Around the world, OEMs are innovating rapidly across a number of key technology domains. Over-the-air (OTA) platforms sit at the foundation of this movement as more automakers integrate OTA at different levels – ranging from minor updates and improvements, all the way through to unlocking dormant hardware and software features. These integrations will, together, pave the way for the Software-Defined Vehicle (SDV) that not only enables the dynamic extension of the vehicle lifecycle, but also rewards customer loyalty at different stages of this lifecycle.
While we recently highlighted the ways in which this innovation is progressing in Europe and the USA through our OEM OTA Capability Rankings, our rankings for the China region painted a different picture – one where many of its domestic OEMs outpace those delivering vehicles globally. In this Insight, we will explore our Q1 2024 OEM OTA Capability rankings for the China region, highlighting the similarities and differences between these rankings and those for the EU and the USA. We will then use the China rankings to take a deep dive into Zeekr, the highest-ranking domestic OEM on the list, to understand how its key technologies and strategies excel beyond those offered in other regions, and what OEMs in those regions can ultimately learn from Zeekr’s success.
China Rankings V Europe and USA Rankings
As shown in the graphic below, the top five OEMs in our China OTA Rankings are Ford, Zeekr, Tesla, Arcfox, and NIO. While this does initially show some overlap with both the EU rankings (where Ford ranks at the No. 4 spot, and Tesla at No. 5) and the USA rankings (where Ford is No. 1, and Tesla is No. 3), an immediate difference is the presence of domestic OEMs who, while newer players in the automotive industry, match or exceed global OEMs with many years of OTA experience.
Zeekr, for example, has a lower score than Tesla but ranks above the American OEM since it is one of only two automakers in the list offering a solution that matches Vehicle 3.0 – the third of SBD Automotive’s SDV Levels, and the closest to Vehicle 4.0 (which itself represents the true SDV). At the same time, regarding our SDV Levels, a more notable difference between the ranking lists is the number of OEMs in the China rankings that match our criteria for Vehicle 2.0 (denoting vehicles that provide baseline connectivity with the cloud, where enhanced connectivity is applied to key or core domains with high bandwidth network).
These observations together illustrate how, in terms of OTA and software updates alone, the Chinese auto market is innovating at a much quicker pace than the European and American markets. To understand the scope of this innovation more closely, we will take a deep dive into Zeekr, analyzing its latest innovations while uncovering the lessons that western OEMs can learn from their success.
Analyzing Zeekr
Ranking 2nd in our OEM OTA Rankings list for China, Zeekr is a premium vehicle brand owned by the Geely Group, the biggest privately-owned automobile manufacturer in China, and the 7th biggest OEM in the region overall. It is one of 11 companies owned by the Geely Group, sharing the same brand portfolio as Volvo, Polestar, and Smart.
Zeekr was established in 2021, with the Geely Group positioning it as a ‘premium new energy brand’ set to offer a range of premium, all-electric models across various segments for different consumer demographics. Its first EV was the ‘001’, which was initially previewed by Lynk&Co (another Geely Group brand) as the Zero Concept EV – a pure-electric shooting brake for the E-segment. Following its China launch in 2021, the 001 reached Europe in 2023 alongside the brand’s urban SUV, called X. Today, its China line-up includes these models, the 009 MPV (multi-purpose vehicle), the 007 sedan, and a performance edition of the 001 called 001 FR. While this line-up found success in China, and footing in Europe, the brand’s key strengths over international OEMs were facilitated by Zeekr Technology Europe, its automotive research and development center.
This center provided the Geely Group with the Sustainable Experience Architecture (SEA), a modular EV platform that represents one of its most notable technologies. While the platform was introduced in the 001, its modular capabilities have since allowed it to be used as the base for many Geely-brand models launched across many segments and at different price points. Since 2021, the use of SEA across Geely’s brand portfolio has grown in tandem with the Group’s auto-related acquisitions and investments. In its first generation, SEA was used in EVs from Polestar and Volvo, has gone on to be used in more affordable electric models from Smart, and was more recently used by Lotus as the base for its new luxury EVs.
For Zeekr, this modular platform will enable it to develop a broad EV line-up of models occupying different segments that will, in turn, help the brand appeal to a variety of consumer demographics. The benefits of SEA go further when considering Zeekr’s place in the Geely Group, and how its platform is already supporting vehicle brands with a strong presence in Europe, such as Polestar, Volvo, and Smart. The synergy between these vehicle brands, combined with their existing popularity in Europe, could potentially broaden the appeal of the Zeekr brand as it continues to expand in the region. At the same time, the modularity of SEA helps streamline EV design and production, offering a ‘one-size-fits-all’ architecture that unlocks new efficiencies while reducing costs for Zeekr, Volvo, Polestar and other Geely brands without compromising on the innovation they can deliver in areas such as performance and technology.
The lesson that western OEMs can ultimately learn Zeekr’s use and scaling of SEA, especially at such a rapid pace, is somewhat unique. This is because, while modular architectures are in the early stages of adoption in North America and Europe, their success in these regions will lie in how far they are utilized and implemented. This will be particularly important for automakers who, like the Geely Group, have multiple brands under their belt and the ability to reach several consumer demographics through their brand portfolio. Developing and utilizing modular vehicle architectures with scalability in mind will allow these automakers to unlock the full potential of a platform like SEA, and benefit from the enhanced efficiency and cost-effectiveness it can bring to both vehicle production and pricing.
In Europe, these benefits have been recognized by the Volkswagen Group, whose new modular electric drive matrix (MEB) is primarily being used to develop new EVs for the ID. family. While this range is set to occupy different segments, the Volkswagen Group is beginning to incorporate MEB into vehicles further along its brand portfolio. Cupra, for example, utilized MEB to build its compact EV Born in 2021, and has since used it to develop the EV’s subsequent generations, while Audi is currently building its new Q4 e-tron and Q5 e-tron EVs on the platform. While this demonstrates how modular architectures could thrive internationally, especially if embraced by OEMs like Volkswagen, it remains to be seen how a platform like MEB will compare to SEA within western markets – especially when considering the different price points offered across the brand portfolio of the Geely Group, and the price points offered by brands under the Volkswagen Group.
다음 단계
As illustrated above, Zeekr’s charging innovations and place within the Geely Group, as both a vehicle brand and in-house technology provider, will both strengthen its foundations and boost its appeal as it continues to expand across Europe. Zeekr is, at the same time, one of many Chinese OEMs who are expanding beyond China following a period of domestic success.
While we have explored OTA within this article, it is just one of several domains where Chinese automakers are innovating rapidly, with unique innovations also presented in areas such as infotainment, battery, charging, and architecture all being offered under competitive vehicle price points. This coincides with governments in the west encouraging EV adoption through strict emissions targets for OEMs, and those OEMs in turn developing electrified vehicle lineups and offering an array of incentives for customers looking to purchase an EV. As Chinese automakers continue to expand internationally, having struck a balance between innovation and affordability in their home market, automakers operating across the western world must be well prepared for their arrival, equipping themselves with strengthened connectivity strategies that help them meet and excel beyond this new competition.
In the China version of our OTA and Software Updates Guide, our connectivity experts track the latest industry activities around OTA updates in the region to help you assess your OTA strategy against those presented by domestic OEMs, while mapping out the types of updates they are delivering today, and the technologies required to enable them. New for the 2024 edition, our OEM OTA Capability Rankings for the China region offer expert insights into how high-ranking Chinese OEMs excelled in the delivery of their OTA strategies, and how lower-ranking OEMs can strengthen their systems.
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