Intelligent Transportation Policy First to Help Industry Change
With the rise of the new energy vehicle industry to a national strategy, smart cars are emerging 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, revealed at the "2017 Sanya Finance International Forum" that the National Development and Reform Commission is leading the development of a national-level innovation strategy for smart vehicles. This initiative involves multiple ministries, including the Ministry of Industry and Information Technology and the Ministry of Science and Technology, marking a significant step toward a coordinated national approach.
Industry experts believe that most domestic automakers have already introduced their own intelligent networking plans, with some conducting research and demonstrations on self-driving technology. Meanwhile, many internet and tech companies have also entered the smart car space, achieving initial success in both technological development and industrial layout. However, challenges remain, such as weak foundational technologies and insufficient coordination across sectors. A national development strategy is essential to ensure faster and more sustainable growth in this area.
Policy support plays a crucial role in driving industrial transformation. In recent years, smart transportation has become a global focus, with smart vehicles seen as a key component of future intelligent traffic systems. According to Zuo Shiquan, the initial phase of the smart car innovation strategy will accelerate the integration of information communication and artificial intelligence, positioning China’s smart cars as a central direction for development. By 2020, the level of automation above Level 2 is expected to reach around 10%, with long-term goals aiming to make China a global leader in smart car technology.
The current level of automotive intelligence is categorized from Level 1 to Level 4, representing driver-assisted, semi-autonomous, highly automated, and fully autonomous vehicles. 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, aiming to define clear directions, goals, and paths for future development, ensuring it becomes a leading blueprint for China’s smart car industry.
In addition, relevant incentive policies have been gradually implemented. On April 6th, 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 connected vehicles as a key breakthrough for China to become a strong automobile power. Following this, various policies and drafts were released, signaling a growing commitment to the smart car sector.
Experts agree that the development of smart cars is accelerating rapidly. Companies like Tesla are aiming for real-world commercialization of driverless vehicles within three to five years, while Audi has already launched mass-produced self-driving models. Baidu is also pushing forward with its unmanned driving initiatives. From a production standpoint, Volkswagen is building digital factories and enhancing intelligent services, showing the industry’s readiness for the smart era.
As autonomous driving gains momentum, the industry sees drone technology as a key driver of smart car innovation. Globally, the development of unmanned technology is experiencing a surge, prompting policymakers to prepare well for its future. Baidu, for instance, has positioned autonomous driving as a core strategic direction. Recently, JAC delivered vehicles to Baidu for high-precision map collection, and the two companies plan to launch autonomous driving models by 2019.
While regulations for autonomous driving are still being developed, the opportunities and challenges brought by the intelligent era must be addressed through national strategies, leveraging new technologies and integrating them into intelligent transportation systems. This approach is seen as a critical path for the evolution of China’s auto industry.
Another notable trend is the rise of vehicle connectivity as a new avenue for automotive development. With over 80% of young consumers prioritizing connected features when purchasing a car, Chinese automakers are embracing cross-industry collaborations to capture the smart mobility market. Companies like Changan, SAIC, and Alibaba have partnered with tech giants such as Huawei, Baidu, and Tencent to develop smart vehicles equipped with advanced connectivity systems.
Looking ahead, the industry anticipates that by 2020, 60% of new vehicles worldwide will be equipped with networked technologies, with traditional non-connected cars likely to disappear by 2050. While the smart car strategy complements existing automotive development plans, ongoing efforts are needed to address technical gaps, enhance collaborative research, and improve policy frameworks to ensure sustained growth.
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