China's Vehicle Software Market Worth 65 Billion Yuan

China's Vehicle Software Market Surges to Over 65 Billion Yuan

China's vehicle software market has reached 65 billion yuan (approximately 9.2 billion USD), marking 30% of China's total software market, a report say.

On September 20th, the Automobile New Quality Productive Force Development Forum was held in China’s Southwest city Chongqing. The report was officially published on the Forum with a title of "Development of New Quality Productive Force in China's Automobile Industry".

Key Findings from the Report

The report revealed that the research and development of China NEV technology is focusing mainly on intelligent technologies now. Xu Haidong, Deputy Chief Engineer of the China Association of Automobile Manufacturers, introduced that the first phase development of the NEV technology focused on electrification. While now, the industry has now entered it’s the second phase, automakers are investing more on enchancing the auto software, operating systems, and car chips.

The Role of Vehicle Software

Nowadays, the vehicle software is acting a major role in managing the entire car, including its facilities, driving, and communication capabilities. So as the automakers now have to possess the capabilities of integrating sophisticated software systems, in order to enhance car’s performance and improve driving experience.

China’s In-house Automotive Chip Manufacturing Capabilities

The report also emphasized another significant change on chip manufacturing. Chinese tech giant Huawei, key automakers like BYD, Changan, Geely, and Chinese NEV new forces NIO, Xpeng, Li Auto are exploring the chip technology, and has already made remarkable progress in chip development.

In 2020, the Chinese self-sufficiency rate of automotive chips was 5%, by 2023, the number rose to 10%, now, we see 10%-20%, reducing the reliance on foreign chips.