The rapid development of smart electric vehicles and the intensification of the involvement of car companies are driving the rapid increase in the penetration rate of air suspension.
By Laura King
According to the latest statistics from the Gasgoo Automotive Research Institute, in the first 10 months of 2023, domestic sales of new cars with standard air suspension were approximately 439,000 units, with a penetration rate of 2.6%. While in the same period in 2022, there were only 156,000 units, and the penetration rate was insufficient. 1%, with a year-on-year growth rate of 181%.
It is foreseeable that the air suspension market will continue to grow, and along with this process, competition in this field will also become increasingly fierce.
On the one hand, more and more new players are vying to enter the game. On the other hand, existing players in the field Suppliers who have opened up a certain situation in this field are gradually engaging in in-depth competition.
The traditional black box delivery model is no longer suitable for the current needs of OEMs.
From the perspective of air suspension, traditional head suppliers usually hope to provide a closed-loop black box system from perception-decision-execution to the OEM in order to obtain high profits, but this road is increasingly unfeasible.
Nowadays, leading OEMs tend to independently master algorithm development and system integration, and purchase sensing components, actuators, and controller hardware from outside (or integrate them into the chassis domain control).
Opening the black box system not only facilitates cost assessment but also facilitates subsequent OTA upgrade iterations and is conducive to business and planning expansion.
In fact, driven by the demand for spin-off outsourcing, domestic air suspension suppliers have developed rapidly in the past two years and have continued to expand and improve their product lines in the process.
Taking Baolong Technology as an example, currently, among the main components of the air suspension system such as front and rear air springs, controller hardware and control algorithms, ASU air supply units, height and acceleration sensors, air storage tanks, and pipelines; in addition to pipelines and ASU, except for the solenoid valve in which there is no direct layout, other main components are under in-depth layout, and all of them have mass production projects scheduled and are in mass production.
It is reported that in the field of air springs, Baolong Technology is currently one of the two leading companies in China; in the field of gas storage tanks, more than 80% of the new domestic fixed points are in Baolong Technology; ECU products have currently won 6 projects from two major customers.
Designated points, some of which have been put into mass production; ASU air supply units have also received five project designations from three major customers; sensors (including acceleration sensors and height sensors) have also received multiple project designations.
In addition, Baolong Technology is also currently deploying CDC shock absorber products. This means that in the entire air suspension system, Baolong Technology has a layout for the air springs, ASU air supply units and CDC shock absorbers with high single value.
Thanks to the full line of products, Baolong Technology already had system integration capabilities.
Recently, a well-known brand has mass-produced high-end electric cars. As a system integration supplier, Baolong Technology provides products such as air spring assemblies, controller hardware and algorithms, air supply units and air storage tanks, as well as system integration services.
It is reported that this is the first time Baolong has integrated and delivered such a system project. It is also the first domestic air suspension developed by a supplier that fully complies with the AutoSAR architecture, meets the ISO26262 functional safety system ASIL B level standard, and the software development process meets the ASPICE L2 level requirements. System.
Wang Shengquan, vice president of Baolong Technology, recently revealed in an interview with Gasgoo that the consideration behind Baolong Technology’s overall solution is that some OEMs are not yet able to master the know-how of control algorithms and system integration when applying air suspension for the first time.
In the short term, We tend to let suppliers with system integration capabilities package and supply this system.
However, it still needs to be noted that even OEMs that choose integrated outsourcing prefer to choose a system integration solution delivered by white box rather than black box due to the needs of subsequent development.
Wang Shengquan said that judging from the current situation, there are still some car companies that are applying air suspension for the first time, so the number of integrated fixed-point projects will increase in the near future.
In the long term, leading car companies will still choose the procurement strategy of subcontracting, and other car companies will still choose to split and outsource the procurement strategy. Enterprises will choose the system integration procurement strategy of white box delivery.
It is not difficult to see that Baolong Technology’s delivery method is very flexible. If the OEM needs an integrated solution, we will provide an integrated solution.”
Wang Shengquan pointed out that Baolong has comprehensively laid out all aspects of the air suspension system. Sensing and actuating components, and using a completely open attitude to help OEMs master algorithms and complete system integration.
He also revealed that because Baolong Technology’s product layout is relatively comprehensive, even if the main engine factory is separated for bidding, the company can usually win orders for multiple sub-parts at the same time.
“Whether it is dismantled supply or integrated supply, we are not using a black box system to capture excess profits. We only earn reasonable profits.” Li Ling, deputy general manager of Baolong Technology’s ECAS unit, added.
Involution is intensifying, and air suspension is changing from “single cavity” to “double cavity” on a large scale.
The penetration rate of air suspension has increased rapidly, and the configuration models have even dropped to the passenger car market with a price below 300,000 yuan. For example, the Star Era ES (Configuration | Inquiry) , which will be available for presale in November 2023 , will be equipped with air suspension + CDC as standard, and the pre-sale price starts at 248,000 yuan.
As models with air suspension configurations continue to decline, in order to compete differentiated, OEMs are bound to move to a new dimension and launch differentiated products with better comfort and other aspects. One of the important ideas is to start from single-cavity air springs. Moving on to dual chamber air springs.
It is understood that the dual-chamber air spring can provide two sets of variable stiffness curves, and can be used in combination to obtain more stiffness combinations, so it can improve the vehicle’s handling at high speeds, improve comfort on ordinary roads, and improve safety on ordinary roads. Better control of body posture during acceleration, braking, double line shifting, steady-state rotation and other working conditions.
According to industry insiders, in the future, models priced in the early 300,000 yuan or below will be equipped with single-cavity air springs from the original ones without air springs, while models with more than 300,000 yuan will slowly be equipped with single-cavity air springs. The transition from air springs to dual-chamber air springs “has become a big industry trend.”
This trend can also be seen from the information disclosed by relevant suppliers. It is reported that the dual-chamber air springs being developed by Baolong Technology have obtained 8 mass production targets. Next, the dual-chamber air springs of two major MPV models will be mass-produced, and other mass-produced models will also be launched in 2024 and 2025. It will be launched gradually in the year.
Wang Shengquan said that most of the models currently being ordered are dual-chamber solutions, and some older single-chamber models that have not yet been mass-produced are also changing to dual-chamber models. “2024 will be the year when dual-chamber air springs explode.”
The transformation from “single cavity” to “double cavity” just reflects the deeper competition among air suspension suppliers around air suspension, and this competition will continue to evolve.
Gasgoo has noticed that in order to cope with subsequent demand, some suppliers have begun to deploy three-chamber air springs. For example, Baolong Technology is developing three-chamber air springs and is expected to have samples in the first quarter of 2024.
In addition, Baolong Technology is also developing woven leather bags. It is reported that as a core component of the air spring, the braided bladder plays a very critical role in the overall performance of the air spring.
The European subsidiary of Baolong Technology is currently working with key equipment suppliers in Europe to develop a braided bladder production line.
In addition, according to him, Baolong Technology has three highlights this year. In addition to the mass production of the system integrated ECU and dual-chamber air spring mentioned above, there is also a spinning integrated air storage tank, which has now been mass-produced.
“Previously, The tank body of the gas storage tank was basically welded, and our current new process is one-piece spin forming, which has better performance.”
He pointed out that Baolong Technology is continuing to promote technological leadership based on the principle of “technology iteration, leading the industry”.
“For example, there is currently no demand for the three-cavity solution, but we have made arrangements in advance based on the approach of ‘doing one generation and watching the next’. This way we can become a technology leader and a business leader once there is a customer need.”
The market is getting bigger and bigger, and the competition for comprehensive strength is intensifying.
According to Wang Shengquan, since 2023, whether it is new designated projects or sales, Baolong Technology’s overall performance has basically been in line with expectations. What’s more critical is that Baolong Technology is currently showing unexpected growth in pre-research projects or new technology exchange projects.
This bodes well for the future of the air suspension market. Wang Shengquan said that the air suspension market is still an incremental market, and this “plate” will become bigger and bigger.
Of course, with the growth of market demand, more and more new players are “entering” this field. Industry insiders revealed that some new players want to enter this field regardless of the cost, or make suicidal offers, or do not charge development fees to fight for point B, or acquire projects of small value.
In Wang Shengquan’s view, this is unavoidable. Regardless of subsequent competitors, Baolong Technology is confident in maintaining its current advantage.
“At present, Baolong Technology’s air suspension air springs account for about 25% of the domestic market share, and new projects are in hand. And the upcoming mass production orders are greater than this ratio, and it is about to enter an explosive period, which means that Baolong Technology’s market share will continue to increase.”
About how to maintain an advantage? He mentioned the following aspects.
First of all, Baolong Technology is specialized in various sub-fields to ensure technological leadership, such as air springs from single chamber to double chamber to multi-cavity, air storage tanks from welding to spinning integration, etc.;
Secondly, Baolong Technology’s product technology and quality performance have been recognized by car companies, and it has become a strategic partner of NIO and Li Auto . It has also won the Excellent Quality Award from NIO and Li Auto. In NIO ET7 (Configuration In terms of price) , it has maintained the perfect performance of 0 kilometers, 0 PPM, and 0 after-sales failures since its launch.
This is due to the fact that Baolong Technology is a manufacturing company with more than 20 years of experience. Its quality development system, including the lean production system, is very mature.
“Unlike many competitors, Baolong Technology has many things in its own hands. For example, we do the hardware development and software design of the controller ourselves, and about 50% of the core components of the suspended project are produced by factories within the group.
In addition, Baolong’s production line construction includes personnel recruitment and training, quality The guarantee system has sufficient budget and pre-guarantee.”
It is understood that based on the existing production capacity, Baolong Technology currently has three new air suspension-related factories being invested: the new air suspension factory in Hefei, the new leather bag production and processing factory in Ningguo, and the new air storage tank factory.
These three new factories will begin mass production and delivery in 2023. According to the plan, in the next 1-3 years, Baolong Technology will lay out the production lines in advance according to the plan of doubling sales every year to fully guarantee production capacity.
In addition, after the volume increases, with scale effects and cost advantages, Baolong Technology will also take the initiative to reduce prices and fully participate in market competition.
“Our production capacity, speed in development and development resources grew swiftly. Similarly, the supply chain output has also increased leading to drop in costs. While maintaining the same profit margin, we will proactively offer competitive quotes in exchange for more large market share,” Li Ling added.
From this point of view, the future air suspension market will be more of a competition of comprehensive strength. Based on the above advantages, Baolong Technology is confident in its future development.
Wang Shengquan said that in the field of air suspension, Baolong Technology’s goal is to become the world’s top three in various subdivisions such as air springs, ASU air supply units, and air storage tanks.
