The automotive industry is undergoing a profound transformation. Electrification, software-defined vehicle architectures, and evolving mobility models are not only reshaping the product landscape—they are redefining how automotive companies innovate, operate, and compete.
Amid this global shift, Chinese OEMs are rapidly gaining ground. While many European and North American manufacturers continue to grapple with the complexity of legacy systems and organizational inertia, Chinese players are capitalizing on clean-sheet EV architectures, accelerated development cycles, and the deep integration of software into both products and processes.
To explore the strategic implications of this shift, we are pleased to welcome a distinguished expert to our advisory board. With more than 40 years of leadership experience across the global automotive industry—including senior roles at BMW, as a co-founder of Canoo, and as part of Apple’s Special Projects Group—he brings a unique perspective at the intersection of innovation, engineering, and execution.
Key Topics from the Conversation
1. China’s lead is in architecture
Chinese OEMs used the pandemic period to continuously improve their platforms and architectures. According to our advisory board member, their vehicles are “state of the art” in terms of both manufacturing quality and technical design. Especially in the EV sector, they rely on modern, well-designed architectures and reuse key components across entire model lines—without major or even minor changes. This speeds up development and production while reducing complexity.
2. Software sets the pace
Chinese OEMs began developing their own vehicle operating systems 10 to 12 years ago—including the necessary control units and processing power. Today’s models come standard with at least Level 2+ or Level 3 autonomy, including lidar, cameras, and the required computing power. Software, not hardware or traditional vehicle architecture, determines the pace of development. New features are rolled out via over-the-air updates, and vehicles continue to evolve after they are sold—following a model similar to Tesla’s.
3. R&D structures need a fundamental rethink
Chinese manufacturers work with fewer suppliers who act as system providers. The OEMs lead software development, while suppliers focus on hardware. As a result, many of the interface discussions and coordination activities typical of traditional Western R&D setups are eliminated. In addition, there are strong organizational ties between OEMs and their suppliers, enabling more integrated development, faster implementation, and changes.
4. Future business is shifting toward subscription models
Traditional vehicle ownership is becoming less relevant. Flexible models such as vehicle subscriptions are gaining traction. Customers can use a vehicle for as long or as short a time as they want, without long-term commitments. This model offers more freedom and is already well established in the digital world. It is growing in the U.S., is already widespread in China, and is expected to gain momentum in Europe as well.
What does this mean for Western OEMs? The good news: Many OEMs in Europe and the U.S. have recognized this shift and are investing in electrification and software development. The transition is underway—but challenges remain, particularly when it comes to efficiency, speed, and reducing complexity.
Our new advisory board member provides valuable insights—drawn directly from hands-on experience and decades of international industry leadership.
“It’s not just about technology. It’s about organizational structure, decision-making, processes, and the courage to break old habits.”
