Tech Talk is a series of interviews that introduce you to some inspiring personalities within and outside of MD and the world of technology, innovation, and more.
In this edition, we met up with Youliang Zhuang, Director of Product Development and Management at MD Asia-Pacific (Beijing) ELECTRONICS Co., Ltd., to talk about the future role of the Chinese automotive industry and how the cultural differences influence consumer behavior and customer strategies.
Youliang, please tell us a little bit about yourself. What has been your career path so far and what brought you to MD ELECTRONICS?
I started my engineering career in 2005 and so far, I have specialized in the technology of connection systems, power and signal transmission. I joined MD to lead the APAC R&D team and enjoy working on developing our engineering service for our customers.
I am 42 years old, living happily with my wife and our two kids. For leisure, I enjoy spending time with my family, bike riding with friends, reading philosophy books and playing video games.
How has the Chinese automotive industry evolved over the past decade, and what is its current influence on the global market?
The Chinese car industry is the second most important industry, after real estate. It has grown exponentially over the last two decades with the number of cars made and sold in China increasing tenfold.
The car industry in China has benefited from people’s growing incomes, integrated supply chains and advantageous government policies. The evolution of the car industry is in full swing and there are two kinds of development which we need to distinguish between:
The traditional „Internal Combustion Engine” (ICE) and the „New Energy Vehicle“(NEV). The Chinese Government has been driving companies to develop NEV technology since 2020, with many big players focusing on this specific area. NIO, Xiaopeng, and Huawei, to name just a few, have invested heavily in technology for electrical powertrains and autonomous driving to create a global influence through technical advancement.
What are the unique usage scenarios and consumer behaviors in the Chinese automotive market compared to Europe and the USA
In China there is definitely a family first culture and a totally different thought process behind buying a car compared to Europe or the US. In China, when you buy a car your motivation generally stems from a family need not a personal one. That is the reason why SUVs are the starting point for the China Vehicle, it is not because it can cross rivers and mountains, but because of its bigger size. Enabling the transport of whole families.
When it comes to the interior design of NEVs (New Energy Vehicles), local engineers invest more energy into in-car comfort for passengers. For example, your wife can lie down in the co-drive seat and watch TV, and your kid can play video games with VR glasses, in the back.
Another interesting difference between China and Europe or the US is the idea that driving is fun.
We all know the famous slogan „Freude am Fahren“ or „Sheer Driving Pleasure“. This slogan from a well-renowned global brand stands for quality and luxury vehicles, also in China. However, many Chinese consumers are not interested in driving performance. They drive a car to get from A to B, so this idea of buying a nice car to cruise around in does not appeal to them. The younger generations shall for sure choose autonomous vehicles over traditional modes of transport in the future.
Let’s move from the consumer viewpoint to the industry outlook. What are the specific expectations and requirements from Chinese OEMs and Tier 1 suppliers regarding wiring systems, connectors, and data cables?
The expectations and requirements can be summarized in 3 points: cost, quality and new technology.
MD has been very welcomed by Chinese OEMs over the last 5 years and is seen as a global high quality supplier. We highly appreciate this level of trust and work hard every day to keep it.
The majority of Chinese OEMs wish to source the connector system (including PCB Header and cable connectors) from one supplier. It is widely considered a concern to mate different supplier products. This is a totally different approach to that of the European and US OEMs, whose sourcing strategy relies on building up second source suppliers.
Unlike in other markets, Chinese OEMs want to win the technological advantage to distinguish themselves from traditional vehicles (ICEs). They already use USB TYPE C in their car models to transfer high-resolution display content widely replacing HSD in the vehicle. They have, furthermore massively adopted ethernet technology. All elements of the central computing architecture are on the table for development and MD is in discussions with our customers to offer our expertise at each stage.
How is MD adapting its strategies and technologies to cater to the Chinese automotive market’s unique demands?
We are in constant communication with our Chinese customers and are currently working on adapting our portfolio and technology to the needs of our Chinese OEM customer base.
MD is also focused on building deeper engineering relationships to Chinese OEMs with regards to new technologies, especially for our own C-KLIC connector system and Automotive Ethernet. Here we are seeing a shift in our main contact persons. The On-board Architecture Engineer is becoming an important contact person especially with regards to potential new usage scenarios.
What is MD doing to strengthen its position in the Chinese automotive market?
As mentioned above we are working on our localization strategy for China and investing in product development and partnerships for new technologies. In the future car safety and security will become even more essential, so MD will continue to supply high-quality data transmission solutions to our customers and expand our expertise to ensure we remain a trusted technology partner for the automotive industry. These are the goals of the MD APAC R&D centers.
Youliang, many thanks for this very interesting conversation!
Growth, Innovation, and Localization – MD`s strong role in China’s Automotive Market
China’s automotive industry has recently experienced exponential growth. Favorable government policies, particularly in the development of new energy vehicles (NEVs), are increasing China’s global influence. With a focus on family needs and comfort over driving pleasure, consumer demands contrast with those in Europe and the U.S. and play a major role in shaping the future of the industry. Chinese OEMs and Tier 1 suppliers have specific expectations for wiring systems, connectors and data cables, focusing on cost, quality and new technology. Recognized as a high-quality global supplier, MD is working on adapting and focusing on the technological needs of our Asian customers, expanding our business in the Asia-Pacific region and emphasizing the importance of stable supply chains and technological advancements such as USB Type C and Automotive Ethernet.
High-performance, extremely reliable data connections are the backbone of tomorrow’s mobility. MD ELEKTRONIK is at the forefront of these technologies and leading the way with an international network of experts. Contact us now and find out more about the latest innovations!
Youliang Zhuang
Youliang has worked in connector development for 20 years. Before joining MD Asia-Pacific (Beijing) ELECTRONICS Co., Ltd in 2023, he was a connector expert at one of China's largest companies. He is currently Director of R&D in China, leading product development, project management, and product management. Youliang is based in Shanghai. He has developed his department and established product development and product management in China. He also sees himself as a communicator and works closely with the MD headquarters in Germany. Youliang is proud to work at MD China and believes in the company's potential. He is excited about what MD has to offer and the impact our products and services can have. For leisure, he likes spending time with his family, bike riding with friends, reading philosophy books and playing video games.