(Yicai) Nov. 29 -- It will probably take another three years for autonomous driving technology developers to start making money, as the tech needs to be installed in millions of autos to support its development, the chief executive officer of the smart driving tech subsidiary of Chinese artificial intelligence company SenseTime told Yicai in a recent interview.

More vehicles need to start using autonomous driving technology in order for the sector to become profitable, Wang Xiaogang, who is also a co-founder of Hong Kong-based SenseTime, said.

Technology developers also need to link arms with automakers in a more cost-effective way, Wang said. At the moment, despite the rapid uptake of automatic driving systems in cars, many developers are losing money because most of the vehicle manufacturers they partner with are providing the software to users for free, despite the high development costs.

SenseAuto’s intelligent driving solutions are being applied by three automakers, including GAC Aion and FAW Hongqi, across six models. The firm’s smart AI cockpits are installed in cars such as the Xiaomi SU7, IM Motors and LEVC L380. The company also recently released a new intelligent cockpit system called "A New Member For U".

SenseAuto has already partnered with more than 30 Chinese and foreign automakers and its intelligent driving products can be found in more than 100 types of cars. It is expected that by the end of this year, the number of vehicles equipped with the company's intelligent products will exceed 3.5 million.

Intelligent driving and smart cockpits are beginning to become core configurations of automotives. However, the application of end-to-end large models has changed the mode of collaboration between automotive suppliers and vehicle manufacturers, Wang said. This is because end-to-end self-driving relies more on data-driven approaches.

SenseAuto provides basic computing power, platform-based data capabilities and tool chains, and it aligns data production standards and algorithm architectures, ensuring that data collected from different models is compatible, thereby enabling high-quality system delivery, Wang said.

"We have built a robust and high-quality data collection pipeline, which continuously outputs valuable and reliable data, providing a strong driving force to develop new products," Wang said.

Consumers will become more willing to purchase smart driving technology, according to a research report by Soochow Securities. The adoption rate of advanced intelligent driving in China’s new energy vehicles is likely to exceed 10 percent this year, 20 percent next year and 70 percent in 2027, far exceeding market expectations.

Editors: Tang Shihua, Kim Taylor