(Yicai Global) Oct. 19 -- Chinese auto manufacturers may develop more advanced intelligent connected vehicles and self-driving technologies than their overseas counterparts, according to the head of SAIC Motor’s new energy vehicle unit.

“Chinese carmakers may surpass international rivals in the ICV and autonomous driving sector, as consumers in the Chinese auto market are generally younger than in other countries, so they have a higher acceptance of digitalization,” Wu Bing, chief executive officer of Rising Motor, told Yicai Global.

Vehicle manufacturers favor high configurations, but hardware is only one aspect, as software is also important, Wu said. “Software defines a car, as we know, but software and hardware are inseparable.”

Foreign automakers have less advanced software than their Chinese rivals, which leads to poor sales of some luxury NEVs and other brands under joint ventures between Chinese and foreign partnerships, according to industry insiders.

With the help of new technologies, China has notched up substantial sales of independent brand NEV models priced at between CNY100,000 and CNY200,000 (USD13,850 and USD27,695), CNY200,000, CNY300,000, and even higher.

The CNY300,000 to CNY400,000 segment was dominated by overseas brands, with auto giants Mercedes-Benz, BMW, and Audi enjoying a 70 percent market share. But in the luxury NEV market, China’s BYD and Changan Automobile now have good sales.

SAIC’s huge supply chain and economies of scale will help Rising Auto gain competitive advantages in cost, technology, and manufacturing and avoid the fate of many NEV startups where losses mount as sales climb, Wu said.

Rising Auto launched its first electric sports utility vehicle, the R7, late last month and will start deliveries by the end of this month. Priced at between CNY289,900 and CNY356,900 after subsidies and equipped with a smart cockpit, the SUV also offers an optional battery replacement service.

Editors: Tang Shihua, Futura Costaglione