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Why is the electric car market dominated by China?

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The Chinese companies Xiaomi and Huawei are advancing in the EV or electric vehicle market by relying on data and artificial intelligence technology. Three years ago, the Chinese company Xiaomi first offered to make a battery-powered sports car. Three years later, on March 28, their first electric car is about to be revealed.

Why is the electric car market dominated by China? | The Chinese companies Xiaomi and Huawei are advancing in the EV or electric vehicle market by relying on data and artificial intelligence technology. Three years ago, the Chinese company Xiaomi first offered to make a battery-powered sports car. Three years later, on March 28, their first electric car is about to be revealed.


US and German car manufacturers have to compete with these Chinese companies. The name of the car coming to the market is SU7, which means ‘Speed Ultra’. The car can run to 100 km per hour in just 2.78 seconds. The maximum speed of the car will be 265 km per hour. Once charged, the battery of this car will easily cover a distance of 800 km. The SU7 will cost around 33,000 euros (4 million Bangladeshi taka), which is the same as the Tesla 3 and a third of the price of the Porsche Tecan.

Xiaomi head Lei Jun said, “We don’t want compromises or mediocre products. We want to build a dream car that will rival Tesla and Porsche.”

From smartphones to cars

China has long been the world’s largest producer of electric cars. Such progress in electric transportation is unimaginable, except for companies that did not make such cars before. Xiaomi mainly makes intelligent systems for use in the home, but the company’s reputation in Europe is due to its smartphones. Another Chinese company, Huawei, has entered the world of electric cars from the world of smartphones. From 2021, their electric SUV car called AITO or Aito has also entered the market.

But this trend is not only seen in China. Apple started thinking about making cars 14 years ago. But in February 2024, they announced that they were stopping this plan for the time being. Apple spent a total of 10 billion US dollars on this project.

China’s takeover of the car market

Chinese companies are challenging Germany’s top position in the car market. “China is the top supplier of lithium batteries,” said Bernard Diepenziffen, a member of consulting firm KPMG.

Technology and sales in this sector have seen China’s leading role in all parameters. “Asia’s suppliers are leading the way in this field so far,” Dipenzifen said. It’s not as much of an opportunity as German suppliers see in terms of raw material production or battery production.”

At the Geneva International Motor Show in February, it became clear that China’s automakers are by no means holding back. There was not a single company from Germany, but several from China.

China is bringing a new generation of cars

In China’s car industry, cars are not seen as mere transportation machines. They are looking at all aspects that will be necessary in the future. For example, these companies are also emphasizing on automation or automatic technology, artificial intelligence, environment-friendly transportation and technological development.

That’s what tech companies like Xiaomi and Huawei are trying to do. According to Xiaomi head Lei, “Currently, the car is just like a running data center. The next generation of automated industries will emerge from the connected space.”

The car has been dubbed a ‘living room on wheels’ by Chinese electric car maker NIO.

Data driven future?

“Our mantra for production and future-proof cars is ‘smart’,” said Jürgen Unzer, head of Audi’s China office until January 2024. “For our society, even for Germany, it is very important that we think a little more freely about information management,” he added.

The use of AI is undeniable, admitting Unzer said that attention should also be paid to the vehicle drivers’ data collection.

In 2018, the German government signed a joint statement with China on automated and connected driving. According to the document, both states want to ‘set standards and qualifications for non-discriminatory, multi-purpose information management, information delivery and IT’.

But sharing information is not that easy. According to the EU Commission, several European companies have already complained about receiving information from their Chinese subsidiaries.

Foreign investors have to run data centers in China, which are connected to the parent company’s database through cloud technology.

China’s information and cyber security rules are ‘problematic’ for European industry, says Brussels leadership. Sending information from China outside the country requires permission from the country’s cybersecurity regulator CAC, which oversees all “transmissions of critical information.”

German authorities are also aware of this problem. The country’s digital technology minister Folker Vissing stressed the free flow of information between the two countries during the Sino-German government talks in 2023.

Currently, the EU and China are discussing setting standards for this sector. No consensus has yet been reached on borderless data movement between the two sides.

Source: Deutsche Welle

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