Two forces have impacted the global automotive industry since 2020, the rampant COVID-19 pandemic and the issue of net-zero emissions. Now we can say a consensus on banning the sale of new gasoline cars by 2035 is forming gradually in major markets around the world. The EU has announced such a ban, and in the U.S., California and New York state have passed laws (other states are expected to follow suit). China, the largest market, has not yet legislated against the sale of new gasoline cars, but their pace of electrification is so rapid I don't think binding rules and regulations will be needed at all. Considering the circumstances, auto giants have been rolling out transformation plans over the past two years. While it is simple to draw up plans, however, carrying out the plans can be overwhelmingly hard and complicated. "Time" no doubt imposes the greatest pressure on car manufacturers today. While 2023 is just around the corner, subversive changes will inevitably surface before you know it.

Made-in-China EVs already top the world in terms of technology, but their design quality, assembly quality, and durability are yet to be tested in advanced markets. Now, after two years of success in the Chinese market, Chinese brands are forcing joint venture brands to rethink their future strategic planning and resource investment in the Chinese market. Some are increasing their investment efforts, while others are looking for alternative opportunities with short-term profit and loss in mind. Whatever the decision, however, the Chinese market will always be there, and international giants will eventually have to prove their mettle in the world's largest car market.

The power battery is the component that costs more than others of an EV. The ability to control the supply of batteries will guarantee automakers a winning position in the first decade of the EV era. On the other hand, battery manufacturers can survive the unstable early stage of operation and thrive by working closely with international automakers. Right now, there are only about 10 companies actually capable of competing for global battery sales. It is not too late for Taiwan to go all out for battery opportunities, but the top priority should be the integration of domestic forces.

In the face of the upcoming BEV era, the power battery that accounts for about 40% of the vehicle cost will absolutely be the hotly contested center. Due to the lack of the R&D capacity and the stable supply chain of batteries, the traditional carmakers turned to seek cooperation or partnership with major battery manufacturers, which results in subtle change of market influence in between. The cooperation between Ford and CATL implies that the huge business benefits had overrode the political situation between the two countries; I believed that there will be more transnational cooperation between the two greats in automotive industry - China and USA, which won’t be just for batteries, but also chips, the autonomous driving technologies, or even the connected services of the low orbit satellites.

In a blink of an eye, we are approaching the end of the year. A few reasons contributed to the decreased scale of the global car market this year, including the chip shortage from the year before the last till the following year, the rising cost of raw materials, the appreciation of US dollar, the Shanghai city lockdown causing “unchained” global supply chain, the Ukrainian war affecting material supplies, etc. However, the new energy car market has been blossoming with an estimated 70% growth since last year! This trend clearly states that EVs will sweep the auto market in a few years!

The arrival of the era of new automotive technology is giving Chinese self-owned brands that have never been able to stick out in the gasoline car era an opportunity to overtake on a bend. The huge domestic market allows Chinese brands to "drill" at home before seizing opportunities to enter the global market with a better chance of success. Now the world's most xenophobic car market, Japan, is also marked by Chinese brands as a strategic target.

In recent years, the collaboration between global automakers and tech giants are commonplace, with more complicated, many-to-many partnerships. All these are directly influenced by the new auto tech industry’s diversity and the breakneck speed of its advancements. Now, established global autonomous driving tech frontrunner Waymo has finally partnered with renowned Chinese self-owned brand Geely. Geely is familiar with the foreign auto business, such as the formerly-acquired Volvo and Lotus, the partnered Smart, the invested Mercedes, and the tech-collaborated Renault. This time partnering with Waymo, a subsidiary under US tech giant Alphabet, the effects of this Chinese-US collab will be exceptional.