---
title: "My deepest impression from this year's Beijing Auto Show is that a paradigm shift in the automotive "
description: "My deepest impression from this year's Beijing Auto Show is that a paradigm shift in the automotive industry is inevitable.1) For traditional ICE vehicles, the key bottleneck lies in the engine + tran"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/20750744.md"
published_at: "2024-04-26T01:24:37.000Z"
author: "[朱玉龙-YL](https://longbridge.com/en/profiles/11273494)"
---

# My deepest impression from this year's Beijing Auto Show is that a paradigm shift in the automotive 

My deepest impression from this year's Beijing Auto Show is that a paradigm shift in the automotive industry is inevitable.

1) For traditional ICE vehicles, the key bottleneck lies in the engine + transmission system. Automakers control these to capture the majority of profits, while other suppliers earn smaller margins based on this foundation.

2) BEVs: For pure electric vehicles, the bottleneck shifts to batteries. Automakers without battery capabilities struggle to control gross margins. In other words, as Akio Toyoda observed, the transition from ICE to BEV leaves automakers without clear bottlenecks, making it difficult to distribute profits across the supply chain as before.

3) Smartization: The smart vehicle bottleneck originally centered on software + chips. With increased investment in autonomous driving this year, computing power has become the core resource. This makes it even harder for traditional automakers to establish strategic control points.

After China's thorough exploration of these paradigms, the core value proposition for automakers becomes clear: without strategic bottlenecks or market positioning, they can only rely on prolonged timelines to complete their transformation.

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