European and U.S. Tier 1 China business: NEVs, autonomous driving, and connected cars

Alliances with Chinese IT companies and emerging EV automakers



Bosch's booth at the Beijing Motor Show 2018

This report summarizes the business trends of Electric, Autonomous, and Connected taking place among European and U.S. Tier 1 suppliers in China. (During the 15 month period from January 2017 to the beginning of April 2018)

In China, there is considerable increased activity related to trends such as new energy vehicles (NEVs), autonomous driving, and connected cars. In 2017, the Chinese government set forth its policies to regulate the entry of companies into the NEV business and presented mid- to long-term strategies for related areas such as NEVs and connected cars with the release of its "Mid- to long-term development plan for the automobile industry". In March 2018, the government announced the key points regarding the standardization of work related to NEVs and connected cars for 2018.

Against this backdrop, European and U.S. Tier 1 suppliers in China are strengthening their manufacturing footprint and development systems, which include joint development in fields such as autonomous driving, connected cars, and intelligent mobility in cooperation with IT companies such as Baidu, AutoNavi, NavInfo, Unicom, China Unicom, and Huawei. They also plan to establish joint ventures to partner with local parts suppliers to manufacture NEV-related products such as battery systems and electric drive systems. In addition to the major OEMs, the Tier 1 suppliers will develop and supply products such as EV parts, electric drive systems, autonomous driving technologies, and intelligent transportation systems to emerging EV automakers such as Aiways, Xpeng/Xiaopeng, and NIO.


Tier 1 supplier activity relating to electric, autonomous, and connected

Main businesses
Bosch • Started construction of new Nanjing plant to manufacture its iBooster for HVs and EVs
• Plans to produce lithium-ion batteries for HVs at its existing plant
• Partnered with Baidu, AutoNavi, and NavInfo to develop high-precision street maps for automated driving
• Supplies BAIC Motor (BAIC) with key parts for autonomous driving and advanced driver-assistance system (ADAS) technologies
• Partnered with Aiways in technology areas such as EV systems and autonomous driving
• Partnered with Xpeng Motors in the area of autonomous driving
Continental • Started construction of its Chongqing R&D center for the development of NEV-related products, etc.
• Alliance with Baidu for autonomous driving, connected cars, etc.
• Formed a joint venture with China Unicom Smart Connection to operate as a provider of Intelligent Transportation Systems (ITS) solutions, products and services.
• Formed a JV with CITC (Sichuan Chengfei Integration Technology Co., Ltd.) to develop and produce 48V battery systems
• Partnered with FAW Jiefang Auto to launch a new platform for operating telematics services for commercial vehicles
• Partnering with NIO on EVs and autonomous driving, etc.
ZF • Chery's production vehicle with Level 3 automation capability will be equipped with ZF's ProAI processor
• Partnered with Baidu on autonomous driving, connected cars, etc.
• Formed a JV with Beijing Hainachuan Automotive Parts for the manufacture of EV parts
Magna • Co-developing a next-generation smart EV architecture with BAIC
• Partnered with NIO to supply electric drive system parts, etc.
• Formed a JV with HUAYU to manufacture e-drive systems for EVs


Related reports:
  Emerging Chinese EV makers: Rapid development with IT investment and partnerships (Apr. 2018)
  2018 China Market Forecast: 29.98 million units; automakers cautious (Mar. 2018)
  Chinese Battery Manufacturer Response to EV Growth (Mar. 2018)
  The Chinese market in 2017: 3% increase to 28.879 million vehicles, SUVs exceed 10 million vehicles (Mar. 2018)
  The current situation of China’s NEV market (Dec. 2017)

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