Tesla and Waymo are locked in a race to build self-driving cars, but their Chinese rivals may be leaving them in the dust.
More than half of the cars sold in China last year were equipped with advanced driver assistance tech, compared to less than 40% in the US, according to data compiled by consulting firm AlixPartners.
The figures suggest China has built a sizable lead in the global race to deploy self-driving technology, with the gap appearing to widen over the past few years.
In 2021, around 24% of the cars sold in both the US and China were equipped with tech that allowed them to steer, accelerate, and brake autonomously, per AlixPartners analysis.
While Western firms like Tesla and Google-backed Waymo are expanding aggressively in the US, they face fierce competition from Chinese companies that have made major technological strides in recent years.
Last month, Tesla rival BYD announced it would install its ‘God’s Eye’ driver assistance tech for free across nearly its entire range of electric and hybrid cars, including the $7,800 Seagull hatchback.
That move quickly turned self-driving technology into the latest battlefront in China’s brutally competitive car market, with several automakers rushing to follow BYD’s lead by offering driver assist systems for free.
The self-driving scramble has left Tesla, which began rolling out its own advanced driver assist software to Chinese customers who had paid an extra $8,800 in February, at a competitive disadvantage in its second-largest market.
“Complimentary intelligent-driving features are emerging as a key competitive tool, further distinguishing China-brand offerings from overseas offerings,” said Yvette Zhang, a Partner in the Automotive and Industrial Practice at AlixPartners.
One key reason that China has been able to roll out self-driving technology quicker than the US is the former’s massive tech talent pool.
Chinese tech giants such as Xiaomi and Huawei have branched out into the electric vehicle business in recent years, and a survey of 400 auto industry executives in the US, China, and the EU conducted by AlixPartners pinpointed the availability of AI and machine-learning talent in China as a key advantage, alongside proximity to microchip hubs and more efficient data processing.
“Chinese brands are leveraging unique advantages to pursue faster and cheaper intelligent-driving solutions that are ‘good enough’ to bring to market,” said Stephen Dyer, Asia Leader of the Automotive and Industrial Practice at AlixPartners.
Dyer added that some global automakers were attempting to learn from Chinese firms by striking strategic partnerships with their rivals.
Last year, Volkswagen struck a deal with Chinese EV upstart Xpeng to collaborate on technology for future products, including assisted driving.
China’s self-driving revolution has not been without its speed bumps.
Last month, an SU7 electric vehicle built by smartphone giant Xiaomi was involved in a fatal crash on a Chinese highway. Xiaomi confirmed at the time that Navigate on Autopilot, the company’s intelligent driving system, was engaged before the incident took place, with the human driver taking over seconds before the crash.
Weeks after the accident, Chinese authorities tightened regulations governing autonomous driving technology, banning automakers from exaggerating the capabilities of assisted driving features and reportedly telling companies to avoid describing them as “self-driving” entirely.
