HOME > Blog > Truck news

From Legacy to Leadership: Unpacking China's Automotive Renaissance in the Era of Smart Electrification

08 Jun 2025

From Legacy to Leadership: Unpacking China's Automotive Renaissance in the Era of Smart Electrification

For decades, the global automotive landscape was dominated by the established giants of Europe, America, Japan, and Korea. Their engineering prowess, particularly in the realm of internal combustion engines and sophisticated mechanical platforms, created an undeniable perception of superiority. The very thought of a "Chinese car" often conjured images of imitation or basic functionality. This historical narrative, while rooted in a past reality, is now undergoing a seismic shift.

In 2024, China's new energy vehicle (NEV) sales surged past the 10 million mark, a testament to a profound transformation that extends far beyond mere production volume. This milestone signals a fundamental reorientation of automotive core competencies, an acceleration of disruption that has forced a paradigm shift in automaker philosophy: from horsepower to computing power, from manufacturing focus to technological leadership. The question is no longer if China will enter the global automotive elite, but when and how. The next two decades, shaped by electrification and intelligent technologies, represent an unprecedented window of opportunity for Chinese automotive enterprises to redefine the industry's top tier.

To truly grasp the magnitude of this evolution, we delve into the strategic insights of a leading player: Changan Automobile. Through a candid conversation with their executive, we explore the intricate details of their technological pivot, exemplified by their groundbreaking SDA (Software Defined Architecture) platform, and assess the tangible impact on product development and market positioning.

The European Crucible: Navigating a Shifting Global Automotive Landscape

The European market, as the birthplace of the automobile, holds immense symbolic and strategic significance. Its discerning consumers and entrenched legacy brands present a formidable challenge for any newcomer. Yet, the recent sighting of a Changan G318 on the streets of Paris during the Olympic Games, captured by local media and sparking widespread online discussion, signals a burgeoning curiosity and growing recognition of Chinese automotive design and engineering. "Wow, have Chinese cars become this good?" – this sentiment, echoed by the public, encapsulates the dawning realization of a new competitive reality.

This paradigm shift, as articulated by industry leaders, suggests that while the past belonged to established powers, the future is an open playing field. The automotive market, inherently driven by competition, is undergoing a profound structural reset. My personal assessment is that China's automotive industry is already in a state of co-leadership with global counterparts in at least three critical domains, and in some areas, is demonstrably leading:

  1. New Energy Vehicles (NEVs): China's undeniable dominance in EV battery technology, motor development, and integrated powertrain solutions places it at the forefront of the NEV revolution.

  2. Intelligent Technologies: This encompasses advanced driver-assistance systems (ADAS), autonomous driving, smart cockpits, and vehicle-to-everything (V2X) communication, where China is rapidly setting new benchmarks.

  3. Styling and Design: Perhaps the most unexpected, yet equally significant, area of leadership. The sophisticated, often avant-garde, designs now emerging from Chinese studios are capturing global attention, challenging traditional aesthetic norms. The G318's reception in Paris is a prime example.

Beyond these specific technological advancements, a fundamental shift towards technology-driven innovation is propelling Chinese automakers forward. The ultimate test of this commitment lies in product excellence and global market acceptance. The world's annual new vehicle sales, currently around 80-90 million units, have stagnated for years, influenced by economic development and market maturity. However, China's automotive industry is now injecting a "new choice" for consumers worldwide, a disruptive force that is poised to fundamentally reshuffle the global industry's hierarchy. This disruption, fueled by evolving core elements, presents an unparalleled opportunity for Chinese brands. We internally hold a strong conviction: the future top 10 global automakers will undoubtedly feature multiple Chinese names. While I cannot predict specific rankings, I am confident that Changan will strive to secure a position among the world's top ten. This unwavering commitment to offering global consumers new automotive choices is a near certainty.

Our relentless pursuit of technological excellence is underpinned by a resolute investment strategy: we mandate a minimum of 5% of our annual sales revenue be allocated to R&D, regardless of market conditions or short-term financial pressures. This is not merely a target; it is a fundamental management principle, a strategic imperative. Even during periods of potential financial strain or loss, this commitment remains inviolable. We recognize that sustained technical innovation is the indispensable function that enables us to offer consumers superior products and services, ultimately creating enduring value. Indeed, our R&D investment last year even surpassed this baseline, reaching over 6%. This continuous, technology-driven investment is enabling Chinese automotive companies to deliver increasingly advanced and cutting-edge technologies to global users.

Software-Defined Architectures: The Brains Behind the New Machine

The transformation of the automotive industry from hardware-centric to software-driven is epitomized by Changan's SDA (Software Defined Architecture) intelligent technology architecture. First introduced at the 2021 Changan Tech Ecosystem Conference, the SDA platform culminated in the launch of the Changan Qiyuan E07 in 2024 – Changan's first mass-produced "digital car." Understanding SDA is crucial to comprehending the profound changes it brings to vehicle design and user experience.

At its core, SDA embodies the "software-defined vehicle" philosophy. Changan's SDA is specifically termed a Software-Driven Architecture. It is meticulously structured into six distinct layers, from L1 to L6:

This multi-layered SDA, as a software-driven architecture, ultimately transforms the vehicle in three fundamental ways:

  1. Human-like Intelligence: The car will possess a "brain," "cerebellum," "neural network," "limbs," "eyes," and "ears," mimicking human biological systems for perception, decision-making, and execution.

  2. Human-level Wisdom: Equipped with a "smart brain," the vehicle gains the ability to learn and evolve.

  3. Superhuman Capabilities: Perhaps the most profound concept, vehicles will transcend human limitations, ultimately becoming "automotive robots." This vision is the ultimate goal of the SDA.

The physical form of the vehicle will continue to evolve, but its "soul" – its neural network and intelligence – will be the core of its continuous evolution. This necessitates ever-increasing computational power, driving the demand for more powerful chips (from 100 TOPS to 200, 500, and eventually 1000 TOPS). Changan's next-generation SDA 2.0, for instance, sets a standard computing power of 500 TOPS for its vehicles, even entry-level models.

Visually, imagine the vehicle chassis as a stable platform upon which "brains" and "neural networks" are mounted. These are represented by four key "boxes" on top of the chassis. The central box, emblazoned with the Changan logo, serves as the primary "brain," handling all core computations. Sensing systems (cameras, radars, etc.) capture environmental and vehicle operating data, convert it into digital signals, and feed it into this central brain. The brain then processes these signals and transmits commands via an Ethernet-based communication network (the "nerves") to smaller "cerebellum-like" regional controllers. These regional controllers then translate the commands into actions, sending signals to the mechanical execution systems (e.g., brakes, steering). This fundamentally augments traditional vehicles with critical "brain" and "nervous system" components, along with "sensory organs," transforming them from mere mechanical tools into intelligent, human-like entities. This is the core vision of SDA: cars evolving into automotive robots.

The peripheral three "boxes" are VIUs (Vehicle Interface Units), or regional controllers. Traditionally, functions like automatic steering or air conditioning were controlled by separate, isolated functional controllers. VIUs consolidate the control of neighboring systems, leading to higher control precision, faster response times, and enhanced execution efficiency and safety. This entire process forms a complete chain: from perception, to central brain computation, to regional controller execution, and finally to mechanical action – mirroring the human sensory and motor response loop.

The Human Element: Reshaping the Automotive Workforce

The transition to software-defined vehicles is not merely a technological shift; it fundamentally reshapes the automotive workforce. The increasing reliance on data as a production resource enables vehicles to become "smarter" with every kilometer driven. This necessitates a dramatic rebalancing of engineering expertise within the company.

At Changan, the proportion of engineers specialized in software and electronics versus those in mechanical hardware has reached an astonishing one-to-one ratio. This figure is highly indicative of the company's profound transformation. Considering Changan's total workforce of approximately 73,000 (including manufacturing, R&D, and production line staff), an astounding 18,000 are dedicated to engineering and technical development. This composition fundamentally diverges from traditional manufacturing enterprises, where the majority of employees are typically production line workers. Changan, by contrast, is rapidly becoming a technology company focused on intelligent, low-carbon mobility, with a significant portion of its human capital dedicated to research and development. This structural change permeates all levels of the organization.

Our two-hour discussion provided extensive insights, only a fraction of which can be shared. However, the revelation of a 1:1 ratio between software/electronics and mechanical engineers within a giant automaker is profoundly impactful. It signifies a rapid metamorphosis from a manufacturing entity to a technology-driven enterprise. The automobile itself is evolving from a traditional mechanical conveyance into an intelligent software terminal.

As articulated by our executive, intelligent electrification represents the critical opportunity for Chinese automotive companies to ascend to the ranks of the world's elite within the next two decades. The adage "fortune favors the prepared" rings true, and China's automotive industry is precisely that prepared entity. While we must avoid insular pride, there is no need for self-deprecation. In traditional domains like mechanical chassis and semiconductors, China continues to relentlessly pursue and bridge gaps. However, in emerging technologies such as electrical/electronic architectures, software, and artificial intelligence, China is increasingly establishing itself as a global leader.

For the people of any nation, achieving technological equity is the prerequisite for pursuing high-quality, affordably priced products, liberating consumers from being held captive by overpriced or inferior goods. This progress provides a vital new choice for the vast consumer base, bringing modern technology into every household. As Changan celebrates its 40th anniversary of vehicle manufacturing and China's modern automotive industry marks over 70 years of development, we envision a future of continued excellence.

For in-depth discussions on leveraging China's burgeoning automotive technological advancements for your global procurement and strategic initiatives, please connect with William at +8618669778647.

Ghana Branch KAILAI Automobile Sales & Service Co.Ltd.

Address: Heavy Industrial Area, Tema. Near by the Total Service Station

Hongkong-branch Seize The Future Automobile (HK) CO.,LTD.

Address: Flat F,5f,Full Yau Court,51g Yau San Street,Yuen Long ,Hongkong

Toronto-branch A PLUS AUTO INC.

Address: Unit #12, 151 Nantucket Blvd, Scarborough, Ontario, Canada

CONTACT INFO

Qingdao Seize The Future Automobile Sales Co., Ltd.

Qingdao Seize The Future International E-commerce Co., Ltd.

PRODUCTS

COOPERATION MANUFACTURERS:

© Copyright 2004 - 2025 Chinatruck.cc. All Rights Reserved.    技术支持: 海诚互联

+8617669717516