---
title: "AAC TECH's automotive acoustic rapid expansion, entering the global industrial chain T0 tier"
description: "AAC TECH is rapidly expanding its automotive acoustic business, providing comprehensive solutions to meet the needs of automotive manufacturers. With the rise of new energy vehicles, the market demand"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/224261490.md"
published_at: "2025-01-08T02:32:02.000Z"
---

# AAC TECH's automotive acoustic rapid expansion, entering the global industrial chain T0 tier

> AAC TECH is rapidly expanding its automotive acoustic business, providing comprehensive solutions to meet the needs of automotive manufacturers. With the rise of new energy vehicles, the market demand for in-car acoustic systems is growing rapidly, and it is expected that the market size will exceed 90 billion yuan by 2025. With 30 years of research and development experience and technological accumulation, AAC TECH is committed to developing high-performance, innovative in-car speakers to promote the development of the automotive acoustic market

With the rise of new energy vehicles and the increasing consumer demand for automotive intelligence and comfort, cars are no longer just a means of transportation but rather a mobile intelligent space. The in-car acoustic system, as an important configuration to enhance in-car comfort and entertainment, is experiencing rapid market growth.

Traditional automotive audio hardware generally faces issues such as being heavy, taking up a lot of space, and difficulty in balancing bass and treble tuning. However, with the continuous development of digital signal processing technology and audio codec technology, in-car audio systems can achieve higher audio resolution, lower distortion, and a wider dynamic range, providing users with clearer and more realistic sound effects. Moreover, intelligent features such as voice interaction and in-car entertainment systems are continuously integrated into in-car audio, making it not just an audio playback device but also a part of the intelligent automotive ecosystem.

The concept of intelligent cockpits has emerged, with a rapid increase in the number of speakers per vehicle, continuous innovation and upgrading of automotive audio components, and further expansion of application scenarios, all of which greatly ensure the incremental space in the automotive acoustic market. According to predictions from the Gaishi Automotive Research Institute, the market size of in-car acoustic systems will exceed 90 billion yuan by 2025, demonstrating significant market potential. Currently, many domestic participating manufacturers are enhancing brand awareness and market share through technological innovation, cost control, and market expansion, achieving growth and occupying a place in the in-car audio market.

According to Zhitong Finance APP, AAC Technologies has 30 years of R&D and production experience in the acoustic field, with deep technical accumulation in the design, manufacturing, and audio processing technology of acoustic products such as miniature speakers. This enables the application of advanced acoustic technology from the consumer electronics field to the automotive sector, developing innovative products such as miniaturized, high-performance, and thin in-car speakers, laying the foundation for high-quality performance of in-car acoustic systems and bringing unique advantages.

## Horizontal and Vertical Layouts Entering the Automotive Acoustic Field, Providing Differentiated Solutions

As a company with deep accumulation in the acoustic field, AAC Technologies provides acoustic components and solutions for 90% of flagship smartphones globally. Over the years, it has actively expanded its business boundaries and explored new development opportunities through various means. Recently, it has partnered with several popular domestic new energy vehicle models to launch innovative speaker products and quickly implement them in vehicles.

Since 2018, AAC Technologies has begun its layout and technical development in the automotive field, completing the horizontal expansion of acoustic products from consumer electronics to automotive standards. Based on its unique global speaker technology, AAC Technologies has developed components and supporting solutions suitable for intelligent automotive acoustics. For example, the self-developed USS/VFW speakers are designed to be miniaturized, lightweight, and high-performance, allowing flexible installation in various locations within the vehicle, reducing space occupation while meeting audio needs in diverse scenarios such as gaming, movies, and meetings, providing more freedom and possibilities for the design of automotive audio systems.

Among them, the USS miniature speaker breaks through physical layout limitations with its small size, and the embedded speakers in the headrests of the driver and passenger seats support independent audio source playback, creating an ultra-close sound area for passengers and further enhancing personalized and immersive listening experiences. The VFW thin vibration-damping bass/sub-bass speaker improves low-frequency performance through a dual voice coil offset design, addressing issues of door resonance and sound leakage In terms of expanding its automotive customer base, AAC Technologies has achieved results that exceed market expectations. The mobile acoustic production line at AAC Technologies' Changzhou base has been successfully upgraded to an automotive acoustic production line, primarily supplying the popular Xiaomi SU7 model under Xiaomi Automotive, which uses VFW thin vibration-damping subwoofer products. These products feature ultra-thin design, reasonable layout, and strong immersion, meeting the upgrade demands of smart cockpits in new energy vehicles. Additionally, the Nezha S model launched in 2022 also utilizes AAC Technologies' innovative speaker products.

![1736303292270.jpg](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250108/1736303308176788.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

AAC Technologies' speakers work seamlessly with the company's amplifier products and audio signal processing technologies, effectively enhancing the in-car audio experience. This also reflects that after expanding its product line, AAC Technologies has vertically iterated its entire product line, providing overall service upgrades in product iteration, software development, and technical support.

In terms of amplifiers, AAC Technologies offers a range of in-car amplifier products from basic to advanced levels. Among them, the Amplifier and Booster product categories integrate lightweight and compact designs, supporting multi-channel output, high-power playback, strong heat dissipation design, ensuring device stability and high efficiency under high load conditions.

For software support services, AAC Technologies has multiple exclusive audio algorithm solutions that empower hardware through software, delivering an immersive audio experience with pure sound quality, clear details, and rich spatial information, meeting users' demands for high-quality in-car audio systems. It also has a professional testing team certified with the "Golden Ear" certification, providing professional tuning services for in-car audio systems to ensure optimal sound performance. The overall acoustic solution for the Geely Galaxy E5 is provided by AAC Technologies, featuring "Boundary-less Sound," and has received high praise from users since its launch.

![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250108/1736303317403568.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Furthermore, based on customer needs, AAC Technologies' professional engineering team conducts overall planning and design for automotive acoustic systems. This involves determining the number, type, size, and layout of speakers, designing the power and performance parameters of amplifiers, as well as planning audio signal processing algorithms and tuning schemes, ensuring that the acoustic system achieves the best sound quality and sound distribution within the limited space of the vehicle.

## Enhancing Global Competitiveness, Acquiring Leading Automotive Acoustic Company PSS

In February 2024, AAC Technologies announced the completion of the acquisition of 80% equity in PSS (Premium Sound Solutions), which has been consolidated into its financial statements. This acquisition is a strategic move by AAC Technologies to accelerate diversification in the automotive industry and enhance its audio solution portfolio ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250108/1736303332329921.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

PSS is a global leading supplier of acoustic components and audio systems, with over 50 years of operating history. It is a first-tier supplier to diversified global automotive original equipment manufacturers (OEMs), with deep resources and barriers with clients, having over 10 years of long-term cooperation experience with major European and American car manufacturers, accounting for approximately 15% to 20% of the entire market share, producing over 110 million speakers in 2023.

The announcement shows that PSS has very solid finances, with annual revenue between 450 million and 500 million euros, maintaining a gross profit margin of around 20%, and the company's overall debt is very low, with high operational efficiency, making it a net cash flow company. After consolidation, it will have a positive impact on AAC TECH overall.

Regarding this acquisition, AAC TECH's management has stated that the company has been deeply engaged in the automotive field for at least three years, mainly focusing on innovative speaker products, already having hundreds of designated projects and scale. PSS primarily produces automotive speakers, which can synergize well with AAC TECH's business, enriching its product structure and achieving a significant business transformation.

Currently, the synergy between PSS and AAC TECH is gradually becoming apparent. PSS's products cover high-performance innovative speaker products of various specifications, including low, medium, high, and full frequency, and are actively expanding their share among global first-tier automotive companies. AAC TECH, leveraging its technological and manufacturing advantages accumulated in consumer electronics, has the capability for rapid introduction of new product categories among domestic OEMs.

As for the barrier characteristics of PSS's products, industry insiders believe that the barriers in the automotive field are relatively deep, with the entire industry cycle differing from that of smartphones. In contrast, smartphones may iterate every year or even every six months, while automotive products, especially those from Europe and America, may have a product cycle of 3 to 5 years. Some new automotive brands may have cycles of 1.5 to 2 years, but overall, it is a longer period.

## Rapidly introducing new automotive brands, with sustainable growth potential

In terms of downstream customer synergy, AAC TECH may accelerate its expansion into the domestic market while consolidating its overseas share. As a first-tier supplier of components to several automotive manufacturers, PSS can tailor audio system solutions based on the positioning of different automotive brands, vehicle characteristics, and the needs of target customer groups, integrating the audio system with the overall design and style of the vehicle.

According to industry chain news, PSS's clients previously covered mainstream automotive brands, including Audi, BMW, Mercedes-Benz, Land Rover, Buick, etc. After being acquired by AAC TECH, there has been significant progress in applications among new automotive brands, such as XPeng MONA M03, Aito M9, and Li Auto L series, all of which use PSS's speaker products.

In addition to collaborating with automotive brands for customization, PSS's speaker products can also meet the personalized audio effect needs of different users to some extent. For example, the PSS audio systems equipped in some high-end models support users in adjusting sound effects, allowing them to modify parameters such as volume, balance, bass enhancement, and treble enhancement according to their preferences Some models also offer a variety of preset sound effect modes for users to choose from, such as "Original Sound HiFi," "Immersive Surround," and "Vast Space," to meet users' needs in different music genres and listening scenarios.

In the future, competition among automotive manufacturers will become increasingly fierce. Against the backdrop of severe homogenization in appearance, size, and configuration, the perception and interaction experience of the cabin will become an important dimension of differentiated competition. It is becoming a trend for automotive manufacturers to equip more speakers, and the in-vehicle sector, as a new growth point in the consumer electronics industry, will possess strong sustainable growth potential.

AAC TECH can provide automotive manufacturers with comprehensive in-vehicle acoustic solutions, ranging from hardware to software, from architectural design to system debugging, to meet the high-quality and high-performance requirements of automotive manufacturers for in-vehicle audio systems, thereby enhancing the depth and breadth of cooperation with automotive manufacturers. In fact, after completing the acquisition of PSS, AAC TECH has quietly become one of the most competitive leading suppliers of in-vehicle acoustic solutions globally

### Related Stocks

- [02018.HK - AAC TECH](https://longbridge.com/en/quote/02018.HK.md)
- [MBGYY.US - Mercedes-Benz Group AG](https://longbridge.com/en/quote/MBGYY.US.md)
- [600977.CN - CFG](https://longbridge.com/en/quote/600977.CN.md)
- [301236.CN - iSoftStone](https://longbridge.com/en/quote/301236.CN.md)
- [300978.CN - DJCORP](https://longbridge.com/en/quote/300978.CN.md)
- [09868.HK - XPENG-W](https://longbridge.com/en/quote/09868.HK.md)
- [688588.CN - LZRJ](https://longbridge.com/en/quote/688588.CN.md)
- [001330.CN - BONA](https://longbridge.com/en/quote/001330.CN.md)
- [01810.HK - XIAOMI-W](https://longbridge.com/en/quote/01810.HK.md)
- [BMWYY.US - BAYERISCHE MOTOREN WERKE AG ADR EACH REPR 0.33333 SHS SPONSORED](https://longbridge.com/en/quote/BMWYY.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| AAC Technologies Files Director List with HKEX | AAC Technologies Holdings Inc. has submitted an updated director list to the Hong Kong Stock Exchange. The executive dir | [Link](https://longbridge.com/en/news/273814660.md) |
| CICC Reaffirms Their Buy Rating on Suzhou Ribo Life Science Co., Ltd. Class H (6938) | In a report released yesterday, from CICC maintained a Buy rating on Suzhou Ribo Life Science Co., Ltd. Class H, with a  | [Link](https://longbridge.com/en/news/276199846.md) |
| Saudi CMA Approves Public Offering Of Namaa Waqf Fund | SAUDI CMA :APPROVES PUBLIC OFFERING OF NAMAA WAQF FUND | [Link](https://longbridge.com/en/news/276066018.md) |
| Powerful storm in Redding bringing high wind, heavy rain, snow | A powerful winter storm is impacting Redding and Shasta County, bringing strong winds, heavy rain, and potential snow. W | [Link](https://longbridge.com/en/news/276082455.md) |
| French police raid Arab World Institute in Epstein-linked probe into Jack Lang | PARIS, Feb 16 (Reuters) - French police on Monday searched the Arab World Institute in Paris in connection with an inves | [Link](https://longbridge.com/en/news/276051725.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
