(Yicai) Aug. 21 -- Horizon Robotics has entered the European intelligent driving chip market through its tie-up with the world's largest automotive supplier Bosch, according to a source at the Chinese firm.

The overseas version of the Zeekr 7GT, which went on sale in 16 European countries last month, uses an intelligent driving system developed by Bosch based on Horizon Robotics' Journey 6M chip, the source told Yicai. The shooting-brake model is priced from EUR45,990 (USD53,788).

Horizon Robotics has also established mature partnership channels through which it works with Toyota Motor via auto parts maker Denso, as well as with German and other global carmakers via Bosch or leading tire manufacturers Continental, the source pointed out.

In addition, Horizon Robotics has formed the CARIZON joint venture with Volkswagen Group, upgrading its business model from simply supplying chips to also providing "licenses to its AI foundation models," the source said, adding that this has further deepened its integration with the German automaker's global operations.

Chinese intelligent driving chips have entered the previously closed supply chains of major international carmakers amid the profound changes happening in the global auto industry.

Intelligent driving systems built around Chinese chips offer highly competitive costs, the source pointed out, noting that if Japanese carmakers continue to rely on foreign chip suppliers, it will be difficult for them to provide comparable levels of smart driving features at the same price, directly undermining their competitiveness in emerging markets.

Consumers are also demanding rapid iteration of intelligent driving experiences, the source said. Automakers that continue to rely on overseas chip ecosystems will face additional pressure from slower software upgrades and higher costs, the person stressed.

Chinese chips' biggest attraction is that, for the same level of smart driving capability, an integrated advanced driver-assistance system solution built around them costs about 25 percent to 27 percent less than comparable overseas products, the source noted. This advantage stems from their efficient architecture and from China's mature domestic supply chain, generating cost benefits via large-scale mass production, the source added.

However, Chinese intelligent driving chips still face multiple challenges in overseas markets, including regulatory compliance. The European Union is one of the world's most stringent jurisdictions when it comes to data security regulations.

Against this backdrop, having Chinese chip developers supply the core computing platform while their international partners handle the remaining parts of the solution is the most viable model for taking Chinese intelligent driving chips overseas.

Editors: Tang Shihua, Martin Kadiev