China's new energy vehicle industry has entered a stage of accelerated development. In a report released by the market research firm IDC in 2020, it is predicted that by 2025, the sales volume of new energy vehicles in China will reach approximately 5.42 million.
The future of this industry is defined by software, but the strength of traditional car companies lies in hardware. To meet the demands of the era of automotive intelligence, traditional car companies are in want of a strong software team to transform their R&D thinking and supply chain ecosystem.
At the same time, Baidu and Xiaomi also announced their entry into the industry. Internet companies have "innate advantages" in the field of new energy vehicles, with artificial intelligence, big data, and the Internet of Things all in their wheelhouse.
Nevertheless, the shortcoming of Internet companies is obvious: the lack of automotive supply chain management and large-scale manufacturing experience. Therefore, Huawei and Tencent have chosen a different path: to provide digital solutions for traditional car companies as tier one suppliers.
As the market continues to expand, the gaps among companies widen, the competitive landscape will gradually become clearer.
