Shanghai sees intelligent cars as a US$72 billion industry by 2025, unveils plan to spur autonomous driving tech
- Government calls on companies and institutes to step up research and development on a number of key technologies
- Plan envisions 70 per cent of cars produced having autonomous driving features by 2025
A new plan, released by the General Office of Shanghai Municipal People’s Government on Monday, calls for establishing a “domestically leading innovation and development system” for intelligent cars, with the city making “significant progress in the research and development of core technologies” and achieving “self-sufficiency of core equipment”.
More than 70 per cent of vehicles produced by 2025 should have level 2 (L2) and L3 driverless systems, while L4 systems should be realised in “specific areas and scenarios”, according to the plan.
At present, most of the intelligent vehicles on the mainland’s roads are classified as L2 or L2+, which stipulate that the driver must be alert and ready to take control at all times. L3 is commonly seen as a “hands-off” system, while L4 translates to “eyes-off” operation.
The plan calls on relevant companies and research institutes in the city to step up research and development of a number of key technologies, including automotive-use chips, artificial-intelligence algorithms, laser-radar components, in-vehicle operating systems, intelligent computing platforms and steer-by-wire systems, according to the plan.
Observers estimate the value of the current intelligent car industry in Shanghai at less than 100 billion yuan.
The municipality promises to increase Shanghai’s policy support to autonomous driving development, by providing companies various government guidance funds and helping them seek financial and policy incentives from the central government, according to the plan, which did not specify the amount involved.
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“The autonomous driving systems that are being developed by carmakers and technology firms now are all preliminary technologies, and the industry size can grow to trillions of yuan when L4 and L5 autonomous driving become a near certainty over the next decade,” said Phate Zhang, founder of the Shanghai-based EV news site CnEVpost. “Government support will greatly help Shanghai-based companies develop autonomous driving cars.”
The 70 per cent goal for locally built vehicles with autonomous driving systems translates into nearly 2 million vehicles a year in 2025.
Shanghai, China’s “Motown”, took a hit in car output and sales during the two-month citywide lockdown that ended on June 1, as key assemblers such as Tesla and SAIC Motor suspended production.
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Last week, local authorities unveiled an AI master plan, aiming to boost Shanghai’s digital economy. That plan encourages relevant entities to test intelligent vehicles in areas such as highways, urban roads and car parks in Shanghai.
Pudong New Area, which sees intelligent cars as one of its core industries, in late August set up 12 roads totalling 29.3 kilometres as test areas for autonomous vehicles – the first such move in a central urban area in China.
