China’s stronghold on the global automotive market has only been getting tighter over the last few years. Daimler’s China sales comfortably surpassed its US sales for Mercedes-Benz cars in 2018 signalling a new geographic shift in the automotive circuit. Daimler AG became the first premium carmaker to pass the milestone of 600,000 units sold in China within a year. This only adds to the brand’s market leadership in several other markets such as Germany, France, Italy, Switzerland, and Portugal.
The R&D spends have been fuelled by Foreign giants like Ford, Bosch and Volkswagen’s growing investments in China signalling the need for technology partners that can fasten time-to-market. The top 5 automotive R&D spenders in the Chinese automotive space are a mix of domestic and international players like SAIC Motors, BYD Co ltd., Robert Bosch, Great Wall Motors, and Ford Motor Company. These top 5 players account for nearly 43% of the R&D spend. Top spend segments include connected cars, ADAS & autonomous cars, hybrid & electric mobility.