Intelligent Transportation Policy First to Help Industry Change
As the new energy vehicle industry has risen to a national strategy, smart cars are now seen as the next major turning point for China's automotive sector to achieve "overtaking in the corner." On December 9th, Zuo Shiquan, director of the Institute of Equipment Industry at the CCID Research Institute under the Ministry of Industry and Information Technology, shared insights at the "2017 Sanya Finance International Forum." He revealed that the National Development and Reform Commission is leading the development of a national-level innovation strategy for smart vehicles, involving multiple ministries such as the Ministry of Industry and Information Technology and the Ministry of Science and Technology. This strategic initiative aims to position China as a global leader in smart mobility.
Industry experts believe that most domestic car manufacturers have already launched their own intelligent networking development plans, with some companies conducting self-driving research and demonstrations. Meanwhile, numerous internet and tech firms have also entered the smart car space, achieving early success in technological innovation and industrial layout. However, challenges remain, including weak foundational technologies and insufficient coordination among stakeholders. A strong national strategy is essential to accelerate the growth of China’s smart car industry.
Policy support is playing a key role in driving this transformation. In recent years, smart mobility has become a global focus, with intelligent vehicles considered a crucial part of future smart transportation systems. According to Zuo Shiquan, the initial phase of the smart car innovation strategy will speed up the integration of information technology, communication, and artificial intelligence, setting the direction for China’s smart car development. By 2020, it is expected that level 2+ automated driving will reach around 10%, with long-term goals aiming to make China a global leader in smart car technology.
The current levels of vehicle intelligence range from level 1 (driver assistance) to level 4 (fully autonomous). Meng Wei, deputy director of the National Development and Reform Commission’s Policy Research Office, mentioned that the commission has started drafting the national smart vehicle innovation strategy, outlining clear directions, goals, and paths for future development. These policies aim to serve as a blueprint for China’s smart car industry.
In addition, relevant incentive policies have begun to take shape. On April 6 this year, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology jointly issued the "Mid- and Long-Term Development Plan for the Automotive Industry," highlighting intelligent networked vehicles as a key breakthrough for China to become a leading automotive power. Subsequent policy drafts and guidelines have followed, signaling a strong commitment to the sector.
Experts note that the pace of smart car development is accelerating rapidly. Companies like Tesla are targeting commercialization of fully autonomous driving within three to five years, while Audi has already begun mass production of driverless vehicles. Baidu is also working toward launching unmanned vehicles soon. From a production standpoint, Volkswagen is investing heavily in digital factories and intelligent services.
The rise of autonomous driving is also gaining momentum. Drone technology is seen as a key driver for the smart car industry. Globally, the development of unmanned technology is experiencing a surge, and China is preparing to establish a clear roadmap for its advancement. Baidu, for instance, has positioned autonomous driving as a core part of its future strategy. Recently, JAC delivered dozens of vehicles to Baidu to support high-precision map collection, and both companies plan to launch autonomous driving models by 2019.
Despite the progress, challenges remain. Currently, China has not yet established comprehensive laws and regulations for autonomous driving, which is a common issue globally. However, industry insiders believe that leveraging new technologies and integrating them with smart transportation systems can help overcome these hurdles. Developing big data analysis and transforming traditional automotive services are seen as key directions for the industry.
Another emerging trend is the development of in-vehicle connectivity systems. Young consumers, who make up a significant portion of the market, are increasingly looking for connected features when purchasing a car. To meet this demand, Chinese automakers are partnering with tech companies to develop intelligent networked vehicles. For example, Changan has collaborated with Huawei, Baidu, and others, while SAIC has joined forces with Huawei and China Mobile to advance 5G-based V2X technology.
Alibaba has also made significant moves in this space. It partnered with SAIC to create the Roewe RX5, the first Internet-connected car, and later expanded its collaboration with Zebra Networks and Shenlong Motors. Additionally, Alibaba and Ford announced a strategic partnership to promote smart connectivity, AI, and digital marketing in the automotive sector.
Tencent and GAC have also entered the smart car ecosystem, focusing on car networking, cloud platforms, and big data. Analysts predict that by 2020, over 212 million new vehicles worldwide will be equipped with networked technologies, with a penetration rate approaching 60%. Traditional vehicles without connectivity features may be phased out entirely by 2050.
Overall, the national smart car strategy is seen as a critical complement to broader automotive development plans. While challenges remain, breaking through technological bottlenecks and strengthening collaborative efforts will be vital to ensuring sustainable growth in this fast-evolving industry.
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