nissan, Geely Auto, SAIC-GM-Wuling, GAC Passenger Cars, Changan Ford, Great Wall Motors, Beijing Hyundai, Dongfeng Yueda Kia, BYD, and BMW.

United Automotive Electronics Co., Ltd. (UAES) effectively integrates local advantages and world-leading technologies to provide domestic automobile manufacturers with high-quality products and services, and provides technical support to meet increasingly stringent regulatory requirements.

Huayu Automotive Systems Co., Ltd., the largest comprehensive auto parts listed company in the domestic A-share market, also participated in it. It is mainly engaged in the research and development, production and sales of independent supply of auto parts. Its main business covers six major business sectors: automotive interior and exterior decoration, functional parts, electronic appliances, metal forming and molds, hot processing, and new energy.

As a national enterprise technology center, Shanghai high-tech enterprise, and Shanghai patent work pilot enterprise, Shanghai Huizhong Automobile Manufacturing Co., Ltd. participated in the exhibition. The company's products cover A0-C-class cars, SUVs, MPVs and other passenger cars and commercial vehicle chassis systems.

Lianchuang Automotive Electronics Co., Ltd. was established on April 12, 2006 and is a wholly-owned subsidiary of SAIC Motor Corporation. The company focuses on the R&D and production of automotive electronics and electrical appliances. It is the main supporting unit for the R&D of automotive electronics and electrical appliances for SAIC's own brands, and is the strategic platform for the development of electronic products and a core component enterprise for SAIC Motor Corporation.

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During the same period, high-quality forums such as the "18th China (Shanghai) Automotive Electronics Conference", "Symposium of Leading Enterprises in the Automotive Electronics Industry Chain", "China (Shanghai) Automotive Cockpit Electronics Technology Development Forum", "China Internet and Automotive Industry Integration Development Forum" and "Automotive Electronics Theme Scene Demonstration and Display" were also held to create an in-depth technical exchange platform for professionals in China's automotive R&D, design, procurement and other departments. Through forward-looking interpretation of automotive industry trends, policy guidance and technology sharing, we will fully tap new needs for industry development and jointly explore new market opportunities.