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Leo Li: Transformation of the Chinese Automotive Market

Brandon M. Lewis
May 5, 2025 9:00:00 AM

At the Learning Curves executive summit, Leo Li Shiwei, President of European Region at Tencent Cloud Europe, delivered an enlightening masterclass, showcasing Tencent's innovative perspective on the intersection of cloud technology and the automotive industry. Li's talk, titled “Transformation of the Chinese Automotive Market,” underscored how cloud computing is revolutionizing the automotive landscape, especially in China, and offered a roadmap for collaboration between Chinese and European companies.

Leo Li

Tencent: A Silent Giant Making Waves

Tencent, often described as a "low-key" company, is anything but small. As one of the top 10 companies globally by market value and China’s leading internet enterprise, Tencent’s influence spans multiple domains. From its super apps—WeChat and QQ—serving 1.8 billion active users to its leadership in gaming, digital content, fintech, and cloud services, Tencent has built a robust ecosystem that combines B2C and B2B capabilities. Li emphasized the company’s unique ability to connect businesses with their end users, leveraging its massive ecosystem to drive both revenue growth and operational efficiency.

A Unique Perspective: Cloud in the Automotive Industry

Li’s presentation outlined a stark contrast between Chinese and European perspectives on next-generation cars. While European automakers often view the shift as an upgrade from combustion engines to electric powertrains, Chinese automakers approach it as a complete digital transformation. In China, cars are increasingly seen as extensions of digital lifestyles—spaces that mirror the functionality of homes, offices, or coffee shops.

This shift has been driven by companies like NIO, which focus on creating personalized, community-driven user experiences. NIO’s VIP lounges and customizable features have set a new benchmark, moving the industry from static offerings to continuous updates and user-centric services.

Lessons from China’s Digital Landscape

China’s massive scale presents unique challenges and opportunities for digitalization. Li highlighted three key values driving digital innovation in China: customer experience, operational efficiency, and business resilience. With over 1.4 billion people and a vast market, businesses in China must build IT systems capable of handling immense traffic spikes and rapid scalability. For instance, during peak e-commerce events like "Double 11" (Singles’ Day), traffic volumes can surge 20 times higher than usual, demanding unparalleled operational agility.

These challenges extend to the automotive sector, where digitalization must prioritize not only functionality but also seamless user experiences. In this context, cloud technology becomes indispensable—enabling automakers to manage vast datasets, personalize user interfaces, and ensure resilience in the face of regulatory demands like GDPR.

Leo Li Shiwei

Seven Trends Shaping the Future

Li outlined seven transformative trends in automotive digitalization:

  1. User-Centric Services: Transitioning from product-focused to user-focused approaches, as demonstrated by NIO’s community-driven model.
  2. Continuous Updates: Shifting from fixed features to dynamic, personalized software updates for cars.
  3. Flexible Identification: Utilizing digital keys linked to platforms like WeChat for car access and management.
  4. Closed-Loop Marketing: Leveraging Tencent’s network of over one billion users to connect targeted ads directly to CRM systems, creating seamless lead conversion.
  5. Platform-Based Applications: Developing customizable, downloadable apps for cars, fostering a dynamic ecosystem.
  6. AI-Driven Platforms: Offering pre-trained AI models that businesses can integrate without extensive in-house development.
  7. Regulatory Compliance: Providing solutions tailored to China’s unique regulatory environment.

Tencent Cloud: The Backbone of Automotive Transformation

As Li explained, cloud technology is not merely a tool but the driving force behind these trends. Tencent Cloud, ranked among the top five globally, offers an extensive infrastructure that spans 26 regions and 70 availability zones worldwide. Its cloud solutions address key automotive challenges, from enhancing customer experience to optimizing operations and ensuring business resilience.

Tencent’s comprehensive cloud offerings include everything from R&D tools and production logistics to digital marketing and intelligent cockpits. The company’s deep expertise in AI, big data, and digital ecosystems positions it as a crucial partner for automakers seeking to innovate.

The Integration of Real and Digital Worlds

One of the most compelling aspects of Li’s vision was the integration of real and digital experiences. Tencent’s gaming expertise, for instance, enables features like virtual car ownership through NFTs and immersive digital twins for smart cities. These innovations not only enhance user engagement but also redefine how we interact with cars and urban environments.

For example, Tencent’s intelligent driving maps provide 360-degree visualization of surrounding vehicles and pedestrians, enhancing safety and situational awareness. Meanwhile, virtual assistants in electric vehicles add a human touch, offering personalized support for drivers.

A Call for Collaboration

Li concluded with a powerful call for collaboration between Chinese and European companies. While Chinese tech firms bring expertise in digitalization and cloud services, European automakers excel in engineering and craftsmanship. By combining these strengths, Li envisioned a future where the best of both worlds could converge to create truly revolutionary cars.

Li remarked that they are here to collaborate, offering the digital tools and ecosystems to complement Europe’s automotive excellence.”


A Shared Journey to the Future

Leo Li Shiwei’s masterclass highlighted the transformative potential of cloud technology in the automotive sector. As the boundaries between industries blur and digital ecosystems grow more complex, partnerships like those proposed by Tencent will be key to shaping the next generation of mobility. By embracing collaboration, the automotive industry can harness the power of cloud technology to drive innovation, enhance user experiences, and create a sustainable future for all.

Leo Li Shiwei Tencent Cloud Europe at the Hasso Plattner Institute

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A Note to Our Readers:

This article offers an overview of the key ideas presented by Leo Li during his talk. While we’ve captured the main concepts and innovations he shared, the full scope of his insights and examples is best experienced by watching the entire session. To dive deeper and hear directly from the speaker, we invite you to view the complete presentation. For any questions or further information, feel free to reach out to us.

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