The Chinese electric vehicle (EV) market’s explosive growth has led to increased demand for laser projectors in cars, marking a new geopolitical tension point as China’s EV supply chain expands globally.
Appotronics Sees Surge in EV-Related Sales
Shenzhen-based Appotronics, a leader in laser display technology, has significantly increased its sales to EV manufacturers since entering the market in 2022. In the first half of 2024, the company reported 241 million yuan ($33 million) in EV-related sales, with 200 million yuan generated in the second quarter alone. These projectors, priced at approximately 5,000 yuan ($703) each, are featured in premium EV models like the Aito M9 and Stelato S9, co-produced by Huawei and Chinese automakers.
Innovative Features in Chinese EVs
In China, cars are evolving into “moving houses,” with features like 32-inch screens and other infotainment devices becoming standard. This trend reflects a broader shift as Chinese consumers increasingly demand tech-savvy features in their vehicles.
Market Dynamics and Competitive Pressure
Appotronics is on track to generate $100 million in EV-related sales for the full year. However, competition from companies like Tesla and Huawei is pushing legacy automakers to include more consumer-oriented gadgets in their vehicles.
Geopolitical Challenges Impact Expansion
While Appotronics is benefiting from the EV boom, it faces challenges due to rising geopolitical tensions. Although not directly targeted, the company is feeling the effects of increased U.S. scrutiny on Chinese technology. This has hindered research collaborations with U.S. universities, a concern highlighted by Chairman and CEO Li Yi.
Global Expansion Amid Domestic Market Pressures
As China’s domestic EV market becomes increasingly saturated, companies like Appotronics are motivated to expand internationally. Li Yi emphasized the importance of global innovation, noting that focusing solely on the domestic market could limit creativity and growth.
Source: asia.nikkei.com
