Image Credit: People's Daily
China’s vehicle software market, valued at over 65 billion yuan (approximately 9.2 billion U.S. dollars), now constitutes 30 percent of the nation’s total software market, as highlighted in a report released on Friday. The report, detailing the development of new quality productive forces within China’s automobile industry, was jointly published by the China Automotive Engineering Research Institute Co., Ltd and the China Economic Information Service. It was unveiled at the Automobile New Quality Productive Force Development Forum held in Chongqing Municipality.
According to Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, the car industry is transitioning from its first phase of electrification to a new phase emphasising intelligent technologies. He noted that this shift focuses on software, operating systems, and automotive chips as fundamental components for enhancing vehicle performance. Xu emphasised that vehicle software plays a crucial role in managing a car’s functions, from its facilities to driving and communication capabilities.
The report also indicated a growing localisation rate in automotive chips, bolstered by advancements from companies like Huawei. The localisation rate of power semiconductors has reportedly increased to between 15 percent and 20 percent, reflecting significant progress in domestic chip development.
Furthermore, the automobile industry stands as a cornerstone of China’s economy, with the gross output from the entire automotive industrial chain contributing 10 percent to the country’s gross domestic product. This underscores the importance of the sector not only in terms of technology but also as a vital economic driver for China. As the industry embraces intelligent technologies, the implications for future automotive innovation appear promising.