Innovation in China – A Perspective on Automotive Software

Auto Shanghai 2023 has once again made clear: China is the world’s largest market for automotive manufacturing and vehicle sales, and has been for more than a decade. The country currently accounts for around one third of worldwide vehicle production annually, which exceeds the production of the United States and Japan combined (Source). Therefore, it is also leading the current global e-mobility transformation, with a strong focus on disruptive technologies, including battery-electric and connected vehicles.

Chinese customers are used to high-speed network coverage and access to a wide range of services integrated in their favorite apps. In China, the smartphone plays a more significant role in daily life than anywhere else in the world. There are local apps available only in China that have more than 100 million active users per month, and you may not have heard anything about them. Cash has almost been completely replaced by digital payment solutions, which means you often cannot access your money if you run out of battery. Being dependent on using your phone throughout the day led to the adoption of rentable mobile phone chargers, which are widely available at kiosks throughout the cities.

This level of tech savviness can be observed across all ages. Consequently, Chinese car customers also have high expectations of their in-car infotainment system and other automotive technology, too.?

The path to fully electric and seamlessly connected requires adaptation of our software technologies to the specific needs of our customers, as well as local regulations. Our goal is to develop leading software that enables enhanced functionality, safety and security during the rapid worldwide migration to e-mobility and automated driving technologies. To create a customer-centric luxury experience, we must offer seamless access to both online and offline features, from our MB.OS and MBUX to the Mercedes me App on your mobile device, all supported by our Mercedes-Benz Intelligent Cloud.

A regional perspective on software development

As a global company, we must look at software from a regional perspective. For instance, China has developed a strong and protected digital ecosystem that makes it difficult for external tech companies to enter or penetrate the local market. So, for us to continue to grow in China, and with China, we must continue to develop local talent and expertise for our digital solutions, which play an increasingly significant role in our cars.

We have made important investments in our Chinese development infrastructure, with fully-fledged R&D networks both in Beijing and Shanghai. The teams are growing at a rapid pace. Our R&D Center in Shanghai focuses on the development of advanced driver-assistance systems (ADAS) and parts of our infotainment system, working closely with the International Design Center to optimize our UI/UX with our other global hubs. This requires a global mindset and talented people on the products – Shanghai is the perfect place for that, and I am happy to confirm that we have already found many experts here!

Ultimately, our goal is to delight our tech-savvy local customers with more intuitive digital experiences. For instance, our new voice assistant can accept two commands simultaneously and accurately. It understands exactly what customers want in milliseconds.

Another example is developing a safer and more intuitive way to guide customers through the physical world. Our R&D team in China is collaborating with Unity game engine developers on a new platform for real-time 3D content that enhances our navigation as well as ADAS functionality. We have built a dedicated app and an enriched 3D user interface for automated driving functions based on Alibaba’s AMAP data, including lane-level map views specific to our customers in China. I was already able to test it – stay tuned!

MB.OS is our chip-to-cloud architecture, a scalable software and E/E hardware platform for all of our futures vehicles, and it is designed to ensure safety and privacy. We've also decoupled software development from the hardware lifecycles. It is an innovative approach for us to take full responsibility as architects of software and hardware, but it will accelerate development and allow for continuous innovation, which results in better products.

A precursor to MB.OS will be available soon in China, with the next-generation MBUX granting access to a rich entertainment ecosystem. A new software container for Android apps enables easy installation of third-party apps optimized for the vehicle, including apps like Tencent Video, QQ Music and Ximalaya internet radio. Because entertainment and digital technology are extremely important, we are using our scenario-based Abacus AI integration platform to provide an experience catered specifically to our Chinese customers. You can read more about our third-party app integration which we announced with our new E-Class.

MB.OS will also become the base for more ADAS and automated driving features, as our chip-to-cloud architecture becomes available in upcoming vehicle platforms. Using cloud connectivity, high compute power, machine learning, advanced sensors and Mercedes-Benz’ trusted safety approach, allows us to provide enhanced functionalities designed for challenging driving environments.

Level 3 conditionally automated driving in China?

In fact, in late 2021, we became the world’s first car maker to be granted a system approval for conditionally automated driving in Germany. Soon, we will introduce system-initiated lane changes, in collaboration with regional partners for sourcing of advanced real-time map data. This data-driven software and hardware solution means that under certain conditions the car can take control, so drivers can do other things. We have already begun testing Level 3 conditionally automated driving here in China, to ensure it fits China’s unique traffic conditions and the expectations of our customers.

We are also leveraging the full potential of fast 5G connections to the Mercedes-Benz Intelligent Cloud to serve as a digital backbone that extends the capabilities of our vehicles for their entire lifecycle. Our cloud is designed to be flexible and highly scalable, so it can grow in line with future vehicle and user requirements. By 2025, for example, it will enable us to manage more than 16 million connected vehicles worldwide.

We develop most of our cloud software in-house, as well as base software and other central parts of MB.OS, like our infotainment system, MBUX. However, we also base MB.OS on proven industry standards and collaborate with industry-leading partners on additional hyperscale solutions, including Microsoft Azure and also Tencent Cloud locally here in China. Our fast cloud connectivity enables near-instant app downloads, media streaming, and over-the-air (OTA) system and software updates. That means we can update existing features and add more advanced functionality in the future, which ensures that our products continue to evolve with our customers, no matter where they are in the world.

With software, we are capable of redefining automotive luxury as safer, electric and intelligent – on a global scale, tailored to local needs.