Korea in passive investment while Japan and China in active move for a future car leadership
Ye Jin Soo | jinye@ | 2018-05-14 10:59:27

Japan and China are actively engaged in technology development to lead future car markets such as autonomous vehicles and electric vehicles through establishing a large-scale cooperation system between government, industry and research. Meanwhile, Korea, which is estimated to be outdated by other countries` technology, is not enough to have an industry-academia-related cooperation system, and it is also pointed out that it is passive to invest in future technology development.

According to the automobile industry and the Japan Economic Daily on May 13, Japanese automakers are strengthening cooperation between automobile manufacturers and parts and materials companies to take the lead in the world electric car battery market.

The country started the full-scale start-up to develop a solid-state battery for next-generation electric vehicles in May. Main Japanese automakers such as Toyota, Nissan, and Honda, and major Japanese battery makers such as Panasonic and GS Yuasa, as well as electronics companies such as Asahi Kasei and Toray have participated. Japan`s Ministry of Economy, Trade and Industry will show 1.6 billion yen (about 15.6 billion won) in the LIBTEC (Research Center for Lithium Ion Battery Materials Research), a technology research association that leads such cooperation.

Toyota Motor stated that it will build a dedicated company to develop autonomous vehicles along with parts companies, Denso and Aisin, in March. Toyota has decided to invest KRW 10.7 trillion in research and development to develop eco-friendly vehicles such as electric cars and autonomous vehicles. To this end, Toyota will expand its newly developed platform, TNGA (Toyota New Global Architecture), to its major plants. By adopting TNGA, a component common system, standardized parts can be used for various new models.

The Chinese government, by 2020, has also stepped up its efforts to replace new cars with green cars, replacing 25% of total car sales. Beijing Automotive Group has decided to give up on its own brand of internal combustion engine cars by 2025. The growth of Sun Xiaoming in Hainan province of China said that it plans to operate only new energy vehicles in all areas of Hainan until 2030.

Meanwhile, China is also expanding its network of parts development networks that link the industry and academia in order to speed up the development of future cars by the government. China`s information technology (IT) leaders also challenged the electric car sector. Alibaba, Baidu, and Tencent, three Chinese Internet companies, are gaining attention in the electric car market and pouring money into technology preemption, the Wall Street Journal reported recently. According to reports, Chinese electric car maker Xiaopeng recently attracted USD 348 million (about 370 billion won) investment from Alibaba and Taiwan electronics company Foxconn.

Also, Korea`s autonomous driving technology development cooperation system and investment are very insufficient. Earlier in the year, KPMG International, a global accounting and consulting company, ranked Korea in the top 10 in terms of the autonomous car preparation index.

A specialist of an auto parts maker said, "Regulations surrounding autonomous vehicles are blocking the development of the future car," he said. "We need to build a large-scale technology development system that ties industry-academia-government jointly to government.¡±

According to the Hyundai Research Institute, "The level of future car technology at the national level is somewhat weaker than that of the major developed countries. Despite, the Korean automobile industry has been promoted in the market focused on manufacturing capacity in the past, it is difficult to secure competitiveness in the future market centered on R & I can do it. "

Especially, it advised that automobile parts companies should support and promote research and development so that they can cultivate autonomous driving vehicle and electric car parts production capacity.

It is now pointed out that it is urgent to develop advanced automobile parts such as electric parts, motors and sensors because the capacity of R & D investment is limited. Kim Pil-su, a professor at Daerim University, stated, "The autonomous vehicle segment is three to five years behind the developed countries such as the United States, and the technology is also limited." The government needs to increase its investment in SMEs.¡±

By Ye Jin Soo jinye@


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