The IAA, one of the world’s largest motor shows, was dominated by the presence of tech giants like Amazon, Qualcomm, and Samsung. This indicates the increasing demand for traditional automakers to enhance the technology in their vehicles, both in terms of software and hardware, as they strive to catch up with Tesla’s electric car dominance. Moreover, integrating advanced technology features is crucial to meet the expectations of car buyers in China.

To achieve this, automakers are not working alone. They are seeking assistance from technology companies while also focusing on developing their own software solutions. Tesla’s success can be attributed to its technological advancements in areas such as batteries and Autopilot, which offers semi-autonomous driving features. The user interface within Tesla cars also resembles that of a smartphone, which rival automakers aim to replicate.

In the smartphone industry, two major operating systems dominate – Google’s Android and Apple’s iOS. However, in the automotive world, car companies are now investing in developing their own operating systems to make the car screens and infotainment systems more similar to smartphone apps.

For instance, Mercedes-Benz unveiled its self-developed operating system called MB.OS, which will power various features in their upcoming electric vehicles, including a large dashboard screen and a voice assistant. Swedish EV player Polestar has partnered with smartphone maker Xingji Meizu to create an operating system called FlyMe, providing a seamless experience between smartphones and Polestar cars. U.S. chipmaker Qualcomm showcased how its chips can power AI applications within vehicles, such as a car assistant that can find recipes and create shopping lists.

Tesla has been at the forefront of driverless technology with its Autopilot ADAS. While no car can currently operate autonomously from a legal perspective, automakers are increasingly focusing on developing advanced driverless features and capabilities. Tesla leads the pack in this area, followed by young Chinese players like Xpeng and Nio.

In the highly competitive Chinese electric vehicle market, automakers are striving to become major players. To differentiate themselves, Chinese firms are emphasizing the technological features of their vehicles, including software and ADAS capabilities. Chinese customers have high expectations for the latest tech perks in their cars. Foreign companies like BMW and Mercedes are also investing heavily in tech development to boost EV sales in China. Volkswagen CEO Oliver Blume highlighted the importance of software engineers in China, aiming to operate with “China speed” in the market.