China’s Electric Vehicle Makers Challenge Tesla with Cutting-Edge Features

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In the fierce competition of China’s electric vehicle (EV) market, local automakers are setting themselves apart from Tesla by incorporating advanced technologies and unique features. The emphasis is shifting from driving range to innovative in-car experiences, creating a trend where EVs resemble consumer electronics. As more than 100 new EV models are set to launch in China this year, companies are introducing high-tech features such as in-car projectors, refrigerators, and advanced driver-assist systems to capture consumer attention.

China’s EV manufacturers are leveraging advanced technology to outshine Tesla in the local market. The Aito M9 SUV from Huawei’s Aito brand, for instance, boasts a 32-inch projection screen, collapsible front seats, and an Augmented Reality Head-Up Display (AR HUD) that projects information onto the road. This trend signifies a shift where Chinese consumers prioritize entertainment and cutting-edge tech features over traditional functionalities.

The intense competition in the Chinese EV market has led automakers to diversify their offerings, going beyond traditional driving aspects. Features like in-car projectors, refrigerators, and advanced driver-assist technologies are becoming commonplace. Li Auto’s L9 SUV, equipped with AR HUD and a refrigerator, and Xpeng’s G9 SUV, a leader in driver-assist tech, exemplify this trend. More than a hundred new EV models are expected to hit the market in 2024, intensifying the battle for consumer attention.

Consumer preferences in China are influencing the evolution of EVs into sophisticated tech products. In-vehicle tech features and advanced driver-assist capabilities are gaining prominence, surpassing the innovations seen in previous electric and traditional vehicles. Yiming Wang, an analyst at China Renaissance Securities, highlights that Chinese consumers prioritize advanced tech features, making them a significant factor in the purchasing decision, along with price and maximizing mileage.

While advanced tech features are gaining traction, price and maximizing mileage remain crucial considerations for Chinese consumers. EV manufacturers are adapting to these preferences by offering competitive pricing alongside cutting-edge technology. This balance aims to meet the diverse needs of consumers who seek both technological sophistication and economic feasibility in their EV purchases.

Appotronics, a Shenzhen-based laser display company, sees the rising demand for car tech as a lucrative business opportunity. The company claims to have provided the 32-inch projection screen for Huawei’s Aito M9 SUV. Appotronics anticipates generating “a few hundred million” yuan in revenue from its car tech segment in 2024. The increasing willingness of Chinese consumers to pay a premium for advanced car tech sets the stage for companies like Appotronics to thrive.

The unique dynamics of the Chinese market, characterized by a digital and top-down approach, present challenges and opportunities for both domestic and foreign automakers. Chinese engineers prioritize cockpit design and interior features, reflecting a shift from traditional mechanical considerations. This approach, coupled with a willingness to invest in advanced car tech, has propelled domestic companies like BYD to surpass global giants like Tesla in terms of total car production.

In the past year, driver-assist features have emerged as a competitive edge for EV manufacturers in China. While Tesla’s Autopilot is available for highway driving, the “Full Self Driving” (FSD) feature for city streets is not yet offered in the country. Chinese regulators are gradually allowing more driver-assist features in cities, emphasizing the importance of such technologies. The willingness of consumers to pay for specific advanced driver-assist features is still evolving, with preferences leaning toward safety and navigation-oriented functionalities.

As China’s EV market continues to evolve, the integration of cutting-edge features, consumer-centric innovations, and a focus on price competitiveness will define the success of automakers. The race to capture the growing demand for electric vehicles involves not only addressing traditional driving needs but also providing a holistic and technologically advanced driving experience. With the launch of over 100 new EV models in 2024, the industry is poised for further innovation and competition in the pursuit of consumer satisfaction.