Chinese vehicle owners will demand more high-tech features in the future, so automakers must stay competitive.
Ford's innovative Ecoboost engines head for production Image: Ford |
Foreign cars typically enjoy a preferred status in China’s automarket, however they must increase innovation and research and development if they are to stay ahead of the game, say industry executives. Madji Abulan, president of Delphi Asia Pacific, describes a “major shift” over the last few years, with more and more foreign carmakers investing in developing components in China, specifically for the Chinese market.
Abulan’s views are shared by Continental China President Jay Kunkel, who sees local R&D as a “critical success factor” and is already leading to the local production of a wide range of parts, including brakes, chassis systems, safety electronics and instruments.
With a swelling market of cheaply manufactured vehicles heading towards saturation, competition will increasingly be driven by technology, claims Kunkel, while rising Chinese labour costs will make labour-intensive manufacturing processes marginally less profitable.
The hiring of Chinese nationals in R & D has also increased, although the limited number of top level engineers makes it difficult for some companies to make significant strides in improving their technology.