Exploring Shenzhen's Electric Vehicle Ecosystem

A new energy vehicle with a green license plate speeds past at Shenzhen Bao'an International Airport. [Photo by Oh Ju-seok]

Shenzhen, known as the gateway to China’s reform and opening-up and a hub for advanced industries, is home to BYD, one of the world's largest electric vehicle manufacturers. This has earned Shenzhen the title of the global capital of electric vehicles. Upon arrival, the first thing that caught the eye was the vehicle license plates. One in every two cars on the road was a new energy vehicle with a green license plate, contrasting with the blue plates of traditional internal combustion engine vehicles.
On June 13, green-plate taxis lined the entrance road to Shenzhen Bao'an International Airport. Familiar brands like BYD and Zeekr, along with lesser-known electric vehicle brands, continuously sped by. Despite the varied designs, most vehicles were from local Chinese electric car manufacturers, showcasing the status of the world's largest electric vehicle market.
On some roads, autonomous taxis operated without drivers, picking up passengers. After calling for a driverless taxi near Shenzhen's Talent Park, a vehicle arrived in less than ten minutes. Once all passengers, including those in the back seat, fastened their seatbelts, the car navigated to the destination on its own.
A display in front of the passenger seat showed real-time movements of surrounding vehicles and pedestrians. A passenger in the second row even adjusted the air conditioning temperature. The driverless taxi smoothly stopped and started according to traffic signals, prioritizing safety to the extent that it yielded to merging vehicles three times at an urban intersection, creating a somewhat frustrating experience for passengers.

A BYD driver operates the 'God's Eye' feature while driving on the highway. [Photo by Oh Ju-seok]

In China, autonomous driving technology is entering the mainstream. When the BYD 'God's Eye' feature is activated, drivers can experience semi-autonomous driving by merely resting their hands on the steering wheel intermittently.
While it may seem similar to advanced driver-assistance systems (ADAS) found in other countries, the difference lies in the vehicle's ability to turn the steering wheel and change lanes autonomously after a destination is entered. In fact, once the vehicle leaves the parking lot, there are few situations requiring driver intervention.
As the expansion of autonomous driving continues, the proportion of new energy vehicles is also increasing. Since three years ago, China has gradually reduced electric vehicle subsidies, with most being eliminated last year. Competition now occurs under conditions similar to those for internal combustion engine vehicles, yet about 60% of new car buyers opt for new energy vehicles.
According to the China Association of Automobile Manufacturers (CAAM), sales of new energy vehicles in China reached 16.49 million last year, a 28.2% increase from the previous year. This means that half of the 34.4 million vehicles sold by Chinese automakers, both domestically and globally, were new energy vehicles. Exports of new energy vehicles doubled year-on-year to 2.615 million units.

Smartphones and electric vehicles are displayed side by side at a Huawei store. [Photo by Oh Ju-seok]

Recently, not only traditional automakers but also electronics companies are entering the automotive market, intensifying competition. At a Huawei store in a shopping mall in Ping Shan District, Shenzhen, electric vehicles were displayed alongside smartphones. Visitors casually climbed into the vehicles to compare products, much like they would with TVs and smartphones. On the roads, Huawei's AITO and Xiaomi's SU7 vehicles were easily spotted. As electronics and appliance companies emerge as key players in the automotive market, the competitive landscape with traditional automakers is also being reshaped.
Kim Pil-soo, a professor at Daelim University’s Future Mobility Department, stated, "Electric vehicles are so simple in structure compared to internal combustion engine vehicles that they can be described as 'products with wheels attached to a smartphone.' This will lead to more active market entry by electronics and appliance companies in the future. Shenzhen, with its rapid technological advancements and large market base, is forming a virtuous cycle where affordable yet quality vehicles continue to emerge."

* This article has been translated by AI.