Global IT companies such as Google and Samsung
Challenge for the mobility market
Direct production review after parts
In the future automobile market, global information technology (IT) companies such as Apple, Google, and Baidu are facing challenges one after another, predicting a fierce battle with automakers. Investing in trillions is basic and active in alliances with competitors. Even though there are strong competitors such as electric car makers including Tesla in the US and global automakers, the atmosphere is not concerned.
The reason why IT dinosaurs are entering the future mobility industry is because they believe that now is the right time for investment and cooperation. The electric vehicle and autonomous vehicle markets are growing rapidly. The dominant forecast is that by 2040, half of the vehicles sold in the world will be electric vehicles.
Moreover, the dependence of future cars on electronic devices is increasing. Electric vehicles can use electricity more easily than internal combustion locomotives, so various electronic devices can be applied. Self-driving cars are getting closer to’moving smartphones’. An official in the IT industry said, “Samsung and LG have the ability to produce electric vehicles right now,” and said, “We just judge that there is no need to jump into electric car manufacturing at the risk of losing business with finished car companies.”
Recently, Apple has participated. As early as 2024, Apple plans to introduce its own self-driving electric vehicle. It is known that it will also produce batteries, a key component of electric vehicles. Apple is hiring key talents in the automotive industry, including Doug Field, vice president of Tesla.
Baidu, a Chinese IT company, is also considering ways to make electric cars themselves. It is reported that they are discussing electric car production with several Chinese automakers recently. It is promising that Baidu consigns electric vehicle production to automakers or establishes a joint venture. Google is investing heavily in autonomous driving technology through its subsidiary Waymo, and Amazon recently unveiled the autonomous driving’Robot Taxi’ through the startup Zox, which it acquired in June.
The same goes for domestic companies. Vehicle electronics (electrical equipment) components and electric vehicle batteries are one of Samsung’s core food items. Most of the top 10 domestic groups, such as LG and SK, are engaged in business related to future mobility.
In the automobile industry, it is observed that other IT companies besides Apple and Baidu will enter the electric vehicle industry sooner or later. Electric vehicles have lower entry barriers related to power compared to existing internal combustion locomotives. On the other hand, the dependence on electronic devices is increasing. Compared to internal combustion locomotives, it is easy to use electricity, so it is possible to apply various electronic devices. An IT industry official said, “Samsung and LG have the ability to produce electric cars right now,” and “We are just thinking that there is no need to jump into electric car manufacturing in consideration of the relationship with the finished car maker.”
Automakers have invested heavily in the field of future cars to keep market leadership. Hyundai Motor Company will invest 2.3 trillion won in the future mobility field by 2025. General Motors, Volkswagen, Ford Toyota and others have also made plans to invest tens of trillion won. There is also a forecast that the joint market between automakers and IT companies will accelerate in the future. This is because the technology required for future mobility is so vast that it is difficult for one company to lead and collaboration is essential.
Reporter Do Byeong-wook [email protected]
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