Mckinsey partner optimistic about autonomous vehicles in China

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01:29

The Chinese market for autonomous vehicle has huge potential, but it may take longer for this type of vehicle to hit the road here, according to Christopher Thomas, a partner at Mckinsey, who covers advanced technology.

Early this year, the global management consulting firm Mckinsey predicted that fully autonomous cars will account for up to 15 percent of passenger vehicles sold worldwide in 2030. And the whole autonomous vehicle market by 2030 will be at least worth of 500 billion US dollar, “including sales value of new cars and value of services on top of it,” Thomas added.

According to McKinsey’s latest report, "Artificial intelligence as auto companies" new engine of value, the market for autonomous vehicle is potentially "very huge" in China.

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Based on Thomas, around one billion US dollars has surged into Chinese startups in the past five to six years, investing in autonomous vehicle technology. Meanwhile, Chinese consumers are willing to pay as much as 4,600 US dollars as a premium for purchasing an autonomous vehicle. While customers from the US and Germany are willing to pay 3,900 US dollars and 2,900 US dollars, respectively.

But challenge exists. Thomas pointed out that due to the complex driving condition in China, it may take longer to create algorithms to enable autonomous vehicles on the roads.

As to current trade tensions between China and the US, Thomas noted that “making a solution for just one country doesn’t make sense.” And from his perspective, leading companies from both countries want to work together and partner with each other.

“We all need to benefit from global technology. We need to solve problems together. There are some companies that say ‘Close the door. Don’t let other companies come into our country.’ Usually, they have competitive disadvantage. They are not winning so they want the government to help them,” Thomas told CGTN.

(CGTN’s Wang Yue also contributed to the story.)