#212

Tech Giants Roadmap
in Automotive

CASE

TABLE OF CONTENTS

EnablingCASE

To date, tech giants like Google, Amazon, Apple, Baidu, and Alibaba have assisted the IVI, connected, andautonomous strategies of major OEMs around the world. In many cases, these companies have developed
systems intended for a broad range of vehicles and multiple vehicle segments – one example being theadoption of smartphone mirroring systems as a common infotainment feature in many vehicles across different
segments and regions.

Introduction
BasicsExecutive Summary

However, as their ecosystems of automotive-focused technologies, systems, and features continues to evolve –tech giants today are considering opportunities to expand their presence further and become a directcompetitor. Some tech giants have already begun this journey by investing into, or acquiring, automotivecompanies, hiring industry talent, and announcing new subsidiaries dedicated to investigating and testing new
automotive solutions.

What’s New
Analysis
Summary Tables

This report outlines the role of tech giants in automotive while tracking their strategies across several industry
sectors. It details what products, services, and technologies they provide for the industry today while assessing
how equipped they are for expansion. Each giant is profiled thoroughly alongside the partnerships they sharewith OEMs and other key industry players today. Individual releases for Europe, China, and the U.S.
understand how these relationships and offerings can vary by region.

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#212/Tech Giants Roadmap in Automotive

Key questions answered> What offerings do tech
giants already have within
the automotive sector?

> What relationships dotech giants already havewith different car makers
and what do they support
as part of thosecontracts?

> What capabilities do tech
giants have that could
position them strongly for
future expansion?

> Which tech giants are more
likely to play a collaborativevs competitive role totraditional car makers?

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September 2023

TECH GIANTS IN AUTOMOTIVE GUIDEA data-driven analysis of the tech-enabled value chain of the futureReport Contents

Contents Page
212 – Tech Giants in Automotive Guide - 2023
Introduction ≫Basics ≫Executive Summary ≫What’s New? ≫571218▪ Connected▪ Autonomous▪ Shared Mobility

What? Tech Giant Partnership opportunities

Next Steps ≫63•

Automakers in supporting roles for TechGiantsContact Us ≫66•

Acquisitions by Tech Giants•

Tech giants are acquiring significant stakes inautomotive•

Automotive Patents•

Tech Giants diverse automotive patentconcepts•

ExploreSummary Table ≫▪ Electric42-61▪ Understanding Profiles –Offerings, initiatives and indicators▪ Secure▪ Technology stack

Analysis ≫•▪ Understanding Profiles –Collaboration, patents, and acquisitions

27▪ Apple•Motivational factors for tech giants▪ Amazon•

How? Tech Giants looking to deliver theirstrategy▪ Google•

Tech Giants' capabilities are growing•

What? Tech Giants’ have in for the automotiveindustry•

Tech Giants flexible offerings to automakers•

Which? Tech Giant is building more partnership▪ Microsoft▪ Baidu▪ Alibaba▪ Tencent▪ Huawei▪ Explore

Total number of pages - 66

Example slides
from the report

The Basics

Who are tech giants?
Facebook(or Meta)

AppleAmazon

Netflix

Google orAlphabet

Baidu

Alibaba

FAANG
Coined by CNBC’s Jim Cramer, FAANG represents the core
American tech giants – also commonly referred to the bigfour or GAFA with the more recent addition of Netflix.
Some believe that the dominance of FAANG to be anticompetitive given their market share, their stretching impact
and broad eco-systems delivering value through their scale.

••

Huawei

Xiaomi

BATH-X•••BATH represent four giants from the China market.
Their scale may be smaller than FAANG, but they havedominance within China, and a presence outside of China
Recently Xiaomi has been added by many to form BATH-X

AppleMicrosoft

Editor’s pick of a noteworthy otherMicrosoft is a tech giant of the highest order but pursues a muchdifferent corporate strategy than FAANG companies, focusing on
product & subscription monetization less than data and retaildriven revenues

Tencent

AmazonGoogleMicrosoftBaidu

Alibaba

Huawei

Tencent

SBD’s Tech Giants in Automotive•••

Eight tech companies focused on this report.
We are excluding Meta, and Xiaomi, and have decided tofocus on Google.
See the next slide for our decision criteria that led to thisdecision.

77

The Basics

Choosing the Automotive Tech Giants
BroadBigSonyXiaomi

AppleBaidu
Amazon Alibaba
Google Tencent
Microsoft Huawei
Alphabet
To be an Automotive Tech
Giant a company must be• Broad in their products andservices• Either very big globally orvery big within the Chinamarket• Have a mobility andautomotive focus
8Meta
DisneyIBM
Samsung
Fujitsu
Netflix
Intel
OracleQualcomm
NvidiaLG

Mobility Focus

Alphabet is a very broad
company with influence andinvolvement with many projects
including smart cities, whereas
Google and Waymo have more
automotive technology-specificrelevance – hence SBD has
selected to include Waymo
insights within Google data but
exclude broader Alphabetactivities
8Executive Summary

Automakers perceiving Tech Giants as partners

Threat Perception

Automakers moving from seeing Tech Giants as threats anddesiring them as partner“They’re coming for ourbusiness!”“We don’t have a choice- wehave to work with them”

The divide between
Tech Giants andOEMs is over – therelationships are
now pretty normal.
Christoph Grote
SVP Electronics & Software at BMW“I doubt they’re committed toauto”

9“They’re a great partner tocollaborate with”

Opportunity Perception
9

Executive Summary

Adaptive alliances forming with Tech giants

10Chart Visualization Source: Flourish• Tech giants as ‘Tier-0.5’ partners forin-house development: With someautomakers planning in-housedevelopment of services/features, they
prefer dedicated teams from the techgiants working closely with theautomotive experts. This nature of suchcollaboration is even stickier than
traditional automaker-supplier contracts.

Suppliers

Automakers

Forming supplier partnerships on delivering B2B offerings

Tech Giants• Tech giants have distinct capabilities(software): Traditionally, automakers
have relied upon Tier-1 suppliers(primarily hardware companies) for
product development, but as modern cars
evolve and become more feature-rich,software, AI and cloud expertise become
paramount and most sought-after. This is
an area where the Tier-1 suppliers are
evolving but aren’t yet dominating as
much as the tech giants.
• Some tech giants are collaboratingwith suppliers: Tech giants like Amazon,
Microsoft, and Apple have had
partnerships both on the OEM andsupplier side while Baidu, Huawei, andGoogle are largely targeting theautomakers only.
10Analysis

Overview of HowHow? are Tech Giants looking to deliver their strategy
Tech Giant strategies have been observed to fit into four key trends – these are not exhaustive but considering these strategies identifies some distinctively different
approaches between the Tech Giants. This chart table shows the indicated activity for each Tech Giant against each of SBD’s four categories of How a Tech Giant isbehaving. In addition, then with Why and What, Tech Giants are pursuing a mixture of strategies for How they pursue their motivations.

Tech GiantAppleOEM integration andpartnership
Integrating the different services
offered with vehicles (Carplay,Siri, Apple Music, Maps)

AmazonGoogle

11

Developing its own self-drivingcar (Project Titan)

Increased partnership for
in-vehicle integration of offering

Baidu

Baidu Map Large Screen Edition
for integration

Alibaba

OS for an embedded vehicle OS

Tencent

Increased OEM partnership
across the different layers of
the tech stack

Cloud anddata services

Open-source software
enablement

Developing new technology(Iron Heart) and AR/VR
Gadgets (Vison Pro)AWS Service for mobility
service platform

Software for dashboards and digital cockpit

MicrosoftHuawei

Autonomous investments andacquisitions

Waymo’s partnership withridesharing companies for self–driving cars

Android automotive for
infotainment and maps

Cruise’s partnership forcommercial self-driving vehicles

Storage solution andMS dynamic 365 products forin-vehicle

Offering multiple open sourceplatform (Fuchsia, TensorFlow)

Competing with other tech
giants by developing platforms
like ERNIE Bot

Integrated navigationassisted driving

Using the Tencent
hybridization model throughTencent Cloud

Increased partnership with automakers using Huawei Intelligent
Automotive Solutions

Legend : Future indication of offeringHighMediumLow

No activity11Tech giant’s offeringsAnalysis

What? Tech Giants have in store for the automotive industry
LegendTech Giants
Alibaba
AmazonConnected

AutonomousFutureElectrified

SecureSharedAli OSAmap

Alexa/Echo Alexa Automotive

Autonomous Mobility
AWS

AWS inc. Automotive

Autonomous Mobility Zoox
Self Driving Car

Apple

Automotive & Mobility

Vehicle Personalization Iron Heart

Maps -Including Multi-modal planning & EV routingApple Car - Project Titan

Ride Sharing - Didi Investment

Apple Car - Project Titan

Digital Key
CarKeyBaidu Map

Baidu

IQIYI

ApolloCarLife
MapsGoogle

HuaweiHello Chuxing

Android Automotive

Waymo
Android Automotive
Stolen Vehicle Tracking

Lyft Integration
GASCloud Services

HiCar

AR-HUD & Hologram
AR-HUD

HuaweiSmartphone

Huawei connected car
cloud service

Waze Carpool

Huawei Intelligent Automotive Solution

Microsoft Connected Vehicle Platform

MicrosoftBing Maps
Inc. EV Station Info

Azure inc. Automotive
Cloud Storage

12TencentDingdang VPA
TAI 3.0

Tencent Map
TAI 4.012

Summary Tables

Amazon Profile

Amazon – Collaboration, patents and acquisitions
Partnerships
Patents
Acquisitions
OEM | Supplier Applied | Granted Number 2017-23

Acquisitions
USD Bn 2017-23

Connected

OEM integrationand partnership

Autonomousinvestments andacquisitions

Competitive partner for
Voice integration feature(Alexa)

AWS

Cloud anddata services

Open-source
softwareenablement
OpenSearch,
EKS Distro, FreeRTOS

Availability for data
migration and storage

Autonomous

Testing for theautonomous delivery
truck

SharedPartner for transportationand mobility services

Electrified

Working with partner tooffset carbon footprint

SecureStake/ ownership incompanies (Aurora, Zoox)

Azure for AI tech on
autonomous driving

Opportunity to partner for
Mobility service platform
for expansion

Offering cloud services for edge computing, disaster recovery and backup

0510 050

100 0510 0.005.00

10.00

LegendHighMediumLow

SBD Insights•

BMW has expanded the partnership with Amazon Web Services cloud software to manage data from its autonomous vehicles. This partnership will be integrated into BMW's "Neue Klasse"
platform due out 2025 for its future lineup of electric vehicles, allowing for the processing of triple the amount of vehicle data compared to current models. The increased data processing
power will enable higher levels of autonomous driving and support both Level 2 and Level 3 autonomous driving systems.

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