Core Insights - GAC Toyota has announced the establishment of the "China ONE R&D" system, transferring decision-making power for China-exclusive models from Japan to local teams, marking a significant shift in power dynamics within multinational automotive companies [2] - Nissan plans to invest 10 billion yuan to expand its technology center in China, allowing local teams to lead vehicle development, while BMW aims to integrate insights from Chinese R&D teams into its next-generation models by 2026 [2][3] - The shift towards local R&D leadership is driven by the rapid evolution of electric and intelligent vehicle technologies in China, necessitating a deeper understanding of local consumer needs [3][4] Industry Dynamics - The unique demands and technological advancements in the Chinese market have become crucial for local teams to gain leadership roles in multinational companies [2][4] - Chinese consumers' expectations for smart connectivity features are pushing multinational companies to adapt their decision-making processes, with BMW's strategy reflecting this trend [3] - The establishment of local R&D capabilities is seen as essential for multinational companies to remain competitive in China's fast-paced automotive market [4] Challenges and Conflicts - The transfer of power is not merely a technical adjustment; it also involves inherent conflicts between global strategies and local market demands [5] - Organizational changes may lead to internal power struggles, as local teams gain decision-making authority, challenging the traditional roles of headquarters [6] - Disparities in interests between joint venture partners regarding profit sharing and resource allocation could complicate collaboration efforts [7] Market Impact - If more joint ventures follow this trend of power transfer, it could reshape the competitive landscape, with local technologies increasingly influencing multinational brands [8] - Brands lacking local R&D capabilities may face accelerated exit from the market, as evidenced by the decline of Korean brands in China [8] - The global R&D framework may undergo transformation, with Chinese innovations potentially setting new standards for multinational companies [9] Future Outlook - The transition to a "new joint venture era" signifies a pivotal moment for the Chinese automotive industry, reflecting its rising influence in global automotive dynamics [9] - The success of this transformation will depend on the ability of joint venture partners to overcome cultural barriers and redefine profit-sharing mechanisms [9]

Group 1 - Joint venture car manufacturers are making significant advancements in smart driving technology through collaborations with domestic suppliers, which they promote as a competitive advantage [2][3] - Volkswagen Group's investment in Horizon and the establishment of a joint venture to provide autonomous driving solutions for the Chinese market exemplify the efforts of joint venture car manufacturers to enhance their smart driving capabilities [3] - The introduction of advanced features in models like the Buick Electra E5, including the new VCS smart cockpit system and Super Cruise driver assistance system, highlights the aggressive push of joint venture brands in the smart technology arena [3][4] Group 2 - The increasing penetration of new energy vehicles (NEVs) and the rapid rise of domestic brands are pressuring joint venture car manufacturers to enhance their smart technology offerings [4][5] - The long decision-making chains of joint venture manufacturers, which were manageable in the traditional fuel vehicle era, hinder their ability to adapt quickly to the fast-changing NEV market [5][10] - The collaboration between joint venture manufacturers and domestic smart driving suppliers is seen as a necessary trend to improve their technological capabilities and market competitiveness [7][10] Group 3 - The concept of "Chinese content" or "含华量" is gaining attention, referring to the proportion of local technology components in vehicles, which reflects the commitment of joint venture manufacturers to enhance their smart technology [7][10] - The potential emergence of a "new joint venture era" is suggested, where competition and collaboration coexist between joint venture and domestic brands in the NEV market [9] - Joint venture manufacturers are also seeking partnerships beyond domestic suppliers, indicating a shift towards a more open and diverse collaboration landscape in the automotive industry [9][10]