Automotive "Internet Plus"

1. Definition and Concept Evolution

Automotive "Internet Plus" refers to a systemic transformation process that deeply integrates Internet thinking, technologies, and business models across the entire automotive value chain. Broadly speaking, it encompasses the end-to-end digital transformation spanning R&D, manufacturing, new vehicle sales, mobility services, and the aftersales market. First introduced following the rollout of the "Internet Plus" national action plan in 2015, this concept has been widely adopted across the automotive industry as an industrial extension of terms such as the "Internet of Vehicles" (IoV) and "Intelligent Connected Vehicles" (ICVs).

The concept of "Internet + Automotive" has evolved across three key phases:

• Phase 1: Vehicle + Smartphone. Leveraging smartphone integration platforms such as Apple CarPlay and Android Auto, mobile phone features were mirrored onto in-car infotainment screens to deliver basic telematics and multimedia playback. At this juncture, the vehicle itself lacked standalone online connectivity.

• Phase 2: Internet + Vehicle. Driven by dedicated in-vehicle operating systems (such as YunOS for Car featured on the SAIC Roewe RX5), the vehicle itself serves as a connected smart terminal. Equipped with real-time cloud navigation, voice command interaction, and over-the-air (OTA) updates, the vision of "cars running on the Internet" became a reality. Most contemporary intelligent connected vehicles operate within this phase.

• Phase 3: Autonomous Driving and Mobility Ecosystems. Anchored by autonomous driving technology as its pinnacle, vehicles are evolving from pure transport tools into full-fledged shared mobility service platforms.

2. Core Technological Enablers

The technical deployment of Automotive "Internet Plus" relies on the Internet of Vehicles (an integrated convergence of in-vehicle networks, inter-vehicle communications, and vehicular mobile broadband), underpinned by several core pillars:

"Vehicle-Road-Cloud" Integrated Network Architecture: Facilitates seamless vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-cloud (V2C) communications via 5G and C-V2X (Cellular Vehicle-to-Everything) protocols. As of 2025, over 11,000 intelligent Roadside Units (RSUs) have been deployed nationwide, with Level 2 (L2) ADAS adoption in new passenger vehicles surpassing 62%.

Compute-Network Convergence: Establishing a tiered "device-edge-cloud" computing infrastructure that orchestrates local in-vehicle compute, edge processing, and cloud services in tandem to meet the ultra-low latency data processing demands of autonomous driving.

Software-Defined Vehicles (SDVs): The industry's value chain is fundamentally pivoting from hardware to software and digital services. Between 2020 and 2025, the profit contribution from automotive hardware declined from 79% to 69%, while software profits surged from 6% to 17%, with projections expecting software to command 25% of total profits by 2030.

3. Industry Convergence and Business Model Shifts

The primary catalyst behind "Internet Plus" is cross-sector integration. Partnerships between carmakers (OEMs) and tech companies have evolved beyond early-stage technology licensing and joint customization toward strategic investments, joint ventures, and shared R&D laboratories. This convergence has triggered three strategic transformation vectors:

• Product-Level: Shifting from "feature-driven" to "scenario-driven" designs, harnessing big data insights to cater to end-user lifestyle needs and modularising the smart cockpit into bespoke, customisable functions.

• Marketing-Level: Moving away from traditional mass-marketing towards "precision customer targeting", establishing full-funnel, multi-touchpoint smart marketing ecosystems.

• Aftersales & Services: Pivoting from "managing vehicle sales" to "lifetime customer engagement", unlocking recurring revenue streams via paid OTA feature upgrades and software-as-a-service (SaaS) subscriptions.

4. Future Outlook and Industry Trends

"Human-Vehicle-Road-Cloud-Satellite" Multi-Dimensional Connectivity: The competitive frontier of smart connected vehicles is expanding from ground-based "Vehicle-Road-Cloud" networks into unified "Space-Air-Ground" ecosystems, harnessing low-Earth-orbit (LEO) satellite communications to deliver uninterrupted all-terrain coverage and seamless connectivity.

From "Data Silos" to a "Third Living Space": Ubiquitous connectivity bridges vehicles with urban traffic management networks, smart power grids, and smart home IoT ecosystems. The vehicle cabin has evolved into a versatile mobile space for remote working, multimedia entertainment, and relaxation, redefining the car from a mere transit tool into a dynamic "mobile living space".

AI-Defined Vehicles: The deep integration of large AI foundational models into smart digital cockpits is transforming vehicles from passive "command executors" into "proactive intelligent co-pilots", boasting multi-modal sensory fusion and complex cognitive reasoning capabilities.