European and U.S. Tier 1 China business: Partnerships with emerging EV automakers

Accelerating the development of autonomous driving, connected cars, and smart transportation



 This report presents a summary of the automotive business trends of Electric (electrification), Connected, and Autonomous in China among Western Tier 1 suppliers. (This report is based on information gathered during the May 2018 to June 2019 timeframe)

 In China, the automotive industry is becoming more technologically advanced in areas such as new energy vehicles (NEVs), autonomous driving, and connected cars. The Chinese government has introduced a credit system for the average fuel economy of vehicles manufactured in China from 2019 and policies to promote the sales of NEVs. Under the NEV subsidy policy introduced in June 2018, the longer the EV range, the higher the subsidy, and it was decided that EVs with a range of less than 150 km would be excluded from the subsidy. The subsidies are scheduled to be discontinued in 2021. With regards to connected cars, following the cities of Shanghai, Zhejiang, Hubei, Beijing, and Hebei, in 2018 the city of Guangdong became a model development zone, a core element of the “Chinese Manufacturing 2025” initiative, with plans to gradually deploy 5G communication technology. In addition, the actual road testing of connected cars and autonomous driving has begun in various parts of China.

 In the midst of this business climate, Tier 1 suppliers from Europe and the U.S. are expanding the supply of components to not only major OEMs but also emerging EV automakers, while promoting the construction of new plants for the manufacturing of products such as batteries, electric drives and intelligent components and the expansion of existing plants. In addition, Western Tier 1 suppliers are promoting joint development with IT companies such as Huawei, Tencent and Baidu in areas such as autonomous driving, connected cars, and intelligent mobility.


Automotive business trends in China such as electrification, autonomous driving, and connected cars among Western Tier 1 suppliers (excerpt)

Supplier Business content
Bosch ・ Development of autonomous driving technologies with FAW Car Co., Ltd.
・ Providing electric brakes, sensors, and autonomous driving components to NIO
・ Partnership with Zhejiang Dianka Auto Technology (DEARCC) on the supply of EV components, and solutions such as smart mobility systems
・ Strategic alliance with Huawei for the joint development of IoT solutions
・ Investment in AutoAI for the development of IoV solutions
・ Construction of a new plant in Wuxi to manufacture 48V automotive batteries
・ Established new plant in Wuhu for infotainment products
Continental ・ Opened a joint R&D center with SAIC-GM-Wuling Automobile for chassis and safety systems
・ Development of parts with CHJ Automotive and NIO to optimize the interior vibration and noise levels of EVs
・ Production of fluid solutions for NEVs at new hose plant in Qingdao
・ Construction of a powertrain components plant in Wuhu
・ Expanding the Changshu Plant to manufacture products such as sensors, actuators, and fuel system components
・ Launched the Chongqing R&D center to develop future mobility-related technologies
ZF ・ Suppling jointly developed EPS and MSG to Geely Automobile
・ Construction of a new plant in Hangzhou for the manufacturing of NEV axles and electric drive components
・ Volume production of the ZF coPILOT intelligent ADAS system in 2021
Aptiv ・ Establishment of a new development center in Shanghai to develop and commercialize L4 autonomous driving technologies
・ 5G V2E Research Institute established in partnership with China Telecom in Suzhou
・ Strategic partnership with Dongfeng Trucks, jointly developing new fuel systems
Magna ・ Established two joint ventures with BJEV for development and manufacturing
・ Opened R&D center in Suzhou, developing mechatronics products


Related reports:
Top 30 global supplier rankings for FY 2018 (Jul. 2019)
Auto Shanghai 2019:Emerging Chinese Automakers (May 2019)
NIO:Top Runner among China’s 'Emerging Forces' (Apr. 2019)
SAE China 2018:NEV industry and related policies (Jan. 2019)
Automotive Strategies of Alibaba and Tencent (Dec. 2018)
European and U.S. Tier 1 China business: NEVs, autonomous driving, and connected cars (May 2018)