KUALA LUMPUR: China EV100, a third-party think tank, is partnering with Qube Integrated Malaysia Sdn Bhd and the Malaysian Chamber of Commerce (MAYCHAM) China, to organise the inaugural Malaysia-China EV Forum in Malaysia to promote greater collaboration in the electric vehicle (EV) industry at the Malaysia-China Summit 2024 (MCS 2024).
The MCS 2024 is in conjunction with the 50th anniversary celebration of diplomatic relations between China and Malaysia.
Set to take place on Dec 17-18, 2024, the forum aims to discuss EV technology breakthroughs, regulatory and infrastructure developments, design innovations and collaborations and sustainability challenges shaping the future of mobility worldwide.
The forum is also supported by the Malaysia Automotive Robotics and IoT Institute (MARii) and the Malaysia Zero Emission Vehicle Association (MyZEVA).
Fostering collaboration, discussing AI potential
China EV100 secretary-general Zhang Yongwei said with its commitment to research and exchange, the forum has become essential to advancing New Energy Vehicles (NEV) policy and industry dialogue.
He said it would help facilitate a seamless and collaborative evolution of the automotive industry, aligned with transformations in energy, information communication and technology (ICT) infrastructure, transportation and smart city development.
Zhang also said AI has the potential to redefine the automotive industry with two primary features intelligent driving, which focuses on autonomous technology, and secondly, AI-enhanced vehicles, which are driven by AI capabilities that integrate entertainment, travel planning and life-enhancing features into the car.
"We anticipate that consumer demand for such in-car 'excitement' will drive innovations and competitive advantages," he said.
He said AI would promote more large-scale model technologies and interactive technologies, such as voice interaction, sound and light interaction, provide assistants and services for in-car work and life, and expand the full range of in-car services.
As AI progresses, competition in the automotive industry will shift from product-based rivalry to competition across industry chains, putting traditional automotive ecosystems against emerging AI-driven automotive ecosystems.
"Leading companies would build their automotive ecosystems, while major automotive-producing countries would develop national ecosystems based on their competitive strengths.
"This cross-border collaboration will reshape the future competitive landscape of the automotive industry," he said.
Outlook for global EV market
Based on a report issued by China EV100 Forum 2024 and McKinsey & Company, it is expected that the global penetration rate of new energy passenger vehicles will reach 50 per cent in 2030, with annual sales exceeding 39 million units.
The total passenger vehicle market is expected to surpass 80 million units, with NEV ownership potentially reaching 240 million.
Zhang said China and emerging markets have become the fastest-growing regions for NEVs in the world, with China already exceeding the 50 per cent penetration rate.
"In contrast, the pace of electrification in the European Union (EU) and the United States (US) has slowed down, mainly due to factors such as cost, power security, market maturity and energy issues," he said.
Meanwhile, the global electrification industry landscape and technological innovation direction are becoming more apparent; the battery industry supply chain is mainly concentrated in China, the US and Europe, with China having the majority of battery production capacity.
Current battery technology is focused on ternary lithium and lithium ferro phosphate, with solid-state batteries emerging as the next advancement.
Corporate performance also reflects the automotive industry's structural transformation.
While traditional large automakers remain profitable, their profits are shrinking rapidly.
"However, NEV companies such as BYD, Tesla and Li Auto are achieving profitability, indicating a structural transformation of the automotive industry," said Zhang.
Globally, he said NEV consumption has shown clear progression. China is leading with consumer preferences shifting to intelligent and personalised needs.
However, European and American consumers remain concerned with driving range and charging convenience.
Opportunities for Malaysia
Meanwhile, Qube Integrated Malaysia executive chairman Richard Teo said the forum is vital for both countries to exchange expertise and reinforce collaboration in EV technology, policy and innovation.
It provides an opportunity and a platform for Malaysian and Chinese companies to explore new partnerships in the EV sector, which aligns with Malaysia vision to advance its automotive industry and position itself as an EV hub.
The China EV100 Forum has been held annually since 2015. The inaugural forum in Malaysia is themed "Shaping Tomorrow: Design, Innovation and Policy in Electric Vehicles."
As a key partner for the forum, China EV100 adds significant expertise and a global perspective to the discussions, reflecting its commitment to supporting regional growth in the EV sector.
"Importantly, it is a place for government, industry leaders and innovators to discuss even the most difficult topics such as technological pathways and policy support, and align on strategies for NEV growth," Richard said. – BERNAMA