New energy vehicles are accelerating their export to Europe! Why are data compliance and security red lines the most troublesome?

Sometimes you may feel that in the matter of car manufacturing, who will be the first to roll out intelligence and who will be the first to roll out localization, but only when you really step out of the country, you will know what “European standards are not a joke”. Recently, Chinese car companies have flocked to go overseas, especially eyeing the European market, and have been busy holding press conferences, signing agreements, and building R&D centers. But in the final analysis, the most headache is not the design, not the battery life, or even the sales volume – but the high-voltage line called “data compliance and security”.
“Europe welcomes you, but is your data safe?”
This sounds quite abstract at first, but in the context of car companies going overseas, it is simply a soul-searching question. You see, domestic new energy vehicles can sell millions of vehicles a year, and more than 6 million vehicles are exported, which is a world champion. But once you go overseas, especially to Europe, the first thing is not to sell cars, but to first figure out what the “alphabet soup” of GDPR, NIS2, and AI Act requires. In a word, if the data is not compliant, you will be fined upside down in minutes.
Some people may say that car manufacturing now is not just about intelligence, networking, and autonomous driving. But it is these advanced functions that have put “data security” on the cusp. Every connected smart car is a mobile data server that can collect a wide range of things: from vehicle status, geographic location to the owner’s personal information, and even passerby data recorded by cameras and radars. In Europe, all of these must comply with strict data protection regulations. If there is any mistake, a live version of the “sky-high ticket” may be staged.
Interestingly, everyone is desperately trying to localize and take root. Changan, Xiaopeng, Ideal, Weilai, and even Xiaomi have moved their R&D centers, data centers, and design studios to Munich and Frankfurt… On one hand, car companies are building their own technical and regulatory teams, and on the other hand, localized service providers and cloud computing companies are taking the opportunity to “sell shovels” – such as China Telecom Europe and Tencent Cloud, which specialize in helping car companies to comply with regulations, do local data hosting, and build high-security transmission channels. To put it bluntly, whoever can do a good job in “compliance” can get a share of the European market.
But here comes the problem. Data compliance is something that you can’t just buy with money.
First of all, there are many different laws and regulations in different countries. The EU has GDPR. The UK has its own data protection law after Brexit. France and Germany also have local rules. For example, the road test data of smart cars must have a clear notification, collection, storage and processing process, and even every step must be backed up.You want to transfer the data back to the domestic headquarters? Sorry, it will be stuck if it is not desensitized or anonymous.
Secondly, data compliance is not a one-time investment, but must run through the entire life cycle of the product – from research and development, production, sales to after-sales, each link must be self-checked and self-corrected. If there is a problem, it cannot be “patched”, but can only be “reconstructed”. This is a hard test for the system capabilities, teamwork, and technical reserves of car companies. “Compliance is not a cost, but a bottom line.” This is the consensus in the industry now.
Another point that is often overlooked is that European users are far more sensitive to privacy than imagined. Domestic users may care more about whether the car system is fast or whether the automatic driving is effective, but European consumers are not so easily fooled by “black technology”. What they care about is: Will my data be abused? Will the manufacturer secretly sell my driving trajectory and voice commands to a third party? Once trust collapses, let alone sales, even the brand will be in trouble.
Let’s talk about something unpopular but real: “Data cross-border” has become a hurdle that car companies cannot avoid when going overseas. Not only do they need to build a data center locally, but they also need to handle data flow, compliance review, and emergency response. The whole set of processes is comparable to rebuilding a small IT company. So now there is a popular saying in the industry, “To build a car and go overseas, you must first build a ‘data bridge’.”
Of course, having said that, compliance has indeed forced a lot of innovation in recent years. For example, privacy computing, data desensitization, edge computing, and even some companies are exploring the use of AI to assist in regulatory interpretation and risk monitoring. In the final analysis, whoever is more fierce in data security is qualified to tell the smart story.
Finally, we have to return to reality: the European market has great opportunities, but data security and compliance are the “life and death line”. Don’t think it’s as simple as filling out a few forms and signing a few agreements. It means that the entire company’s technology, management, and service capabilities must reach a new level. Can we make it through? Not by shouting slogans, but by really polishing every detail.
Sometimes I think that this is actually the only way for Chinese auto companies to go from “products going overseas” to “systems going overseas”.
“Compliance is not a stumbling block, but a ticket.”