When it comes to Sony’s car-making business, most people in my circle had a similar reaction when hearing the news:

Behind this reaction, the first question that comes to everyone’s mind is: Is Sony really making cars?

Let me start with my conclusion: there is some feasibility to Sony making cars. But let’s put the conclusion aside for now and take a look at what Sony’s car is all about.

Here’s the situation: At this year’s CES (Consumer Electronics Show), Sony unveiled an electric concept car called the Vision-S, which caused a stir in both the automotive and technology circles. Below are some images of the car’s exterior:

Image source: The Verge

First, my impression of the car. When I first saw the exterior of the Vision-S, I had a sense of familiarity. It wasn’t until Skywell Automotive picked up on the news that I realized why. It seems that a similar design was seen at last year’s Shanghai Auto Show. Take a look at the comparison:

After that, I took a closer look at the interior and it reminded me of the designs of various cars: the 50-inch full touchscreen of the Byton M-Byte, the four-screen interaction of the Li Xiang ONE, and the electronic rearview mirror of the Audi e-tron. In addition to these two types of screens, there are also two large touchscreens installed behind the headrests. It seems that some elements of smart new energy vehicles are there, but there’s a lack of innovation.

Earlier, I mentioned that it is a concept car, as reported by The Verge. However, from the parameters disclosed on Sony’s official website, this car looks more like a “prototype” than a “concept car”.Here’s a brief introduction to the meaning of a prototype. According to the explanation I found on Wikipedia, a prototype refers to a model of a new technology made before it goes into mass production, used to test product quality and ensure normal operation. Simply put, a prototype car is somewhere between a concept car and a production car, closer to the latter.

As for this car, the official website has revealed its specifications: the length, width and height of the body are 489519001450 mm, and the wheelbase is 3000 mm. Lengthwise, it is 84 mm shorter than the Model S, but the wheelbase is 60 mm longer than that of the Model S, which most people would consider a mid-to-large size sedan.

In terms of power, it will be equipped with two 200 kW electric motors and a dual-motor four-wheel drive system. The 0-100 km/h acceleration time is 4.8 seconds, and the top speed can reach 240 km/h. The curb weight of the entire vehicle is 2350 kg.

In addition, according to a report by The Verge, the Vision-S has 33 different sensors both inside and outside (including CMOS and ToF), as well as a 360 Reality Audio sound system, among other features. To bring this car to market, Sony has partnered with Bosch, BlackBerry, NVIDIA, Qualcomm, and other manufacturers.

Now let’s take a look at how netizens on Weibo and abroad have reacted to this car:

[comments with pictures]

In summary, many people are surprised and full of expectations for this car. Some netizens even commented, “I think all Japanese car companies are angry, Sony will destroy them in Japan.” But actually, there is a preparedness behind the surprise.

Sony has been preparing for this moment long before they unveiled this car. In 2017, Sony had already released an electric concept car called the SC-1, which looked like a similar box shape. However, at that time there were already too many new car manufacturers on the market, and the SC-1 was drowned out among them. The formation of the SC-1 concept even dates back earlier.

SC-1 Concept Car

According to Sony, “the SC-1 concept car is an experimental vehicle. With the SC-1, Sony is exploring a new approach to cars that is different from traditional ones. Over the past decade, this radical concept has gradually taken shape in a studio in Tokyo that is not open to the public. Now, the first prototype is undergoing road testing in Okinawa, which is the first step towards actual implementation.”

From the official statement, we can see that Sony was well-prepared and anticipated the arrival of the new era of electric vehicles, so they began to deploy in this area early on. In August 2019, Sony officially confirmed that they would launch the SC-1 concept car into mass production and enlisted the help of Yamaha. However, it is known that the SC-1 will not be mass-produced for sale, but may be delivered to the leisure industry for use as a park vehicle.

I believe that after years of technology accumulation, Sony will not stop at this point and will release true mass-produced vehicles. From this perspective, Sony’s development of the Vision-S was not accidental.

Going back to my earlier conclusion: Sony’s entry into the car manufacturing industry has a certain feasibility. First of all, the trend toward electric vehicles is irreversible. Looking at the macro situation, I believe that the world’s trend toward electric vehicles is irreversible.

The Trend Toward Electric Vehicles Is Irreversible

When it comes to the trend toward electric vehicles, the first thing that comes to mind is Volkswagen. On November 15, 2019, Volkswagen announced that it would invest 60 billion euros (approximately RMB 467.5 billion) in electrification, hybridization, and digitization between 2020 and 2024. For this purpose, Volkswagen has also launched a brand new MEB platform.

Volkswagen ID.3The investment of 60 billion euros means that the Volkswagen Group has put almost four years of profits into the new energy market, which shows Volkswagen’s determination to enter the new energy market. This is just one part of Volkswagen’s new energy plan. If you want to learn more about Volkswagen’s specific analysis of transformation, you can read this article “Volkswagen’s Gambling in the 50 Years of Prosperity”.

In terms of high-end brands, Volkswagen’s subsidiaries, including Porsche, Audi, Mercedes-Benz, and BMW, have all introduced their own new energy vehicle models, such as Porsche Taycan, Mercedes-Benz EQC, BMW iNEXT (not yet in mass production), and Audi e-tron.

Among them, BMW showed part of its future development plan at the first NEXTGen Summit on June 25th last year. It is expected to launch 25 new energy vehicle models by 2023, nearly half of which are pure electric models.

In December last year, Sun Wei, Vice President of Corporate Affairs of BMW Greater China, revealed to the media that by the end of 2019, BMW’s cumulative sales of new energy vehicles in China had exceeded 50,000 units, ranking first in China’s high-end new energy vehicle market. Sun Wei also said that BMW will continue to firmly implement its strategy of promoting electric travel.

In addition, BMW announced on Twitter in the same month that its global sales of new energy vehicles had reached 500,000 units. Oliver Zipse, Chairman of the BMW Board of Directors, also issued a statement: “500,000 vehicles are the best proof: our various electrified vehicles are meeting the needs of customers, and BMW is accelerating significantly.”

BMW’s attitude is clear: “We certainly need to develop in the new energy field, and we are already working hard on it. Moreover, we want to make it even bigger. 500,000 is just the beginning.” BMW’s determination once again verifies the irreversibility of the trend.

Other industry giants have also joined in.1. Thirdly, in addition to non-industry companies like Sony entering the car manufacturing industry, there are also some other industry giants investing, such as real estate giant Evergrande, specifically:

In August 2019, Evergrande New Energy Automotive – Hengchi appeared energetically, with the announcement from Xu Jiayin at the Evergrande New Energy Automotive global strategic partnership summit in November, that the investment budget for Evergrande New Energy Automotive is RMB 45 billion over the next three years. Meanwhile, they will establish ten large-scale production bases in China, Sweden and countries along the “Belt and Road”, and simultaneously develop 15 new car models.

The first car of Evergrande, the “Hengchi 1”, will officially debut in the first half of 2020, and the entire Hengchi series will achieve mass production from 2021.

Although Evergrande’s way of manufacturing cars is not like traditional car companies or new manufacturing forces. Simply put, they buy the core technologies that they can buy, and cooperate if they can’t buy them, but they are still moving towards new energy vehicles.

Looking back at history, every industrial revolution behind follows an energy situation shift, and Evergrande did see the huge market for new energy vehicles by investing in it and wants to seize the opportunity and rise to the top in this historic turning point.

There are many such examples, but all signs indicate that the world is moving towards new energy vehicles, which is an irreversible trend. For any participant, this is both an opportunity and a challenge.

After discussing the trend, let’s take a look at the situation of the Japanese pure electric vehicle market, and see how feasible it is for Sony to manufacture cars.

The Japanese Pure Electric Vehicle Market Situation

As a Japanese local company, let’s first focus on the Japanese market instead of the globalization issue regarding Sony’s manufacturing of cars.

Looking at the timeline, Japan’s electric vehicle started relatively early. At the end of 2010, Nissan’s pure electric vehicle LEAF was launched, and the Japanese electric vehicle market has been on the rise since 2011, but due to the serious suppression of hybrid electric vehicles, the progress of electric vehicles has been relatively slow.

Nissan Leaf

After all, battery technology was not as mature as it is now. The weak endurance and slow charging speed were realistic problems at that time, and the infrastructure layout was not as developed as today, not to mention issues such as people’s awareness of new energy vehicles and high battery costs.

However, what is the current status of Japan’s pure electric vehicle market?

First, let’s take a look at the new energy vehicle profile of several major Japanese car companies:

Toyota, who insists on hybrids

From Toyota’s official website in Japan, they have been promoting hybrid power. At present, they mainly produce hybrid vehicles and fuel cell vehicles. However, they have very few pure electric vehicles, and it seems that they do not plan to delve into the field of electric vehicles now.

Honda, commits to emissions regulation

Next is Honda. Compared to Toyota, Honda is doing better in the field of pure electric vehicles. After all, it has launched new products like the Honda e. However, Honda CEO, Hachigo Takahiro, once said: “The technology of car batteries has reached a bottleneck. The demand for electric cars will not increase significantly in the short term. The launch of Honda e is only to comply with emission regulations.” Judging from this, “the two Japanese car companies” will not vigorously develop the field of pure electric vehicles in the short term, which is also an opportunity for Sony.

Honda e

Nissan, in need of innovation

Looking again at Nissan, compared to the previous two, Nissan has been laying out its strategy in the field of pure electric cars earlier. Nissan’s attitude towards pure electric vehicles is to encourage more customers to use them. Since its launch in 2010, the LEAF has been the best-selling pure electric car in the global electric car market. However, under the current environment of smart electric cars, the competitiveness of the LEAF has begun to show signs of decline. “The direction of becoming more intelligent is a question that Nissan needs to consider.”

Overall, Japanese car companies still mainly focus on hybrid vehicles, and most have only just begun to develop intelligent pure electric vehicles. This is also an opportunity for Sony. By launching the Vision-S first in Japan, if it succeeds, it can seize the initiative in the new market just as China’s top new electric car manufacturers did.

After discussing the feasibility of Sony’s car-making plans, I am also thinking about a question: at the current bottleneck phase of new energy vehicles, can top electronic consumer brands like Sony help them break out of their current situation?

Giant Tech helps electric vehicles take off

Although Sony currently has enough potential to break away from traditional electronic consumption and move towards new energy vehicles, it also faces the risk of falling into a predicament at any time. Before Sony opened the door to car-making, another giant in the home appliance industry, Dyson, was unlucky.

Dyson, lacking commercial feasibility

In the home appliance field, Dyson has established a high-end brand image of “Home Appliance Hermes” through products like hair dryers and vacuum cleaners. However, Dyson does not seem satisfied with home appliances only, and has been pursuing car-making for several years. However, to their disappointment, car-making is a “money pit”, and it is difficult to persevere without a large amount of funds.In October 2019, James Dyson, the founder of Dyson, announced in an email to all employees that the ￡2.5 billion (approximately RMB 22.8 billion) electric car project was terminated. The first batch of vehicles was expected to be released in 2021, but ultimately failed due to “a lack of commercial viability.” In other words, the cost of making cars is enormous and it is difficult to make money in a short period of time.

Apart from Dyson, there are many new car-making companies that have failed, mostly due to the inability to obtain timely funding, resulting in the failure of car production. Therefore, funding is the core issue.

Apple may become the game changer for car-making

Speaking of funding, Apple is not short of money. Apple’s car-making plan has long been widely reported. In fact, Apple’s car-making dream began during Steve Jobs’ time. Steve Jobs publicly stated that “we have the platform to design a good car, and we will build a car in the near future.”

There is no smoke without fire. In 2013, Apple announced its entry into the auto industry and launched the “iOS in the Car” program, starting with its software expertise. Later, the CarPlay system was developed.

In 2015, Apple recruited employees from Google, Mercedes-Benz, General Motors, and Tesla to form the Apple car development team, and launched the “Project Titan”. There were many speculations about this project.

In January 2016, MacRumors reported that Apple had registered three domain names: apple.car, apple.cars, and apple.auto. Elon Musk also confirmed the rumors about Apple’s car project, saying, “It’s an open secret” and “Apple has recruited more than 1,000 engineers, so it’s not so easy to hide their car project.”

By May 2018, MacRumors reported that according to data from the California Department of Motor Vehicles (DMV), Apple currently has 62 cars and 87 drivers. Apple seems to be actively developing autonomous driving technology.

Image source: MacRumors

Since then, Tim Cook has also stated that “Apple will focus on autonomous driving instead of building the car as a whole.” Therefore, the cloud of doubt still hangs over Apple’s car-making plan till this day.# What kind of card will the ultimate boss Apple finally play?

There have been always questions about what kind of card the ultimate boss Apple will finally play. Even if Apple’s autonomous driving technology is strong, if it launches new cars, there is still Tesla as the biggest challenger ahead of the world, not to mention that Apple’s start is much later than Tesla’s.

On the other hand, technology giants like Apple and Sony have a common characteristic, which is having a strong technical reserve. For the automotive industry, technology is the first productive force. In this context, it is unclear whether they can bring out a new energy vehicle that breaks conventions. Apple might suddenly jump out like Sony and release a car one day, which will definitely surprise everyone.

Worst-case Scenario: Sony Cannot Make Cars

Finally, I believe someone will definitely ask: What if Sony cannot really make cars?

Sony definitely has a way out. As a top enterprise that has survived in the tides of history, they are definitely not going to give up easily. Simply put, if making a complete car does not work, they can dismantle it and sell it as parts supplier.

In the current new energy market, the demand for ADAS hardware and in-car entertainment components is increasingly strong, and Sony has demonstrated their advantage in these two aspects with Vision-S, namely camera sensors and in-car entertainment. If they continue to strengthen these two points in the future, they will not lose too much.

Imagine that in the future when intelligent new energy vehicles usher in explosive growth, if they have made adequate preparations in advance in this area, they will also have the opportunity to become a dominant and single supplier. This is Sony’s way out. If they don’t succeed, they will perish.

Final Words

There are also people who oppose Sony’s car-making. They say that Sony is just trying to make a move or attract attention. But in my opinion, if Sony is really exploring “a new way different from traditional cars”, I think it is worthy of encouragement. New energy vehicles still need different innovations to stimulate the market. In addition to Tesla, there are many companies dreaming of building cars in this direction.

Regardless of whether Sony succeeds, I still believe that participating is more important when standing at the door of a great era. In the words of Shi Wenlu, “When you’re at the door of a great era, you don’t need to be afraid of being slapped in the face. What you need is to participate wholeheartedly and boldly grasp the pulse of the era. We may be wrong, but most of us must be right.”

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.