Chongqing - As China’s new energy vehicle (NEV) sector evolves into a software-driven industry, rising research and development costs pose new challenges for automakers. Open-sourcing basic software is emerging as a solution, helping companies reduce expenses and improve efficiency.

On August 29, the 2025 Intelligent Vehicle Basic Software Ecosystem Conference kicked off in Chongqing. (Photo/2025 Intelligent Vehicle Basic Software Ecosystem Conference & The 4th China Automotive Chip Conference)

Open source means both sharing resources and enabling collaboration. At the 2025 Intelligent Vehicle Basic Software Ecosystem Conference, Liu Hongqian, General Manager of iSoft Infrastructure Software Co., Ltd., explained that in this field, open source mainly applies to “basic software,” such as operating systems. She noted that software is layered: the modules closest to the user are highly personalized, while the foundational layer provides common functions used across many applications.

She compared it to construction: basic software is like the reinforced concrete framework of a building. Once the structure is in place, companies are free to decorate and customize it as they wish—whether as a meeting room or a bedroom.

Ren Wei, Deputy Chief Engineer at the Intelligent Electrical/Electronic (E/E) Development Center of Dongfeng Motor R&D Institute, added that openness requires three steps: releasing the source code, ensuring transparency in the development process, and creating a fair, open, and neutral platform.

China’s auto industry is now rapidly moving toward intelligence. He Gang, Vice President of Changan Automobile, noted that with the rise of 5G and AI, cars are no longer just vehicles but are evolving into “smart devices.” Future models, he said, will function like mobile supercomputers—storing energy, collecting and transmitting data like sensors, and even serving as new spaces for mobility and daily life.

In this transformation, software plays a critical role. Foundational programs such as operating systems have already become the digital backbone of vehicles. According to Deloitte, by 2030, software is expected to account for half of total vehicle material costs.

Yet the trend also brings challenges. Li Yan, Head of the Basic Software Task Group at FAW Group’s R&D Institute, pointed out that NEV software development is complex and often requires collaboration across multiple companies.

At the same time, the industry still lacks unified standards for interfaces, security, and testing. This leads to duplicated efforts, higher testing costs, and slower mass production.

For automakers, adopting or switching between different operating systems is especially demanding, requiring adjustments in staffing, skills, and toolchains. This not only increases costs but also lengthens production timelines and complicates certification.

Liu emphasized that as NEVs become increasingly software-driven, open source can help automakers lower costs and improve efficiency. Zhang Xiaoxian, Deputy General Manager of iSoft Infrastructure Software Co., Ltd., added that open source offers three major advantages.

A consumer has a static on-site experience of a connected intelligent electric vehicle at the 2024 World Smart Industry Expo. (Photo/Sun Fanyue)

Open source first breaks down barriers between companies, expanding R&D from individual enterprises to the entire industry—and even globally—dramatically reducing costs and boosting efficiency.

It also reshapes traditional supply chain relationships. Instead of the one-way model where suppliers develop and automakers consume, participants across the value chain—including suppliers, developers, and OEMs—can now contribute directly by providing requirements, designs, and even code. For instance, FAW has already contributed security components to the emerging open-source community known as EasyXMen.

Finally, open source transcends national boundaries. As a global public digital resource, it not only serves the automotive sector but can also extend to other smart terminal industries such as low-altitude aircraft and humanoid robots. These sectors share similar technical foundations, allowing for a common supply chain and opening new market opportunities.