Trends in Western Tier 1 Suppliers in China (Part 1)
Bosch, Continental, ZF
In 2020, the automotive industry was, to a certain extent, impacted by the global outbreak of the COVID-19 pandemic. In February 2020, China took measures against the outbreak such as undergoing lockdowns in various regions. In the midst of these circumstances, the Chinese government implemented several consumption stimulus measures, such as implementing a new NEV subsidy policy. Additionally, the 「Energy-saving and New Energy Vehicle (NEV) Technology Roadmap 2.0」 initiative announced by the Society of Automotive Engineers of China (SAE-China), aims to reduce carbon emissions, increase intelligentification, promote information transformation in China’s automotive industry, and, in particular, advocates further electrification. By 2035, China aims to have NEVs account for 50% of new vehicle sales, have fuel cell vehicle ownership reach around 1 million vehicles, and convert commercial vehicles to be powered by hydrogen energy.
According to data from the SAE-China, new vehicle sales in China in 2020 saw a year-over-year (y/y) decrease of 1.8% to 25.311 million vehicles (including factory shipments and exports), reflecting a decline over the past three consecutive years. However, NEV sales saw a major y/y growth of 10.9% to 1.367 million vehicles. Meanwhile, Western Tier 1 suppliers are both pursuing profits and actively promoting the 「CASE」 (Connected, Autonomous, Shared, and Electric) technological megatrends. Bosch has partnered with several Chinese companies in automotive intelligence and electrification and continues to invest in research and development for future science and technologies. Continental has partnered with Baidu and provides technical support for the autonomous driving platform 「Apollo」 and is developing unmanned driving technology in Shanghai with EasyMile. ZF is actively engaged in implementing CASE in commercial vehicles with the commercial vehicle manufacturer 「SAIC-Iveco Hongyan Commercial Vehicle (SIH)」.
This report covers the intelligentification, electrification, and autonomous driving trends among Western Tier 1 suppliers Bosch, Continental and ZF in China. (for the period from July 2019 to January 2021)
2020 Chinese market: New vehicle sales down 1.8%, commercial vehicle sales top 5 million units (Feb. 2021)
The Impact of COVID-19 on the Automotive Industry (Nov. 2020)
Autonomous, connectivity and HMI activities of Western suppliers - Part 1 (Oct. 2020)
Autonomous, connectivity and HMI activities of Western suppliers - Part 2 (Oct. 2020)