JAKARTA - China is no longer just seen as a large market for electric vehicles. The country is now an important base for research, software development, artificial intelligence, drive systems, and driver assistance technology for global automotive manufacturers.
China Daily, quoted on Monday, July 13, reported that multinational companies' research and development teams in China have begun to play a bigger role since the early stages of vehicle manufacturing. Manufacturers are no longer just bringing models from abroad and then adapting them for the Chinese market.
Renault is one example. The French carmaker opened a new research and development office in Hangzhou, Zhejiang Province, in June.
The facility is part of the Advanced China Development Center established in Shanghai in 2024 to develop electric vehicles for the European market.
The Hangzhou office focuses on software, artificial intelligence, and user experience. The Shanghai facility handles hardware, drive systems, and vehicle engineering in a holistic manner.
Renault said the division of duties at the two locations was designed to integrate software and hardware for global vehicle programs.
Renault's team in China was also involved in the development of the Twingo E-Tech Electric, a compact electric car for the European market. The project was completed in 22 months with the support of Chinese partners.
Senior researcher at the China Automotive Strategy and Policy Research Center, Ma Sheng, said multinational automotive manufacturers are now developing models based on road conditions, user habits, and rules in China from the early stages.
Volkswagen Group China is also deepening the development of local technology. The company started producing the first vehicle using China Electronic Architecture.
Vehicle electronic architecture is a system that connects hardware, software, and various digital functions of a car.
The technology was developed jointly with China's Cariad, XPeng, and other local partners. The system was first used on the ID. UNYX 07 electric sedan.
The architecture supports an AI-based smart cockpit, a driver assistance system tailored for China, as well as software updates over the internet without having to bring the vehicle to a workshop.
Volkswagen said the project demonstrated the capabilities of its local team from concept, engineering, testing, to mass production.
The Executive Director of the German Chamber of Commerce in North China, Oliver Oehms, said the flow of knowledge in the automotive industry was no longer moving in one direction as more research activities were carried out in China.
SAIC-GM also introduced the Buick Xiao Yao Super Architecture for Electra, the company's new energy vehicle sub-brand in China. The platform supports various drive systems and body shapes, while strengthening battery technology, smart driving systems, and smart cockpits.
Its development is supported by the Pan Asia Technical Automotive Center in Shanghai, a design and engineering facility built by GM with SAIC Motor.
China Daily, citing an industry report released in Shanghai, said the number of Chinese companies on the list of the world's 100 largest automotive suppliers rose to 20.
Their combined share of revenue increased from 14 percent to 17.2 percent. That figure surpassed that of the United States and put China as the third largest regional revenue contributor on the list.
Industry competition is now shifting to batteries, automotive electronics, vehicle software, and electric signal-based chassis control systems.
In 2025, the new energy vehicle segment of China's 100 largest automotive suppliers recorded a 26.9 percent revenue growth. The intensity of research and development in the automotive electronics segment reached 6.8 percent.
The figure shows the growing role of Chinese suppliers in the development of smart electric vehicles, from the provision of components to involvement in platforms and system integration.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
