Chinese carmakers just as innovative as German ones
BMW is according to a recent study the most innovative car manufacturer in the world. However, automotive expert Stefan Bratzel notes a significant shift in power balance towards competition from China. The VW group is making strong strides.
Chinese car manufacturers are now on par with established ones in terms of innovation strength. A recent analysis by the Center of Automotive Management at the Bergisch Gladbach University of Applied Sciences reveals that for the first time, two Chinese corporations have made it to the second and third places in the innovation ranking: Geely and SAIC. This shows a "groundbreaking shift in innovation power" towards Chinese manufacturers.
Five Chinese automakers have made it into the top ten for the first time. BMW takes the first place, just barely ahead of Geely, due in part to the Mini brand, which according to the study is currently the most innovative volume brand. "In the current year, the group of Chinese automobile manufacturers accounts for a record-breaking 46 percent of global innovation strength," writes study author Stefan Bratzel. In 2019, this figure was still at 21 percent.
The innovation strength of German manufacturers has dropped from 45 to currently 23 percent. While the German manufacturers were able to increase the number of their innovations compared to the previous year by eight percent, the innovations of Chinese manufacturers increased by nearly a third. The same applies to the innovation strength of the German carmakers, which has essentially stagnated. "We are witnessing a seismic shift in power balance towards Chinese automobile companies," Bratzel concludes. For German manufacturers, Bratzel sees a major challenge: "They must at least be as innovative as they are expensive."
VW performs "historically poorly"
Thirty manufacturers with around 100 brands were analyzed. The results are based on 709 individually evaluated innovations that are already available to customers on important global markets, as well as 282 pre-series innovations or studies. The innovation numbers and strength of American manufacturers have both dropped by a third. Tesla performs a bit better, but only makes it to place 13.
SAIC's partner Volkswagen ranks sixth. "Volkswagen performs historically poorly in this year, not only due to the current innovation weakness of the Audi brand, but also due to the strength of other players like BMW and especially some Chinese OEMs - a trend we have been observing for several years," Bratzel explains. "It is also noteworthy that Toyota's current strength is at fourth place - the best performance of the world's largest automobile corporation since 2017."
BMW scores points with the Level-3 Traffic Jam Pilot in the 7 Series, which is the first time it can operate in the dark. BMW also shows strength in electric cars, for example with the range of the Mini Cooper or the charging power of the 5 Series. Geely and SAIC perform particularly well in electromobility, driver assistance systems, and user interface and display concepts.
The car industry is witnessing a significant shift in power, with Chinese carmakers rapidly closing the gap with established manufacturers. For instance, two Chinese corporations, Geely and SAIC, have recently ranked second and third in the innovation ranking, signifying a groundbreaking shift towards Chinese manufacturers.
Despite BMW being recognized as the most innovative car manufacturer globally, Chinese automakers like Geely and SAIC are making significant strides in sectors like electromobility, driver assistance systems, and user interface and display concepts, posing a challenge for traditional European manufacturers.
