"China's Auto Industry Leap... Survival Threatened if Falling Behind in SDV Competition"

September 9 Automobile Day Commemoration Event
Exploring Measures to Strengthen the Future Competitiveness of the Car Industry

As Chinese companies intensify their offensive focusing on electric vehicles and autonomous vehicles, a warning has emerged that South Korea's automotive industry could face existential threats if it falls behind in the competition to transition to software-defined vehicles (SDVs). Key stakeholders driving the domestic automotive industry gathered at the 'Automobile Day' event, unanimously emphasizing that they must not be left behind in the SDV transition.

On the 9th, the Korea Automobile Mobility Industry Association held a conference at the JW Marriott Hotel in Seocho-gu, Seoul, to commemorate 'Automobile Day' and discuss ways to strengthen the future competitiveness of South Korea's automotive industry. Ko Tae-bong, head of Hi Investment & Securities, who delivered the keynote presentation, stressed, "Korean automakers must have an urgent commitment to SDV research and development," adding, "Especially in the underdeveloped autonomous driving sector, integration with artificial intelligence must be expedited." He further noted that many possibilities should be kept open, including talent acquisition, collaboration with startups, and mergers and acquisitions (M&A).

He predicted that the current benefits enjoyed by Japanese and Korean companies due to the hybrid boom would not last long. Ko said, "Toyota is enjoying record profits due to a favorable exchange rate environment and the popularity of hybrids," but warned, "This situation will not last long, and Hyundai Motor Group must never become complacent."

Ko also mentioned the rapid advancement of the Chinese automotive industry, where IT companies are leading electric vehicle production. He said, "Xiaomi made a car in just three years," attributing this to "the presence of about 4,000 electric vehicle industry workers and an expanded industrial ecosystem." He added, "In the future, autonomous driving technology will surpass electric vehicles," and cautioned, "China, which holds the world's second-largest technological capability in autonomous driving and AI, must never be underestimated."

Kang Nam-hoon, Chairman of the Automobile Mobility Industry Association, is delivering the opening address at the Automobile Day event on the 9th.
[Photo by KAMA]

Following this, Professor Jung Gu-min of the Department of Electronic Engineering at Kookmin University introduced the current status of SDV technology, which is becoming the core of vehicle evolution today. Professor Jung emphasized, "The Korean automotive industry needs to establish an organic cooperative system among related companies for SDV development and commercialization." He argued that the fusion of technologies from the information and communication technology (ICT) sector, software (SW), and automotive industries must be supported.

Participants at the event stressed the importance of SDV development while also offering practical advice. Professor Hong Sung-soo of the Department of Electrical and Information Engineering at Seoul National University said, "The automotive industry must clearly recognize the realistic technical limitations of SDVs and engage in technology development to overcome them," adding, "A practical roadmap and implementation strategy are necessary, along with defining the core technologies accordingly."

Additionally, the need to secure software talent for the SDV transition was raised. The industry urged urgent support from the government and academia for talent development. Kang Nam-hoon, chairman of the Korea Automobile Mobility Industry Association, said, "From the perspective of the existing hardware-based complete vehicle industry, SDVs represent a new challenge," and emphasized, "Government and academic support and cooperation are desperately needed to secure software personnel."

In response, Kim Hyo-seon, director at the Ministry of Trade, Industry and Energy, said, "This is a time when cooperation between the government and private companies is more necessary than ever," and pledged, "We will focus on policies to promote the transition to future vehicles, including self-sufficiency and supply of work, securing core technologies and nurturing specialized personnel, and regulatory innovation."