Over 95% of China's automotive sensor market share is in the hands of foreign companies?

China's automotive sensor market is largely controlled by foreign companies, with over 95% of the market share held by multinational corporations. Many vehicle manufacturers and ECU (Electronic Control Unit) producers prefer to pay millions in R&D fees to companies like Bosch rather than use domestic sensors. The industry still relies heavily on imitation, with small-scale companies struggling to break into the mainstream market. At major trade shows such as engine exhibitions and auto parts expos, a clear disparity can be seen. Multinational giants like Bosch dominate the central exhibition areas, with luxurious booths and well-dressed staff. In contrast, smaller local booths are often overlooked, with only a few staff members hoping for visitors. These small booths house many Chinese automotive sensor companies that are hardworking and dedicated to R&D. However, they struggle to gain recognition from major manufacturers. Despite the growing demand for sensors—comparable to nuclear fission—their products remain stuck in the domestic market, unable to reach the global stage. The term "hollowing out" has been used to describe the current state of China’s sensor industry. According to Wei Anli, deputy secretary-general of the China Internal Combustion Engine Industry Association, sensors are essential for modern vehicles. They act as the "eyes, nose, and ears" of the car, transmitting data to the ECU, which then controls various systems. In more advanced vehicles, sensors are even more critical, especially in safety, emissions, and autonomous driving technologies. Today, an average family car may have a dozen sensors, while luxury models can have hundreds. As cars become more intelligent and automated, the number of sensors will grow exponentially. China, being the world's largest auto market, presents a huge opportunity for sensor development. Yet, despite this potential, the domestic sensor industry remains underdeveloped. Experts agree that the Chinese sensor market is entering a period of rapid growth. However, compared to international players like Siemens, Bosch, and Honeywell, China's automotive sensors are still lagging. Most domestic companies produce low-end products, while high-tech sensors required for emissions control are still imported. Li Songlin, general manager of Jilin Province Dewo Si Automotive Electronic Components Co., Ltd., noted that even with patents and innovations, financial constraints prevent progress. Sensor R&D requires massive investment, which most small firms cannot afford. Without sufficient funding, breakthroughs are difficult to achieve. Song Xibin, deputy general manager of Shandong Guogu Functional Materials Co., Ltd., added that domestic sensors face challenges in practical application. Matching with engines and calibration systems is complex, and the lack of advanced testing equipment limits product reliability. This leads to customer distrust, further hindering growth. Despite these challenges, there are signs of hope. Companies like Guogu, Changzhou Liande, and Dewo Si are making strides in the sector. Some have achieved global standards, and others are catching up with advanced manufacturing techniques. For instance, Ningbo Yinzhou Yonglin Wang Linhu introduced an automated assembly line, improving product consistency and reliability. Wei Anli believes the government should invest more in basic research and support leading companies to drive industry growth. He emphasized that without independent sensor technology, China risks losing control over a crucial part of its automotive industry. While the path is challenging, he remains optimistic about the future, noting that young entrepreneurs are pushing forward with innovation. With continued effort, the day may come when China regains a significant portion of its sensor market.

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