Preface
Edited by Zhang Yongwei, Chairman of the China EV100 Research Institute, "AI Revolution in the Automotive Industry: From Product Transformation to Foundational Capability Building" is grounded in the era of deep integration between automobiles and AI (Artificial Intelligence). Through a systematic framework of five sections—"Overview, Products, Enterprises, Elements, and Outlook"—the book deeply analyzes the comprehensive impact of AI technology on the automotive industry. This book is suitable for professionals engaged in intelligent vehicles and their upstream and downstream industries, as well as technology and industry decision-makers, and serves as a reference for students and readers in related fields.
Chapter 3: AI Drives the Intelligent Evolution of the Automotive Industry
The focus of competition in the automotive industry is shifting from electrification dominated by the "three electric systems" to intelligence centered on intelligent cockpits, intelligent driving, and intelligent connected vehicles. The traditional automotive parts supply system is being restructured, and incremental intelligent parts have become the core carrier for value growth in the automotive industry chain. "Incremental parts" refer to hardware and software modules newly added or significantly upgraded during the intelligent and connected evolution. They feature high per-vehicle value, strong technical barriers, and vast growth potential, including high-computing-power chips, sensors, AI large models, intelligent cockpit hardware, and chassis-by-wire systems.
This chapter consists of the following 9 subsections, which will be released sequentially by the China EV100 Think Tank.
1. Perception Parts
2. Computing Platforms
3. Operating Systems
4. Chassis-by-Wire
5. ADAS/AD Solutions
6. Voice Interaction
7. In-Vehicle Application Software
8. Smart Batteries
9. Smart Lighting
Chassis-by-Wire
The development progress of various chassis-by-wire components varies, with brake-by-wire, steer-by-wire, and suspension-by-wire being the key focus for future development. The system architecture of chassis-by-wire is similar to that of traditional chassis, mainly consisting of throttle-by-wire, shift-by-wire, brake-by-wire, steer-by-wire, and suspension-by-wire. Due to the different operating principles and development difficulties of each subsystem, the five major chassis-by-wire components are at different stages of development. Among them, throttle-by-wire technology is mature and has now basically become a standard configuration, with a penetration rate approaching 100%; shift-by-wire has lower technical difficulty and is mainly used in fuel and hybrid vehicle models, currently at a moderate penetration rate; brake-by-wire currently has two main technical routes: Electro-Hydraulic Brake (EHB) and Electro-Mechanical Brake (EMB). The EHB market is in a stage of rapid development, while EMB technology and regulations have been gradually improved, entering the stage of small-scale mass production; steer-by-wire has high safety requirements and its technical maturity needs to be improved, with only a few vehicle models currently applying it; suspension-by-wire technology is relatively mature, but due to high costs, it is mainly equipped in high-end models.
In recent years, as domestic brands break through to the high-end market and the localization of core components advances, the prices of models equipped with suspension-by-wire have gradually moved downward. By comparison, brake-by-wire, steer-by-wire, and suspension-by-wire are the three fields with the most promising development prospects and domestic substitution potential in the coming years.
(1) Brake-by-Wire
Parking brake systems are transitioning from mechanical cable types to integrated Electronic Parking Brakes (EPB). EPB refers to the technology that realizes parking braking through electronic control. Integrated EPB can not only achieve basic functions such as static parking and static release but also serve as a redundancy for service braking, intervening in service braking when braking failure occurs. Currently, the installation rate of EPB in passenger vehicles has reached a high level. According to relevant data, in 2023, the penetration rate of EPB as standard pre-installed equipment in new passenger vehicles in China exceeded 87.8%, and it has now been basically popularized in passenger vehicles. Although currently about half of the domestic passenger vehicle EPB market share is still mainly occupied by foreign enterprises such as ZF, Continental, and Advics, domestic substitution has achieved certain breakthroughs.
Brake-by-wire service braking systems can be divided into EHB and EMB based on the pressure-building mode. Affected by the upgrade demands for braking systems in intelligent electric vehicles and the maturity of technology, Electro-Hydraulic Brake (EHB) is currently the mainstream short-to-medium-term technical route for brake-by-wire. EHB realizes braking by driving the original hydraulic system with a motor. According to the level of integration, it is divided into EHB Two-box and EHB One-box. The main difference lies in whether the Electronic Stability Control (ESC) system is integrated with the electric booster system (eBooster). For EHB Two-box, the electric booster and ESC are separate, which can meet redundancy requirements under certain conditions; the coupling degree between the brake pedal and the brake wheel cylinder is divided into two modes: non-decoupled and semi-decoupled, enabling partial braking energy recovery. For EHB One-box, compared with EHB Two-box, it has a higher degree of integration and lightweight level, but to meet higher redundancy safety requirements, a Redundant Brake Unit (RBU) needs to be added; the brake pedal and the brake wheel cylinder are fully decoupled, enabling complete braking energy recovery.
Electro-Mechanical Brake (EMB) cancels the original hydraulic system and directly integrates the motor on the brake caliper. It has the advantages of fast initial response, fast dynamic response of braking pressure, light weight, and high integration. The mandatory national standard GB 21670-2025 "Technical Requirements and Test Methods for Braking Systems of Power Vehicles" will allow the application of brake-by-wire. Domestic EMB products have passed verification, and 2026 is expected to be the first year of EMB mass production.
Currently, the overall EHB market is developing rapidly, and the application potential of EHB One-box is emerging. Because EHB Two-box products are more flexible and can be compatible with the needs of different vehicle models, they have taken the lead in achieving vehicle installation applications; while EHB One-box products have a high degree of integration, and without considering safety redundancy, their cost is lower than that of EHB Two-box products, and their vehicle installation applications are gradually increasing. According to relevant statistical data, in 2024, the delivery of new passenger vehicles pre-installed with standard Electro-Hydraulic Brake (EHB) in the Chinese market (excluding imports and exports) reached 11.8227 million units, a year-on-year increase of 44.46%, with an installation rate of 51.58%. Among them, One-Box scheme EHB delivered 8.2608 million units, a year-on-year increase of 74.04%; over 90% of new energy vehicle models are equipped with the One-Box scheme. In the installation volume of pre-installed standard Electro-Hydraulic Brake (EHB) in the Chinese market, the share contributed by domestic suppliers has risen rapidly, reaching 38.32% in 2024.
EMB is expected to enter large-scale mass production. With ZF confirming a million-level pre-installed supporting project in early 2025, EMB has broken through the proof-of-concept stage. The engineering process of the domestic chassis technology supply chain is accelerating synchronously. Mainstream suppliers represented by Zuobiaoxi, Huashen Ruili, and BWI Group have passed multiple rounds of calibration tests in extreme environments, and product maturity has significantly improved. Despite broad application prospects, for EMB to leap from technical demonstration to large-scale popularization, it still needs to overcome engineering challenges such as redundant architecture design, durability under extreme working conditions, and system cost control. Since the traditional hydraulic backup is canceled, the EMB system must build a highly reliable dual-power and dual-communication redundant architecture, which directly leads to an increase in hardware costs. At the same time, as a high-frequency execution component involving safety, EMB must meet the braking durability standard of millions of cycles. Especially in performance models, the wheel-side motors face more severe challenges in high-temperature resistance and heat dissipation. In the future, in the braking system market, relying on its faster response speed and higher control accuracy, EMB will take the lead in penetrating high-end new energy and high-performance models. The industry generally predicts that EMB technology will usher in its first mass production window in the next year or two.
(2) Steer-by-Wire
EPS (Electric Power Steering) is the current mainstream technical route for passenger vehicle steering systems. According to relevant data statistics, in recent years, the penetration rate of EPS in China's passenger vehicle market has reached about 98%. According to the installation position of the assist motor, EPS can be divided into four types: Column Electric Power Steering (CEPS), Pinion Assist Electric Power Steering (PEPS), Double Pinion Electric Power Steering (DPEPS), and Rack-Electric Power Steering (REPS). Among them, the CEPS system has a compact structure and low manufacturing cost, suitable for small passenger vehicles; PEPS performs moderately in terms of transmission efficiency and cost, suitable for medium-sized passenger vehicles; DPEPS and REPS perform well in terms of transmission efficiency and safety, suitable for medium and large passenger vehicles. As the requirements for steering performance of intelligent electric passenger vehicles increase and costs decrease due to technological maturity, the penetration rate of high-performance DPEPS and REPS is expected to further increase.
Steer-by-Wire (SBW) further replaces the mechanical steering shaft between the steering column and the steering rack with electrical signals, realizing rapid system response, releasing front cabin space, and decoupling the steering wheel from the chassis, thereby adapting to the needs of L3 and above intelligent driving. Currently, this technology is in the early stage of industrialization, with a penetration rate of less than 1%.
Domestic regulations have lifted the restrictions on the physical coupling of the steering wheel and wheels in the steering system. The mandatory national standard GB 17675-2021 "Motor Vehicles - Steering Equipment - Basic Requirements" deleted the provision that "fully power-operated steering equipment shall not be used" (this provision was seen in Article 3.3 of the 1999 version), thereby lifting the previous restrictions on the physical coupling of the steering wheel and wheels in the steering system, providing basic conditions for the application of domestic steer-by-wire products. At the same time, this standard makes clear provisions on the failure conditions of fully power-operated steering equipment to ensure the safety of fully power-operated steering equipment. In December 2025, the mandatory national standard GB 17675-2025 "Motor Vehicles - Steering Equipment - Basic Requirements" clarified the application of steer-by-wire technology and formulated functional safety requirements for steer-by-wire.
Technological progress in key components is an important support for the development of steer-by-wire systems, and the current layout of steer-by-wire systems shows diversity. The steer-by-wire system mainly consists of three parts: the road feel simulation module, the steering execution module, and the controller and wiring harness module. The road feel simulation module includes the steering wheel, road feel feedback motor, torsion bar, torque and angle sensor, and worm gear reducer; the steering execution module consists of the steering execution motor, gear and rack reducer, rack position sensor, and steering tie rod; the controller and wiring harness module includes the road feel feedback controller, steering execution controller, communication bus, and related sensor wiring harnesses. Among them, key components on various sensors and controllers, steering motors, and reduction mechanisms are the core components of the steer-by-wire system, and their technical level determines the progress of the industrialization application of steer-by-wire technology.
Currently, the layout of steer-by-wire systems is mainly divided into 5 categories, including single-motor front-wheel steering, dual-motor front-wheel steering, dual-motor independent front-wheel steering, active rear-wheel steering, and four-wheel independent steering. Each layout has its own advantages and disadvantages. Overall, distributed steering systems such as active rear-wheel steering and four-wheel independent steering are more flexible and have greater potential for future development.
Leading OEMs and parts suppliers are actively deploying steer-by-wire, and the progress of industrialization is showing an accelerating trend. In terms of OEMs, leading domestic and foreign car companies such as Toyota, Tesla, Audi, Great Wall, and Geely have all carried out technical reserves for steer-by-wire and plan to gradually apply it to mass-produced models. In 2013, the Infiniti Q50 became the world's first mass-produced passenger vehicle equipped with a steer-by-wire system; in 2021, Toyota offered the steer-by-wire system as an optional configuration on the overseas version of the bZ4X model; the Tesla all-electric pickup Cybertruck, which began delivery at the end of 2023, will also adopt steer-by-wire technology for the first time. The NIO ET9 has become the first domestic mass-produced model equipped with steer-by-wire function. Independent car companies such as Great Wall, Geely, and NIO are also deploying steer-by-wire through independent research and development or cooperation with suppliers, and plan to promote its application on mass-produced vehicles in steps. In terms of suppliers, after years of accumulation, leading foreign enterprises such as ZF, JTEKT, Bosch, and Nexteer have reached the stage of mass production access; domestic suppliers such as Saisi, Qingwei, Tuopu, and Bethel are also actively carrying out R&D deployment. Some enterprises have completed the development of steer-by-wire functions on prototype vehicles, and steer-by-wire is expected to usher in large-scale application.
(3) Suspension-by-Wire
The mainstream solution currently promoted in the suspension-by-wire industry is the air suspension. Currently, there are four main forms of active suspensions on the market: Continuous Damping Control (CDC) suspension, Magnetic Ride Control (MRC) suspension, hydraulic suspension, and air suspension. The CDC suspension controls the opening of the valve in the shock absorber through a solenoid valve to change the oil flow rate, thereby adjusting the damping size. Due to its low cost and relatively average comfort effect, it is widely used in mid-range and mid-to-low-end models. The electromagnetic suspension uses magnetorheological materials as the damping medium and uses electromagnetic reactions to change the material state to adjust the suspension stiffness and damping. Due to its high cost, it is currently only applied in some high-end models. The hydraulic suspension mainly consists of hydraulic cylinders, hydraulic pumps, and hydraulic valves, realizing the adaptive adjustment of the vehicle to the road surface through hydraulic transmission. Currently, hydraulic suspensions are widely used abroad, while domestic development is relatively slow. The air suspension mainly consists of air springs, variable damping shock absorbers, air supply units, ECUs, and sensors. Among them, the air spring is a non-metallic spring that fills compressed air into a flexible sealed container and uses the compressibility of gas to realize the elastic effect, having excellent elastic characteristics. The ECU can receive vehicle height, driving speed, and road condition signals for working condition judgment, and realize stiffness and height adjustment through automatic charging and discharging. Air suspensions have high comfort and good handling, and are the mainstream suspension-by-wire in the current passenger vehicle market. The "air spring + CDC shock absorber" is a relatively common matching solution.
According to data released by Gaogong Intelligent Automotive Research Institute, in 2024, the delivery of new passenger vehicles pre-installed with standard air suspensions in the Chinese market (excluding imports and exports) reached 824,600 units, a year-on-year increase of 44.97%; from January to June 2025, the delivery of passenger vehicles pre-installed with standard air suspension systems in the Chinese market (excluding imports and exports) reached 502,400 units, a year-on-year increase of 54.05%, continuing to maintain a high-speed growth trend.
The domestic substitution of air suspensions is accelerating. Overseas suppliers of air suspensions are mostly old-line parts groups such as Continental, Vibracoustic, and WABCO. They have deep technical accumulation, and their product range covers key components such as air springs, shock absorbers, air supply units, and ECUs, and they have mass production experience and supporting customers. These suppliers have cooperated with foreign car companies for a long time, especially luxury brands such as BBA, and occupy an important position in the market. When domestic independent brand car companies introduced air suspensions in the early stage, they also mostly chose overseas suppliers first. For example, the air springs and shock absorbers of the NIO ES8 are supplied by Continental, and the air suspension of the Zeekr 001 is supported by Vibracoustic. Since foreign manufacturers are difficult to meet the explosive project demands in terms of development resources and response speed, and car companies themselves lack corresponding development experience, this provides development opportunities for relevant domestic supporting suppliers. Currently, domestic suppliers have achieved multi-point breakthroughs in core components of air suspensions. Components such as air springs and air supply units are gradually moving towards localization, and some enterprises have mastered the supply capability of air suspension assemblies. For example, the total shipment volume of Konghui Technology exceeds 1 million sets, and its domestic market share from January to June 2025 reached 37.1%; Baolong Technology has a complete air suspension product matrix, and most of its products have been designated by the OEM market. Domestic suppliers have localized cost advantages and response speed advantages, and their technology is catching up rapidly, which is expected to accelerate the process of domestic substitution of air suspensions.