Business Development Strategies for Vehicle-Road Collaboration Products: A Case Study of a Leading Automotive Component Provider

Jiayuan Sun; Tachakorn  Wongkumchai; Uswin  Chaiwiwat

Authors

Jiayuan Sun Dhonburi Rajabhat University
Tachakorn Wongkumchai Dhonburi Rajabhat University
Tachakorn Wongkumchai Dhonburi Rajabhat University

Keywords:

Vehicle-Road Collaboration, V2X, Business Development Strategy, Strategic Partnership, China Automotive Industry

Abstract

The research objectives were 1) to explore the macro environment, industrial structure, and competitive landscape of China’s Vehicle-Road Collaboration (VRC/V2X) industry, and 2) to evaluate the core competencies of the case company and propose appropriate competitive and business development strategies for achieving sustainable growth. The study employed a descriptive and analytical multiple-case design. The samples comprised the case company (a leading automotive component provider) and two benchmark enterprises (Baidu and Huawei). The instruments used were four established strategic frameworks: PEST analysis for macro-environmental assessment; the SCP-G (Structure-Conduct-Performance-Government) framework for industry structure evaluation; SWOT analysis for internal capability assessment; and a multidimensional scoring model (based on Simple Additive Weighting) for target city selection. The data were analyzed using systematic qualitative content analysis, strategic comparative analysis across the three cases, and expert validation through semi-structured interviews with a five-member panel (cumulative 75 years of industry experience, representing Huawei, Baidu, CSAE, Deloitte, and a top-5 Chinese OEM).

The findings revealed that 1) China’s V2X industry was characterized by strong governmental support (20 pilot cities, RMB 1.6 trillion projected investment), 30–40% gross margins, and intense competition from technology giants (Huawei, Baidu); 2) the case company possessed distinctive strengths in automotive domain expertise, manufacturing capabilities, and OEM relationships, but faced a critical “Cloud-V2X Capability Gap” – the absence of a proprietary cloud platform and limited AI capabilities – which independent development would require 5–10 billion RMB and 3–5 years to address; and 3) the Partnership-led Growth Model, combining Market Infiltration (Beijing, Wuhan, Nanjing) with Lateral Entry (Chongqing, Changchun) through strategic alliances with local cloud service providers, represented the optimal and only viable pathway for sustainable growth, as unanimously validated (100% consensus) by all five experts.

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