tThe following article is an excerpt from Steve Fowler's DriveSmart fact sheet. To receive the email directly to your inbox every Monday, simply enter your email address in the box above.
Every auto show has its themes, themes that often revolve around the latest technology, geopolitical issues and the financial climate.
At this year's China Auto Show, held at the massive China International Expo Center in Beijing (which alternates with Shanghai), the talk was about AI and robotics. And robotics, of course, also includes the technology that powers self-driving cars.
This show is on another level in terms of scale. Its 380,000 square meters (according to the international measurement of surface area) are equivalent to about 53 normal-sized football fields, which makes it difficult to cover in one day, but I did the best I could.
In addition to looking at the cars, it's a good time to catch up with the people who run the car companies. I took the opportunity to ask why China matters to you and me as car buyers, and what effect it has on established automakers.
José Muñoz is the president and CEO of Hyundai and he was announcing a big push for his brand in China. Hyundai was once big in China, but not anymore. Muñoz's plan is to make Hyundai great again. But does what you see and learn, and what Hyundai does in China, benefit businesses and customers around the world?
“When you come to China and just spend time, this is a different market,” Muñoz told me. “It is a market that has grown a lot, where young consumers are gaining access to many new technologies and then connecting with the entire world, with many of the different ecosystems.
“Then there are technologies that are here that are not in other markets and behaviors that are here that are different from other markets. Then you can develop autonomous driving systems that are very suitable for those markets, let's call it the US or Europe. Now you come to China and there are more people with different priorities, with different goals on that particular day. Then you just walk and you see people walking differently, and then you face people who are running, other people who are cycling, other people who are walking. in automobiles, and it is much more. complex.
“Certainly, when you have an autonomous driving system that works successfully here, that system is productively easy to adapt to other markets, but not the other way around. This is very, very unique.
“In addition, the Chinese consumer is very demanding with software and technology because what other people do in other countries in their homes, in this country many people do in their cars.
“Cars are a space where people spend time and work, and where they want to have good quality video or, say, series or music online, or relax or whatever. So that makes that space so special: it's not just a space to get around, it's a space to live.
“These are all elements that help us extrapolate.”
The speed of development in China is also changing the way Hyundai and other auto companies work. “When certain technologies are used in China, people are used to it being immediate,” Muñoz said. “In other countries, people didn't have the technology; now they do. If you're slow, that's fine. But in this market, you need to be fast.”
The ability of Chinese companies to keep costs down also inspires Muñoz, as he explained. “So there are a ton of exportables, but the most important exportable item is affordability. We want more for less as people, right? I want to have access to as much as possible for the least payment. Because China is so competitive, if you can compete in China, you can export it to another market.”
After chatting with Muñoz, I met with Mathias Geisen, head of sales and marketing at the German giant Mercedes-Benz. He echoed many of Muñoz's views, but specifically mentioned how autonomous driving developments in China are shaping the rest of the automotive world.
“China has very demanding customers, especially when it comes to entertainment and technology itself,” Geisen said. “The customers here in China are definitely younger than those we have in Europe, and what we learn here is something that will also be very present in Europe and the rest of the world, because there may be a demand for Level Two+ here. [autonomous driving]something we all know, but not yet in Europe.
“Of course, this will also happen in Europe, because as soon as people realize that there is superior technology available, they want to have it too.
“It basically accelerates a lot of the things we do. That's why we also have an R&D center here, to make sure we stay on top of things and can continue to innovate. This strong competition here triggers an increasing speed of innovation in what you're doing. So I would say it's beneficial.
“For example, Level Two+. Now we are the only ones able to offer it in combustion engines because it was driven from here with our team, with our local partner Momentum and with NVIDIA; now we do it for the rest of the world.
“So I would say that if you are competitive in China, you are very well prepared for the rest of the world. And when it comes to features like autonomous driving and digitalization, customers here are the most demanding.”
For a very different perspective, my next long-distance walk down a hallway took me to one of China's big players: a corporation called GAC, which stands for Guangzhou Automobile Group. Of its many brands, Aion is the latest to arrive in the UK, and leading the charge as general manager is experienced UK car boss (and dealer) Jon Wakefield.
It's always strange traveling over 5,000 miles to chat to someone 40 miles down the road (we've also met more locally), but Jon was keen to show me around the Aion stand and highlight a couple of other cars that are likely to be heading to the UK with Aion badges, including the S7 plug-in hybrid SUV which is UK-ready, and another SUV, the S600, which to my eyes smells like a Porsche Macan but would cost a fraction of the price.
I asked Wakefield for his views on China and its importance to UK consumers.
“This is where innovation, development and the ability to make cars at a price comes from,” he said. “This is the center of everything.”
Even on the GAC stand, the scale of the organization (and the opportunity for cars to come to the UK) is huge, as Wakefield told me: “The variety of products is a lot for us. Yes, we have to choose the right car for the UK market. And within this sweet shop there are some really good models that are absolutely attractive to the UK consumer.”
“The Aion V is of course the first to arrive, and then there's the S7, which is a hybrid SUV that really caters to the UK's fascination with a tall, proper SUV. “We'll bring it to market next year.
“But it's not just about the shape, feel and fit – it's also about the powertrains. I'm really interested in how we could bring range extender technology to the UK because I think there's a real logic to that. The plug-in hybrid is more ICE and a bit of battery, while the range extender is more battery with a bit of ICE. So it's the next step; it still gives you the confidence to go on a long journey.”
With the proliferation of new brands on show in Beijing, including others heading to the UK, Wakefield is aware of the need to focus.
“I think one of the observations I would make now – and I think it's becoming quite evident in the Chinese market – is that there are too many brands, too many lines of cars, and the confusion that that creates for the consumer is obvious. But also, in terms of how you build trust and reputation of a brand, it's very complex. There are a lot of words used about size, safety and so on. People have to make their own decisions.
“To me, our direction is to stick to one brand and then incorporate the other car lines to fit that brand.”
What is clear here is that there are definite areas in which China is working hard to lead. I just had a conversation with Chery president Yin Tongyue about his brand's AiMoga humanoid robots, designed to support us humans and with a lot to learn from the artificial intelligence and autonomous technologies that their cars are already using. He's also clearly keeping an eye on what Elon Musk and Tesla are doing with robots.
Whatever your opinion of Chinese cars, they are helping to raise standards and bring useful technology to every car, and I think that's a good thing. You may have your own views and, as always, I'd be happy to hear them. Please write to me by hitting the email button below.
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