China Becomes Innovation Engine for Global Automakers
Synopsis
Key Highlights China’s legacy automakers are out for their cash, offering up access to vehicle development on the world’s largest auto market in exchange for continued expansion. GM, VW and Renault are continuing to…
Key Highlights
- China’s legacy automakers are out for their cash, offering up access to vehicle development on the world’s largest auto market in exchange for continued expansion.
- GM, VW and Renault are continuing to lean on Chinese Engineering teams for global models.
- China Speed Automotive is assisting legacy automakers to produce EVs and software faster.
China Legacy Automakers Innovation is reshaping the automotive industry around the world as automotive companies, including General Motors, Volkswagen and Renault increasingly offload vehicle research and development to China. Given the growth of Chinese brands in Australia, from BYD to GWM to Chery and MG, the move could bring more China-developed technologies to models around the world for buyers Down Under.
In China, General Motors recently sold over 10,000 of its Buick Electra E7 cars in the vehicle’s first month on sale. Although the Buick marque is very American, the car was entirely engineered at the Shanghai-based SAIC-GM’s Pan Asia Technical Automotive Centre (PATAC). GM has requested the Chinese unit of electromobility to export the Electra E7 in South Korea and that its own electric architecture here is used in Cadillac’s next-gen Optiq
China Increasingly the Centre of Global Carmakers’ R&D
Local engineering teams at GM, Volkswagen and Renault are increasingly working as an R&D hub for their parent companies in China.
The Buick ElectraE7 is built on the Xiao Yao platform. The platform includes a 900-volt supercharging system, as well as powertrain and fuel-efficiency technology that GM models developed in Detroit lack.
Renault engineered the Twingo E-Tech at its technology centre in Shanghai for Europe, while Volkswagen’s AUDI brand has also opened a new autonomous R&D base in China. Despite the relatively weaker sales at home, Hyundai is also pouring money into establishing China as an R&D and export hub.
China-Developed Technology Expands Globally
Chinese EV ingenuity 2026, they said, seems increasingly tailor-made for world markets instead of being China-only focused.
Two years ago, only 12% of German automotive R&D in China was being performed for local and global markets, but that share has increased to 33%, according to the German Chamber of Commerce in China.
Audi has developed the new technology, and a Chinese version of it will underpin new AUDI brand e-cars, but conventional Audi four-ring models will continue to be powered by German-developed technology. Renault also trumpeted work on the Twingo E-Tech, completed in just 21 months with French engineers working closely alongside their Chinese counterparts.
The legacy automaker China pivot signals the increasing ways manufacturers are leveraging Chinese engineering, software and EV technology as they fast-track vehicles to global markets.
Source: Reuters
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