Technology advantages in China's auto industry are becoming harder to turn into profit, executives said at the 14th Automotive and Environment Innovation Forum in Shanghai on October 23, according to Chinese outlet D1EV (第一电动).
Renault Group China chairman and CEO苏伟铭 (Su Weiming) noted that since 2026, cost competitiveness in new-energy vehicle technologies - including the three-electric system (battery, motor, electronic control) and electronic and electrical architecture - has strengthened further, bringing costs closer to those of combustion-engine cars. He also questioned some investments in smart cockpit features, saying that if the final experience is similar across brands, it is hard to build a unique competitive edge.
J.D. Power's 2026 China Automotive Intelligence Experience Study, released in May, found that the industry's intelligence innovation index rose 70 points year on year to 658, but the functional performance index fell for the first time in four years. More features do not necessarily mean better user experience, the study suggested.
Speed beats novelty
徐捷 (Xu Jie), president of Mann+Hummel's global passenger vehicle division and China region, said the company had seen situations where a technology with performance advantages lost its edge if it entered the market a year late. "Now, the speed of bringing innovation to market is more important than the innovation itself," he said.
王成龙 (Wang Chenglong), vice president of Gentherm and managing director of its Asia operations, said the company still invests in "from 0 to 1" research, especially products that are unique in the market, because they can bring better premiums or a period of higher returns. But Gentherm first checks whether a technology meets real demand from automakers and end users; features that are rarely used and lack practical value are cut if confirmed unnecessary.
After Typhoon rains in August, Gasgoo surveyed 390 people about low-frequency vehicle features. Forty-six percent said such features are valuable if they help in critical moments, while 44 percent said they can exist but should not significantly raise purchase cost. On willingness to pay, 34 percent said they would not pay extra, and 36 percent would pay at most 3,000 yuan (about $423).
NOMI's surprise success
李林峰 (Li Linfeng), founder and CEO of Haiwei, shared the story of co-developing NOMI, the in-car assistant for Nio. When Haiwei took on the NOMI project, its annual revenue was still in the tens of millions of yuan. Nio had been looking for a partner for a long time, and Haiwei delivered the product in 18 months.
At the start, Nio expected the NOMI take rate to be only around 30 percent. But thanks to its unique product definition and user interaction, the take rate later exceeded 80 percent for a long period. Li noted that this result was tied to Nio's brand positioning and user base, and that a high take rate does not directly equal high investment return.
For products that have not yet formed a market, demand may only be verified through development and launch. If companies demand certain short-term returns, potential opportunities may be abandoned before validation; if every idea about future experience deserves long-term investment, even the strongest R&D budget will be exhausted.
Heiko Lässig, general manager of Forvia Hella's Asia-Pacific headquarters and executive vice president of China financial control, said the company separates forward-looking research, customer-oriented product innovation, and manufacturing process improvements. Forward-looking research is hard to quantify in advance, customer-oriented innovation must meet real needs, and process improvements are easier to calculate.
Both Mann+Hummel and Gentherm said they are strengthening global R&D coordination and using China as an innovation hub. Mann+Hummel has placed its global new-energy technology center in Shanghai, with Chinese teams leading development and considering global adaptation from the product definition stage. Under a "China for the world" strategy, the company coordinates directly with Chinese automakers' overseas plans through headquarters-to-headquarters collaboration.
As automakers expand in-house development, Tier 1 suppliers must rethink their technical advantages and business boundaries. Li posed the question on stage: "So how do Tier 1 suppliers survive?"
