Lanza, G. (Editor) Hauns, D.; Hochdörffer, J.; Peters, S.; Ruhrmann, S.: State of Automotive Technology in PR China - 2014 Shanghai Lanza, G. (Editor); Hauns, D.; Hochdörffer, J.; Peters, S.; Ruhrmann, S.: State of Automotive Technology in PR China - 2014 Institute of Production Science (wbk) Karlsruhe Institute of Technology (KIT) Global Advanced Manufacturing Institute (GAMI) Leading Edge Cluster Electric Mobility South-West Contents Foreword 4 Core Findings and Implications 5 1. Initial Situation and Ambition 6 Map of China 2. Current State of the Chinese Automotive Industry 8 2.1 Current State of the Chinese Automotive Market 8 2.2 Differences between Global and Local Players 14 2.3 An Overview of the Current Status of Joint Ventures 24 2.4 Production Methods 32 3. Research Capacities in China 40 4. Development Focus Areas of the Automotive Sector 50 4.1 Comfort and Safety 50 4.1.1 Advanced Driver Assistance Systems 53 4.1.2 Connectivity and Intermodality 57 4.2 Sustainability 60 4.2.1 Development of Alternative Drives 61 4.2.2 Development of New Lightweight Materials 64 5. Geographical Structure 68 5.1 Industrial Cluster 68 5.2 Geographical Development 73 6. Summary 76 List of References 78 List of Figures 93 List of Abbreviations 94 Edition Notice 96 2 3 Foreword Core Findings and Implications . China’s market plays a decisive role in the . A Chinese lean culture is still in the initial future of the automotive industry. China rose to stage; therefore further extensive training and become the largest automobile manufacturer education opportunities are indispensable. and the largest sales market worldwide. China records a significant increase in patent . The Chinese government plays a very applications. Chinese universities and research important role in promoting the industry. China facilities gain growing attention. intends to jump the internal combustion engine technology and to establish one Chinese . China’s market for safety systems will continue company among the ten largest car to grow due to rising safety expectations as manufacturers in the world by 2016. well as the growing premium market. While market growth offers significant . ADAS systems and Telematics are rapidly opportunities, the automotive industry also becoming the norm for Chinese manufacturers faces important challenges. but international companies are still the Chinese automotive manufacturers have Is China’s Automotive Industry on the run to repeat technological leaders. developed rapidly in the recent decade, mostly what Japanese OEM showed decades ago? Will . The Chinese automotive market is benefited from joint ventures with global OEMs as German premium brands be competed? Will China characterized by a complex structure of state- . New mobility concepts such as car sharing are wwell as the establishment of global auto supplier play an important role in terms of innovation? owned manufacturers, relatively independent at an initial stage but feature great potential. network inside China. Their manufacturing Probably, nobody will be able to answer these domestic manufacturers and joint ventures. capabilities have been enhanced impressively, and questions comprehensivelly. However, keeping an . All manufacturers invest a large amount in yet their vehicle development capabilities are eye on the market as well as on China’s emerging . Vehicles of Chinese manufacturers are still ecofriendly, alternative drive technologies. limited, which is understandable due to the short research centers is of overwhelming importance. unsuitable for the triad markets (EU, US, Especially, plug-in hybrid vehicles gain history of passenger vehicle development in China. The following survey aims at giving a concisely Japan), so far. Qoros with its Qoros 3 Sedan importance in China. Particularly in the areas of powertrain (engines and glance on the current state of the automotive which was persuading at the Euro NCAP crash automatic transmissions), vehicle design industry in China. test seems to have the best chances on . It remains doubtful whether all-electric vehicles (crashworthiness, handling and comfort), and western markets. will find a receptive market in the near future. system-level optimal vehicle integration, Chinese There are still problems which have to be OEMs lack core compettence, knowledge base and . The Chinese government is starting to consider solved such as the lack of charging stations. knowhow. a relaxation of joint venture regulation since no Chinese manufacturer has established an own . China becomes a major market for lightweight powerful brand, so far. construction but it will be driven by foreign manufacturers in the beginning. Jun Ni, PHD Prof. Steven Peters, Dr.-Ing. China’s days as a low-wage country are Shien-Ming (Sam) Wu Collegiate Professor of Chief Engineer „Production Systems“ counted and a high-tech region is supposed to . Western China holds enormous potential for Manufacturing Science Institute of Production Science (wbk) emerge. Moreover, qualified labor becomes automotive manufacturers as incomes rise. Professor of Mechanical Engineering Karlsruhe Institute of Technology (KIT) scarce. Therefore, China’s automotive industry Cities such as Chongqing, Chengdu, or Wuhan University of Michigan, Ann Arbor, MI, USA Karlsruhe, Germany pushes automation. are supposed to become automotive hubs. 4 5 Initial Situation and Ambition Initial Situation and Ambition Due to stagnating demand for vehicles in most largest automobile manufacturer in the world Which research capacities exist and how mature markets in the face of the global recession, with almost 7.5 million passenger cars and overall are they utilized by automotive automakers around the world are pinning their 10.3 million manufactured automobiles. At the manufacturers in China? hopes on rising demands in emerging nations same time, China replaced the United States of . Which are the focus development areas in Highway Shanghai such as the so-called BRIC markets (Brazil, America as the largest sales market and China’s automotive sector? Russia, India, and China). maintained its leading position. Not only the . What does the geographical structure of absolute figures but also the speed with which the China’s automotive industry look like and With increasing purchasing power in the emerging market grows is impressive. China’s rapidly how will it change in the future? nations more and more people are able to expanding automotive industry has outpaced the accomplish their desires to own a car. In this case, nation’s gross domestic product (GDP) growth the existing infrastructure will rapidly reach to or rates in recent years. Furthermore, no country in even surpass its limit. However, in industrial the world has more foreign OEMs and suppliers countries the new generation signals a greater localized within its borders. [BBVA Research willingness to share a car with others. They favor (2012)] high flexibility, spontaneity, no traffic jams, and no parking issues over owning their own car. Despite the achieved strong position, the development has not been terminated, yet. China’s This is just a small fraction of the issues the automotive market still features the highest automotive industry has to face to satisfy demands growth potential in the world. According to the of tomorrow’s users. Similarly, it is equally latest forecasts, the unit sales of automobiles will important that automotive manufacturers and their reach the mark of 20 million cars in 2015, following suppliers continuously improve their products. The 15.5 million cars in the year 2012 in China trend is towards sustainability, a higher level of [Automobil Produktion (2013)]. comfort and safety, lightweight construction, and integration of more advanced driver Therefore, the following issues are focused on in assistance systems (ADAS). The aim is to this research study: produce cars more economically and at less cost, to scale back consumption and reduce emission . What is the current situation on the levels as well as to support the driver to increase Chinese automotive market? safety. The latter may result in (partially) . Which domestic manufacturers act on the autonomous driving. Chinese automotive market and how successfully do they perform? Nowadays, it becomes more and more apparent . How does the partner constellation of that especially China’s market plays a decisive foreign and domestic manufacturers look role in the future of the automotive industry. like in China? The Chinese automotive market has become one . Which production methods are common in of the most important markets over the last years, China? not only among the BRIC markets but also in the whole world. In 2009, China rose to become the 6 7 Current State Current State of the Chinese Automotive Industry 2.1 Current State of the Chinese Automotive breaks new records. As an important sales market to the situation in Germany, for example, the Market and manufacturing location, the Chinese market is Chinese government does not consist of several an integral part of the strategies of the parties holding different opinions. The politics of Until the middle of last century there was no European, American and Japanese automotive China take place in a framework of a single-party automotive manufacturing facility in China. The industry. On the one hand China is a very large socialist republic. The leadership of the E-scooter in China first one was built in 1956 in Changchun in the market with its population of almost 1.4 billion Communist Party is enshrined