Attendees look at a Zhejiang Geely Holding Group Co. Zeekr 009 electric vehicle during a launch event in Hong Kong, China, on Friday, July 19, 2024. Electric vehicle maker Zeekr is considering making cars in European factories linked to its parent, the Chinese auto conglomerate Zhejiang Geely Holding Group Co., to avoid European Union tariffs and further its international expansion. Photographer: Lam Yik/Bloomberg
Beijing: Smart-driving functions have become a must for electric vehicles (EVs) in China, especially when such brands aspire to grow themselves into premium ones, analysts say.
More than 62% of EVs, plug-in hybrids as well as range-extended vehicles sold in the first two months of this year feature advanced driving-assistance systems, according to the China Passenger Car Association.
Smart-driving functions are emerging as one of the major highlights of premium vehicles, said Joel Ying, an analyst specialising in autos and parts, technology and telecoms at Nomura.
“What we see is EVs priced over 200,000 yuan are hard to sell in China if they do not boast smart-driving functions,” Ying said.
“You need to offer such functions in the first place, no matter whether the technology is sound or how it really works,” he said.
Bai Ling, an IT specialist in Beijing, chose an Aito M7 when he replaced his six-year-old Citroen C5 last month.
Bai said he had wanted to trade it up for an Audi but he quickly changed his mind when he was persuaded by his wife to try the Aito vehicle that features Huawei’s smart-driving solutions.
“It is like they are from two completely different ages: when you have tried it, you just cannot resist the temptation to own it,” he said.
The Aito brand’s cumulative sales reached 400,000 units in late July, just 28 months since its first vehicle rolled off the assembly line, said Seres, which co-developed the brand with Huawei.
In July, Seres sold 42,176 EVs, up 508% from the same month last year. Its sales in July helped total deliveries in the first seven months of this year to exceed 243,000 units, marking a 370% surge year-on-year.
The fact that smart driving brings a boost to sales is not limited to Aito. Ying at Nomura said that of the orders for EVs priced above 200,000 yuan, smart-driving versions account for a sizeable proportion.
“Car buyers would like to try something new,” said Ying. “You can tell that smart driving is having a far-reaching effect on the automotive industry.”
“The word ‘premium vehicle’ is now different from what it was 10 or 20 years ago. Looking forward, it will be defined by smart driving and other human-machine interactive functions,” he said.
Xpeng, which is co-developing vehicles with Volkswagen, unveiled a major upgrade to its smart-driving system late July. — China Daily/ANN
