When Germany publicly warned that "the European automotive industry must be wary of China's technological monopoly," Mercedes Benz announced the integration of China's Hesei Technology's LiDAR technology into its global strategic vehicle models; Yikatong Technology, supported by Geely, is in close negotiations with Volkswagen; Renault and Wenyuan Zhixing's autonomous driving Robobus test has also officially started.

This seemingly contradictory industrial landscape is actually a true reflection of the globalization process of China's intelligent automotive supply chain. Driven by the dual waves of electrification and intelligence, the global automotive supply chain is undergoing a silent yet profound revolution.

From LiDAR to intelligent cockpit, from autonomous driving algorithms to automotive grade chips, Chinese companies are racing on the track of technological iteration, constantly breaking through trade barriers and establishing a new technological coordinate system at an astonishing speed in the core area of traditional Western automotive powers. This process not only reflects the rise of China's intelligent automotive technology, but also the profound changes in the global automotive industry landscape. In the interdependent and competitive global market, cooperation and competition between Chinese and European automotive companies are intertwined. This revolution not only changed the pattern of the global automotive industry, but also paved the way for the rise of China's intelligent automotive supply chain in the global market.

01 China's supply chain successfully connects overseas markets

Recently, according to relevant media reports, Mercedes Benz has chosen Hesai Technology as its global supplier of laser radar sensors for its vehicle models.

This decision is undoubtedly a milestone, as it is the first attempt by foreign car manufacturers to apply such Chinese made technology to car models sold outside of China. It not only reflects Hesai Technology's leading position in the field of LiDAR, but also reflects global car manufacturers' recognition of the technology and cost of Chinese supply chain enterprises.

The reason why Hesai Technology can stand out from numerous competitors and become a partner of Mercedes Benz is mainly due to its continuous innovation and cost control capabilities in LiDAR technology. Hesai Technology not only holds a leading position in the domestic market, but also successfully expands overseas markets and establishes cooperative relationships with multiple internationally renowned automobile manufacturers.

According to Fan Peng, Chief Financial Officer of Hesai Technology, in order to meet the growing demand, Hesai has expanded two production lines in China this year to achieve an annual production capacity of over 2 million units. At the same time, the company is also setting up production lines overseas, with plans to put them into use as early as next year, to serve Chinese overseas customers who are concerned about tariffs and logistics risks. In addition, the "exclusive multi-year" contract signed between Hesai Technology and a leading European automaker further proves its competitiveness in the international market. Although the specific details of the contract have not been disclosed, it is foreseeable that this cooperation will bring more orders and market share to Hesai Technology, driving its continued expansion in the global LiDAR market.

Against the backdrop of the United States intensifying efforts to restrict global automakers from adopting Chinese components and software solutions, the success of Hesai Technology undoubtedly has demonstrative significance. It indicates that despite trade tensions and geopolitical risks, Chinese supply chain enterprises can still occupy a place in the global market with their technological strength and cost advantages.

Similar to the breakthrough of Hesai Technology in the field of LiDAR, Yikatong is gradually achieving global layout in intelligent cockpit systems.

As a company supported by Geely, Yikatong has partnered with Volkswagen to apply its digital cockpit system Antora 1000 to Volkswagen's smart cars produced in Brazil and India. This system uses proprietary chips and software from Yikatong to provide services such as voice recognition and navigation maps, enhancing the intelligence level of vehicles.

Shen Ziyu, CEO of Yikatong, stated that the two companies are currently seeking to expand their partnership by including Skoda brand cars sold by Volkswagen in Europe, while also exploring the possibility of launching cars equipped with Yikatong technology in the United States. This plan reflects Volkswagen's high recognition of China's intelligent technology. Against the backdrop of the global automotive industry's intelligent transformation, intelligent cockpit systems, as one of the important means to enhance vehicle competitiveness, are receiving increasing attention from car manufacturers. Yikatong, with its advanced technology and rich experience, has successfully entered the supply chain system of global automobile manufacturers and become an important partner.

It is worth noting that in the process of expanding into overseas markets, Yikatong also focuses on addressing geopolitical risks.

Shen Ziyu stated that Yikatong has been establishing its research and development team overseas, aiming to alleviate concerns about the use of Chinese technology through localized operations. In addition, Yikatong plans to reduce its dependence on Geely Group and lower the proportion of Geely related revenue to below 50% by 2028. By 2030, half of Yikatong's revenue will come from overseas.

In addition to Hesai Technology and Yikatong successfully going global, Wenyuan Zhixing in the field of autonomous driving is also accelerating its entry. Recently, Renault and Wenyuan Zhixing launched autonomous driving Robobus trials in the center of Barcelona, Spain, and provided free services to citizens from March 10th to 14th. This move marks the successful entry of Chinese intelligent vehicle technology into the European public transportation field.

The Robobus test route in Barcelona is 2.2 kilometers long and has 4 stations, which has been approved by the Barcelona City Council and Transport Authority. This is not only a recognition of China's intelligent automotive technology, but also an affirmation of China's supply chain's ability to expand in overseas markets. At the same time, in Valence, France, partners such as Renault and Wenyuan Zhixing are preparing to launch commercial services for Level 4 autonomous shuttle buses, connecting TGV train stations and commercial parks, providing services to 150 companies and 3000 employees, further highlighting the broad application prospects of China's intelligent automotive technology in the European market.

In addition to France and Spain, China's smart car supply chain is actively expanding in other regions of Europe. At Zurich Airport, Wenyuan Zhixing began conducting autonomous driving transportation trials from January 2025, assisting employees in commuting between terminals and demonstrating the ability of autonomous technology to operate in a high safety environment.

Han Xu, founder and CEO of Wenyuan Zhixing, stated that the trial operation in Barcelona is a crucial moment for Wenyuan Zhixing's international expansion strategy, demonstrating its technological leadership position in the European hinterland.

Renault Group is not limited to its cooperation with Wenyuan Zhixing, but is also making efforts in the field of advanced driver assistance systems (ADAS) for personal vehicles, providing functions such as adaptive cruise control and lane keeping systems to improve safety and comfort. This coincides with the technological advantages of China's supply chain in intelligence and electrification, jointly promoting the transformation and upgrading of the global automotive industry.

02 Geopolitical games cannot stop technological dividends

Some people say that when Mercedes' global models are equipped with Hese LiDAR and drive off the Sindelfingen factory production line, and when Barcelona citizens ride on the Wenyuan Zhixing unmanned minibus shuttling through the Gothic district's stone steps, these scenes indicate that the global automotive industry is experiencing an unprecedented transfer of power.

The overseas expansion of China's intelligent automotive supply chain is not simply a cost advantage output, but an industrial paradigm revolution based on technological intergenerational differences. In this revolution, "Made in China" is evolving into a global solution for "Made in China", and the choice faced by traditional automotive powers is to find a new balance between technological nationalism and industrial realism. The successful cases of Hesai Technology, Yikatong, and Wenyuan Zhixing are a microcosm of Chinese supply chain enterprises demonstrating competitiveness in the global market. They have successfully entered the supply chain system of global automobile manufacturers through technological innovation, cost control, and large-scale production capabilities, becoming an important driving force for the intelligent transformation of the global automobile industry.

Undoubtedly, technological innovation is the key to the success of Chinese supply chain enterprises. In the fields of LiDAR and intelligent cockpit systems, Chinese supply chain enterprises are continuously increasing their R&D investment to promote technological innovation and industrial upgrading. Through continuous technological innovation, Chinese supply chain enterprises have not only improved product performance and quality, but also reduced production costs and enhanced their competitiveness in the global market.

After so many years of development, cost control is another major advantage for Chinese supply chain enterprises. As a global manufacturing center, China has a complete industrial chain and abundant labor resources, which enables Chinese supply chain enterprises to effectively control costs and provide products with price advantages in the production process. This advantage is particularly evident in the global market, enabling Chinese supply chain enterprises to stand out in competition with international rivals. Especially the subsequent large-scale production capacity is also an important support for Chinese supply chain enterprises.

With the rapid development of the global automotive industry, the demand for components and systems is also constantly increasing. Chinese supply chain enterprises, with their strong production capacity and economies of scale, are able to meet the global automotive manufacturers' demand for large-scale production, ensuring stable supply and timely delivery of products.

However, Chinese supply chain enterprises also face many challenges in the process of expanding into the global market. Trade tensions and geopolitical risks are among the most prominent issues. To address these challenges, Chinese supply chain enterprises need to strengthen communication and collaboration with international partners to jointly promote the healthy development of the global automotive industry.

At the same time, Chinese supply chain enterprises also need to continuously improve their technological strength and brand influence, enhance their discourse power and competitiveness in the global market.