At present, the general direction of this round of automobile industry revolution is clear. In the face of the market increase brought about by the development of the new energy automobile industry, many foreign parts companies have adjusted their strategies in China, and some use their own advantages to seize the opportunity to enter a certain segment and share the market cake; Some actively embrace electrification and intelligence to complete the elephant turn. Bosch's implementation of the "rooted in China, local innovation, continuous investment" strategy is the epitome of all foreign parts enterprises in the Chinese market layout.

"The era of foreign parts companies earning high profits has passed. The competition in the whole parts market is more fierce, which can promote the development of China's auto industry to a high level to a certain extent." Shao Yuanjun, an auto industry analyst, said in an interview with China Auto News.

The reporter learned that compared with the previous era of fuel vehicles, the status of foreign-funded enterprises in the domestic market and the surrounding environment have changed. Foreign-funded parts and components enterprises need to make strategic adjustments in the general direction, but also need to truly implement the product.

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In the era of change and innovation, the Chinese market has great potential

"China is the world's largest auto market, resilient and dynamic. As a multinational company, we need to make full use of our local R&D and production capacity in China. Through continued development in China, Bosch will further strengthen its global competitiveness and lay a solid foundation for leading the future of mobility." Stefan Hartung, Chairman of the Board of Directors of Bosch Group, said.

Such strong confidence stems from the importance of the Chinese market. China is the world's largest automobile market, accounting for about 1/3 of the world's annual vehicle sales, and the output of new energy vehicles has accounted for more than half of the global output for many consecutive years. In fact, many foreign parts companies believe that China has the demand advantage of a large scale market, the supply advantage of a complete industrial system, and is an important production base and a sales market that cannot be missed.

CAI Zheng, general manager of Automotive Division of Texas Instruments (TI) China market, said in an interview with China Automotive News: "China's auto market is moving towards a different era. This is a time of change, a time of innovation."

CAI Zheng's so-called "different era" comes from the development of automobile electrification and intelligent industry. 2022 is an important node in the development of the new energy automobile industry. According to data released by the China Association of Automobile Manufacturers, in 2022, the production and sales of new energy vehicles in China will be 7.058 million and 6.887 million, respectively, up 96.9% and 93.4% year-on-year. In this year, the market share of new energy vehicles reached 25.6%. This marks that the industry has got rid of policy support and entered a new stage of market-oriented development. Based on the development of the new energy vehicle industry in 2022, the entire industry has high expectations for 2023. According to the China Association of Automobile Manufacturers, sales of new energy vehicles in China will reach 9 million in 2023, an increase of 35% year-on-year.

In the context of the growth of China's new energy vehicle market, foreign-funded enterprises see new opportunities brought about by the increase in the market. "The transformational trends in the automotive industry present tremendous opportunities for Qualcomm. We are seeing strong demand for smart connectivity in cars. By 2025, the five-year compound growth rate of global new energy vehicle sales will reach 37%. The need for smart connectivity in cars is very similar to the need for mobile connectivity and mobile computing in smartphones. This is Qualcomm's long-standing technical expertise." Meng Pu, chairman of Qualcomm China, said that just as Qualcomm saw the development momentum of smartphones in China many years ago, China's auto industry is also booming today. With the synchronous development of new energy and intelligent networking trends in the automotive industry, the two trends are superimposed and interactive, accelerating the transformation of the entire automotive industry. Therefore, in the digital cockpit, intelligent driving and even autonomous driving, Qualcomm has a lot to do.

Cao Guangping, an independent researcher of the new energy and intelligent connected automobile industry, pointed out in an interview with a reporter from China Automobile News that after experiencing high growth in the popularity stage of traditional automobiles, China's automobile market is still a market where both additional and replacement users coexist, and old energy vehicles and new energy vehicles coexist. This market has the characteristics of sufficiently open, sufficient policy supply, obvious trend of new technology, low cost of human resources, relatively complete supply chain, huge export volume, and incomplete key core technologies. Therefore, in the next 5 to 10 years, the Chinese market will remain an important market for foreign vehicle enterprises and foreign parts enterprises to invest in.