Angela Wang, Neusoft, gives an insight into the Chinese car market at the 28th Automotive Electronics Congress: ‘Chinese customers want everything - they increasingly see the car as a lifestyle object and are prepared to pay for new functions, even if they are not yet perfect.’ (Bild: Matthias Baumgartner)
At the 28th Automotive Electronics Congress, Angela Wang, Senior Vice President and Chief Investment Officer of Neusoft Corporation, offered deep insights into the current transformation of the automotive industry. Her presentation entitled ‘Build New Ecosystem with China Market to Win in the Era of Software-defined Vehicle’ highlighted the challenges and opportunities created by the integration of software in vehicles, especially with regard to the Chinese market. Wang emphasised: ‘Today, everyone is talking about software-defined vehicles (SDV) and we realise that we are entering uncharted waters.’
Why is China a key market for SDVs?
Angela Wang emphasised that China plays a crucial role in the development of SDVs not only because of its market dynamics, but also because of its innovative strength. ‘Consumer demand for new technologies in China is immense. The willingness to pay for innovative features is higher than in many other markets.’ She explained that the percentage of Chinese consumers willing to buy an electric vehicle as their next vehicle is well over 80%, which is impressive compared to the US and Germany.
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What challenges do OEMs face in SDV development?
The development of software-defined vehicles brings with it immense challenges, particularly in the organisation and management of large amounts of software. Wang noted that many OEMs are now focussing on in-house development to preserve their own IP and control: ‘Many OEMs are now working in-house to develop their own IP and get to market faster.’ This development requires closer collaboration with technical partners who can provide both engineering and integration services.
From the kick-off of the project to series production, we only needed six months.
How does Neusoft work with global partners?
Neusoft has positioned itself as a leading technical partner that supports OEMs in their endeavour to develop SDVs. Wang described the hybrid approach Neusoft takes to accelerate product development: ‘We work with different technical partners and use agile development methods to respond quickly to market demands.’ This approach has enabled Neusoft to significantly shorten the development time for new vehicle models and thus strengthen the competitive advantage of its partners.
What does this mean for the future of the automotive industry?
In an increasingly competitive market, speed is a decisive factor. Wang explained that the development cycles for new vehicle models have been dramatically shortened: ‘A new model can now be brought from concept to production within 18 to 20 months.’ This acceleration of development processes is not only a response to market demand, but also a result of close co-operation between OEMs and technical partners such as Neusoft.
We believe that collaboration creates value. Global OEMs can benefit from the innovative strength and cost-effective solutions of Chinese partners.
What can global OEMs learn from China?
In conclusion, Wang emphasised the importance of collaboration between global OEMs and Chinese partners. ‘We believe that collaboration creates value. Global OEMs can benefit from the innovative strength and cost-effective solutions of Chinese partners.’ Wang was convinced that the combination of Chinese agility and global expertise is the key to success in the age of software-defined vehicles.
FAQ: The most important insights from Angela Wang's presentation
What are the biggest challenges in developing SDVs?
Managing large amounts of software and adapting to new organisational structures are key challenges for OEMs.
How do Chinese OEMs work on the development of SDVs?
Chinese OEMs increasingly rely on in-house development to control their IP and work closely with technical partners.
What role does Neusoft play in SDV development?
Neusoft acts as a Tier 0.5 partner, significantly shortening the development time for new vehicle models through agile methods and close co-operation with technical partners.
How important is collaboration between global and Chinese partners?
Collaboration is crucial to drive innovation and accelerate the time-to-market of new products.
Will the product requirements of global and Chinese markets converge?
Wang believes in convergence, but is not sure how long this process will take.
About Angela Wang
Dr Angela Wang has been with Neusoft since 1995 and has held the position of Senior Vice President since May 2011. She has been Secretary to the Board since December 2011 and Chief Investment Officer since April 2021. In January 2024, she also assumed the role of President of Neusoft Europe. Dr Wang is responsible for mergers and acquisitions, strategic cooperations, corporate governance and international business, among other things. She is also a member of the Audit Committee of the Shanghai Stock Exchange and the Expert Panel of the Sci-Tech Innovation Board of the Shanghai Stock Exchange. Dr Wang has received multiple awards, including ‘Leader of China's Software and Information Service Industry’ and ‘Forbes China 50 Top Women in Tech 2020’. She holds a PhD in Computer Applications from Northeastern University in China.