Produced by Zhineng Technology

German automotive components giant Continental AG is undergoing its most significant strategic transformation since its inception.

In 2025, Continental AG will spin off its automotive subsidiary, renaming it "Aumovio," marking the official entrance into a new era of software-defined vehicles. The joint venture in the ADAS field, "Intelligent Driving Continental," has also introduced a cost-effective and scalable solution tailored for various scenarios, securing orders from numerous automakers.

We delve into the strategic rationale, technological trajectory, and future challenges behind Continental's transformation to understand how this traditional German Tier 1 supplier is striving to carve out its niche with an entrepreneurial mindset.

01

The Birth of Aumovio:

A Strategic Transformation of 'Re-Entrepreneurship'

Continental AG officially announced the renaming of its automotive subsidiary to 'Aumovio' with plans to list it independently on the Frankfurt Stock Exchange in September 2025. This spin-off and reorganization aim to enhance operational efficiency and reposition the company amidst the wave of software-defined vehicles (SDVs).

The naming of 'Aumovio' embodies the company's redefined vision of 'Auto' and 'Movio.'

Unlike traditional component businesses, Aumovio will focus on four core areas: software-driven, intelligent, safe, and connected experiences, fully engaging in the global transformation of mobility technology.

In the Chinese market, the world's largest testing ground for smart vehicles, Aumovio faces particularly acute challenges.

Continental has clearly outlined three strategies: 'Comprehensive Cost Competitiveness,' 'Rapid and Agile Response System,' and 'Local Innovation and R&D Capabilities,' which precisely address China's market characteristics, including fierce competition, high localization demands, and rapid product cycles.

◎ Cost Advantage Leveraging Local Layout: Continental has established R&D centers in Shanghai, Wuhu, Nanjing, Changchun, Chongqing, and others, alongside test bases in Yancheng and Heihe, and a highly digitized manufacturing system. This equips the company with the core ability to create cost-effective products.

◎ Organizational Optimization Accelerates Response Speed: For instance, the millimeter-wave radar team achieved a record by delivering full-featured software in just three months through restructuring the R&D process. This rapid delivery capability is highly valued by automakers in new model projects.

◎ Ecological Collaboration Drives Local Innovation: With eight R&D centers in China, Continental continuously enriches its technological ecosystem through collaborations with local partners (such as Horizon Robotics), enhancing product adaptability for local customers.

Continental aims to establish differentiated competitiveness in core components and systems for smart vehicles through the new entity 'Aumovio,' thereby gaining an early advantage in the software- and data-dominated new battleground.

ADAS and autonomous driving are the most watched areas in the new generation of smart vehicles. The joint venture 'Intelligent Driving Continental,' established by Continental and Horizon Robotics, has become a pivotal weapon for capturing the high ground of intelligent driving in the Chinese market.

At this year's Shanghai Auto Show, Intelligent Driving Continental showcased two products targeting different market segments:

◎ Luna Series: Aimed at L2 entry-level and highway NOA scenarios, it supports flexible configurations from 1V1R to 1V5R. The hardware platform has been upgraded to the Horizon J6B chip, covering key functions such as highway navigation-assisted driving and intelligent parking, meeting the needs of economical models for a balance between cost and functionality.

◎ Astra Series: Focusing on urban NOA, it features a lightweight design and does not rely on high-precision maps. It utilizes two J6M chips and an 11V1R sensor architecture, capable of handling complex urban scenarios like narrow road navigation, unprotected U-turns, and ramp entry/exit. Its end-to-end progressive architecture not only ensures performance but also facilitates rapid OTA iterations.

The system's unified algorithm architecture facilitates smooth switching and reuse across different models for customers. This 'platform-based + modular' design approach significantly reduces development and adaptation costs for OEMs.

Intelligent Driving Continental is not rushing to launch L3 or higher-level products. Juergen Brandl, its head in China, stated, 'Only by solidifying L2 can we pave the way for future L3.'

Starting from highways and gradually expanding to complex scenarios such as urban and parking areas, this approach aligns with China's market regulation and mass production rhythms, reflecting Intelligent Driving Continental's product philosophy of 'mass production first, then iteration.' The solution has secured mass production orders from multiple mainstream automakers and will commence mass production in the second half of 2025.

02

Technical Accumulation and Platform-Based Thinking:

The Rise of Full-Stack Autonomous Driving Solutions

Globally, Aumovio is accelerating its role as a 'full-stack' solution provider, leveraging its years of technical expertise in ADAS and sensors.

In terms of technical architecture, Continental has developed a modular sensor portfolio encompassing radar, cameras, ultrasonic, night vision, and partial LiDAR technologies, complemented by efficient computing platforms and middleware frameworks. This constructs a multi-level product portfolio ranging from 'L2+ Parking & Cruise Systems' to 'L4 Autonomous Truck Systems.' 4D imaging radar and scalable camera platforms are the core technical pillars supporting its system capabilities.

The 'Hardware-as-a-Service' business model, particularly in the field of commercial vehicle L4 autonomous trucks, offers highly available commercial solutions through Level 4 Fallback systems and redundant subsystems, addressing safety and cost challenges in current L4 commercialization paths. It also provides customers with the flexibility of pay-as-you-go and continuous service, fundamentally transforming the traditional one-time delivery supply model.

Aumovio's autonomous driving business will achieve 'outperform the market' growth strategies through three clear paths:

◎ PERFORM: Modular component supply focused on cost-effectiveness. Relying on the hardware capabilities of sensors and control units, Continental aims to maintain its cost-effective advantage in the ADAS component market, ensuring stable cash flow.

◎ FOCUS: Concentrating on L2+ integrated solutions. Under the trend of software-defined vehicles, relying solely on hardware is insufficient to establish long-term barriers. By integrating software platforms and middleware, Continental packages sensors, computing units, and driving functions for delivery, enhancing customer integration efficiency and OTA capabilities, reinforcing its role as a 'system solution provider.'

◎ LEAD: Pioneering in commercializing L4 autonomous trucks. The exclusive collaboration with autonomous driving company Aurora to launch an L4 system is a crucial step for Continental to penetrate high-tech threshold markets. This system integrates visual recognition, computing hubs, functional safety, and fault-tolerant mechanisms, striving to gain an early advantage in the transportation automation and 'Transportation as a Service (TaaS)' markets.

L2+ systems will be 'democratized' through collaboration with SoC suppliers, thereby promoting more cost-effective intelligent ADAS functions on a large scale in the passenger vehicle sector, circumventing the technical bottleneck of high costs and low adoption faced by L3.

In summary, Continental AG's 30-year localization journey in China, from initially establishing factories to today's deep integration of local R&D, product definition, and technological cooperation, at the turning point of the era of software-defined vehicles and intelligent transformation, Continental AG has chosen to restart its journey with 'Aumovio' and delve into the local market with 'Intelligent Driving Continental.'