Nvidia is looking to take advantage of a thriving EV market in China by becoming the dominant supplier of autonomous driving technology.
Jan. 14, 2022
China’s EV market is booming, with no slowdown in sight. Over 3.3 million electric vehicles were sold in 2021 and the largest automotive market in the world is seeing increasing levels of ownership. It’s estimated 40% of all vehicles sold in China will be electric by 2030, driven by ongoing subsidies.
Elon Musk’s Tesla and Berkshire Hathaway-backed BYD are dominating the top sales spots for now, but more and more competitors are racing fast to contend.
China’s EV puppetmaster.
Anyone even slightly associated with tech is trying to join the multi-billion-dollar race now, with search engine Baidu and phone-maker Huawei even looking to get in on the action.
But one company’s not looking to compete, it just wants to lend a helping hand — Nvidia (NASDAQ: NVDA).
While everyone else is fighting for breadcrumbs as the EV market picks up, Nvidia’s picking up the slack by developing all of their semi-autonomous technological needs behind the scenes. This consists of things like its advanced driver assistance system, or ADAS, which allows for maneuvers such as automatic lane switching.
This is all hidden beneath the hood of its Nvidia Drive segment, which has countless worldwide partnerships; 76 in software, 51 for sensors, 44 for cars, and 27 for robotaxis. Key deals in China include that of fast-rising Xpeng and Nio, and although not developing Tesla’s autonomous driving, it does supply the company with GPUs for its own tech.
Nvidia’s staring down the barrel of what was a $98 billion market in 2019, which grew 70% in 2020, and is expected to grow at a 31% compound annual growth rate (CAGR) from 2021 through to 2026 — and remember, that’s just China.
Agreements with legacy brands including Audi, BMW, Toyota, Volvo, and Volkswagen means this growth could eventually translate globally — making the company a leading supplier in automotive tech worldwide — not just a chipmaker for PCs as it’s traditionally known.