Core Insights - The article highlights the critical role of a small vehicle control chip, which can incapacitate a high-value smart electric vehicle, emphasizing the importance of a robust and autonomous supply chain in China's automotive industry [1] - China has become the center of the global automotive supply chain, particularly in the incremental market, with nearly 70% of global power battery installations and a significant shift from importing to exporting intelligent components [1] - Despite its central position, the industry faces structural challenges, including reliance on foreign technology and materials, necessitating a strategic focus on supply chain security and domestic substitution [1] Group 1 - The automotive supply chain's resilience is tested by three dimensions: the need for breakthroughs in key technology areas, the oligopolistic nature of upstream materials like lithium and cobalt, and the long-term dependence on non-autonomous software systems [1][2] - The traditional supplier relationship is evolving from a one-way supply model to a collaborative value creation approach, with leading automakers forming localized supply clusters to reduce costs and enhance responsiveness [2] - The strategy for international expansion must shift from merely exporting products to integrating into local systems, emphasizing a "Local for Local" approach to mitigate risks associated with foreign markets [2] Group 2 - The unique advantages of China's supply chain lie in its strong cross-industry extension and collaborative capabilities, allowing companies to diversify their applications beyond automotive [3] - The Chinese automotive supply chain is expected to evolve towards high-end, intelligent, green, and integrated development, with a focus on independent innovation and industry collaboration [3] - The modernization of the supply chain is not just about increasing value and market share but also about enhancing resilience, innovation, and collaborative capabilities [3]

Core Insights - The global automotive supply chain is undergoing significant transformation, with China playing an increasingly prominent role as a center for incremental automotive supply chain development [1][2] - Key areas of focus in the automotive supply chain include batteries, chips, and software, which are critical for future industry competition and supply chain evolution [1][2] Group 1: Supply Chain Trends - The automotive supply chain is extending into new fields such as embodied intelligence, low-altitude economy, and unmanned vessels, highlighting the importance of cross-industry collaboration [1][3] - Chinese companies have established a leading advantage in technology and industrial development, making them central to the global automotive supply chain [1][2] Group 2: Challenges and Innovations - The rapid iteration of battery technology and the challenges posed by the pandemic-induced chip shortage emphasize the need for supply chain security, with a low domestic production ratio of critical automotive chips remaining a concern [2] - Companies are exploring innovative models for internationalization, such as maintaining core processes in China while establishing automated production facilities abroad to mitigate risks associated with local labor and supply chain dependencies [2][3] Group 3: Strategic Shifts - The automotive supply chain is increasingly sharing components with emerging sectors, providing new opportunities for growth and collaboration [3] - In an era of heightened supply chain uncertainty, automotive companies are shifting their strategic focus from just-in-time production to building secure and stable supply chain systems, necessitating increased investment in capital, human resources, and regional planning [3]