Auto industry and digital tech.

Issue #189, Feb 24, 2023

In the journey of becoming 'computers on wheels', automobiles or more specifically electric vehicles (EVs) and digital technologies are becoming intertwined with each other with each passing day. Mercedes-Benz for example says it will offer super computer-like performance in every car. Its partnership for Lidars will enhance driver-assist features and hands-free driving. China's domination in EV sale starts from its early identification of battery-driven vehicle technology. Nissan will be the first Japanese OEM to carry out test driving of autonomous driving in China. Tech manufacturers from chipmakers to product assemblers are turning to the EV market to offset the slowdown in consumer electronics. Ford is setting up its new plant to make Lithium ferrous phosphate or LFP batteries, promising low cost and better performance. Below are some recent updates in the auto industry, well integrated with digital technologies.

Super-computer performance in cars

Automakers are racing to match software-powered features pioneered by Tesla, which allow vehicle performance, battery range and self-driving capabilities to be updated from a distance. Mercedes-Benz has teamed up with Google on navigation and will offer "super computer-like performance" in every car, with automated driving sensors. The car maker has agreed to share revenue with semiconductor maker Nvidia, its partner in automated driving software since 2020, to bring down the upfront cost of buying expensive high-powered semiconductors. - ET Auto

Lidars and autonomous driving

Lidar maker Luminar said recently that Mercedes-Benz will incorporate its sensors and software in a “broad range” of vehicles starting mid-decade, in a significant expansion of an ongoing partnership between the two companies. Under the expanded deal, Mercedes-Benz will incorporate the next version of Luminar’s Iris lidar into an upcoming partially automated driving system that will be made available on many future Mercedes models. Mercedes’ new system will allow expanded hands-free operation during highway driving at speeds up to 130 kilometers per hour (81 miles per hour), as well as enhanced driver-assist features in urban environments. - CNBC

China's EV domination

2022 was the eighth consecutive year in which China was the world’s largest market for EVs. For comparison, the US only sold about 800,000 EVs in 2022. How exactly did China manage to pull this off? China realized that they could never overtake US, Germany, and Japan in ICE technology. This pushed the government to break away from the established technology and invest in completely new territory: cars powered entirely by batteries. EV technology was introduced as a priority science research project in China’s Five-Year Plan, the country’s highest-level economic blueprint. As a result of generous government subsidies, tax breaks, procurement contracts, and other policy incentives, a slew of homegrown EV brands have emerged.

Autonomous driving tests in China

Nissan will start real-world tests of a self-driving taxi service in China in early March, looking to collect valuable data to improve the technology that has been slow to reach commercialization. The tests will take place in the city of Suzhou, in Jiangsu province north of Shanghai. Nissan will be the first Japanese automaker to provide autonomous-driving services to the Chinese general public. - Nikkei Asia

The tech dependency on EVs

Tech manufacturers from chipmakers to product assemblers are turning to the EV market to offset a lingering slowdown in consumer electronics. Foxconn, the world's largest contract electronics manufacturer, is cautious about the overall economic outlook but positive on the EV industry. While the shift into cars promises higher margins and new markets for some companies, analysts warn that EVs alone may not be enough to counter sluggish demand for smartphones and other devices. - Nikkei Asia

LFP batteries for low cost and performance

Also known as lithium ferrous phosphate (LFP) batteries, the type to be produced at Ford's new plant in Michigan are a lower-cost alternative to the nickel- and cobalt-containing batteries used in most EVs in the US and Europe today. By cutting costs while also boosting charging speed and extending lifetime, LFP batteries could help expand EV options for drivers. - MIT Tech Review