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Chinese carmakers most innovative according to study

For decades, German cars were considered the best in the world. However, competition is increasing rapidly. A study shows that German manufacturers are not keeping up with the pace of innovation in China.

,   and  Yaroslav Smith
3 min read
Audi vehicles from the Volkswagen Group are ready for shipment at the port.
Audi vehicles from the Volkswagen Group are ready for shipment at the port.

Vehicle construction - Chinese carmakers most innovative according to study

Chinese automakers have further expanded their leading role in innovations based on a study by industry expert Stefan Bratzel from his Center of Automotive Management (CAM) in Bergisch Gladbach, Germany, which was announced on Thursday. This group accounted for 46 percent of the global innovation strength in the latest study by CAM. Innovations include those that are already being mass-produced.

In the 2019/20 period, the share of Chinese automakers in innovation strength was 21 percent. German automakers collectively saw their innovation strength decline from 45 percent to the current 23 percent. Chinese competition overtook the three German automakers for the first time in the ranking 2022/23.

The CAM has been publishing the report since 2005 and updates it annually. The current results cover approximately 700 series innovations from 30 companies with over 100 automobile brands. The authors evaluate the innovations based on innovation grade, customer benefit, and originality. The current investigation covers the period from February 2023 to January 2024.

Five Chinese manufacturers in the top 10 - BMW at the top

According to the information, there are reportedly five Chinese manufacturers among the top 10 most innovative automotive companies. BMW, the German manufacturer, remains at the top. There were many innovations in the areas of automated driving and the range and charging capacity of electric vehicles.

Geely and SAIC follow in the ranking. They score particularly well in the fields of electromobility, driver assistance systems, and user interface and display concepts. Toyota ranks fifth, and Mercedes-Benz follows in sixth place. Volkswagen Group with brands like VW, Audi, and Porsche landed in sixth place. This was mainly due to a weakness at Audi and the strength of the competition.

Neither the Opel parent company Stellantis nor the American manufacturers Tesla, GM, and Ford are among the top 10 most innovative automakers.

The power balance is shifting towards China

According to Bratzel, the automotive industry is currently experiencing a "tectonic shift in the power balance towards Chinese automobile companies." This trend is increasingly apparent in innovation strength. In the future fields of electromobility, software-defined cars, and networking, Chinese manufacturers have built up competencies on which they are building innovative series vehicles at high speed.

For German automakers, this is a challenge, "They must at least be as innovative as they are expensive." They were able to increase the number of their innovations compared to the previous year by eight percent, but the number of Chinese innovations increased by 32 percent in the same period. "The China tempo is significantly higher than the Germany tempo in the development of innovations," it was stated.

  1. Stefan Bratzel, from his Center of Automotive Management (CAM) in Bavaria, Germany, has highlighted China's leading role in innovations in the global automobile industry.
  2. The study by CAM revealed that Chinese automakers accounted for 46% of the global innovation strength, surpassing German automakers' 23%.
  3. In terms of vehicle construction, BMW, based in Bavaria, remains at the top of the list, but Chinese manufacturers Geely and SAIC are close behind, with strengths in electromobility and user interface concepts.
  4. The research covers approximately 700 series innovations from 30 companies, including brands like BMW, Audi, and Toyota, in various regions such as Lower Saxony, Baden-Württemberg, and Bergisch Gladbach.
  5. Innovations in automated driving and electric vehicle range and charging capacity were key areas of focus for Chinese and German automakers.
  6. While German manufacturers like Volkswagen Group struggled with weaknesses at Audi, Chinese competitors have been increasing their innovation strength at a rate significantly higher than that of German companies.
  7. Automakers in China are leading in future fields such as electromobility, software-defined cars, and networking, posing a challenge for world-class German brands like BMW and Audi.
  8. The results of this CAM study suggest a power shift towards Chinese automakers, with a need for European automakers to maintain their innovation pace to remain competitive in the global car market.

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