The ‘Bosch of the EV Era’ is Coming From China: Why CATL’s Skateboard Chassis is an Existential Threat to European Automakers

“Are We Just Working for CATL Now?” – A Joke Becomes a Terrifying Reality for Automakers

Back in 2022, a senior executive at GAC Group, a major Chinese automaker, quipped, “The battery accounts for 60% of my car’s cost. Am I just working for CATL?” At the time, it was a poignant jab at the soaring cost of batteries. Today, that joke is no longer funny. It’s rapidly becoming the terrifying new reality for the global auto industry, and European giants like Volkswagen, Stellantis, and BMW should be paying close attention.

The world’s largest battery manufacturer, CATL, has declared its ambition to move far beyond cells and packs. Through a subsidiary, it’s now selling the entire heart and skeleton of an electric vehicle: a complete skateboard chassis. This isn’t merely a new product line; it’s a strategic bombshell aimed at upending the 100-year-old hierarchy of the automotive world. For European automakers who have long prided themselves on their engineering prowess, this is an existential threat.

The CIIC: Selling the Soul of the Car

CATL’s offering is called the CIIC (CATL Integrated Intelligent Chassis). It’s a ready-made platform that integrates the battery, electric motors, suspension, braking—everything needed to make a car move. An automaker simply needs to design and mount a body, or “top hat,” onto this base.

The proposition is dangerously attractive. CATL claims its CIIC can:

• Cut vehicle development time by 6-12 months.
• Reduce R&D costs by a staggering 60-70%.

In a hyper-competitive market, this “fast and cheap” model is a powerful lure. It’s no surprise that several automakers, including Avatr and JAC, have already signed up.

The Real Ambition: To Become the Bosch of the EV Era

While the hardware is impressive, the truly critical insight lies in CATL’s strategy. Their goal is not to sell chassis; it’s to become the ‘Bosch of the EV Era.’

For decades, Germany’s Bosch was the invisible giant inside almost every car, supplying critical engine control units (ECUs) and safety systems. Automakers relied on them. CATL intends to replicate this dominance for the electric age. By bundling all critical components into one package, CATL positions itself as the indispensable bridge between hundreds of smaller suppliers and the automaker. They are creating a new center of power, and it’s located in China, not Germany.

This ambition was confirmed by CATL’s CEO, Zeng Yuqun, who stated the company is not just a parts maker but a “system solutions provider.” (Source: CATL Official Release)

A Two-Pronged Attack on the Industry

CATL’s strategy doesn’t stop at the chassis. They are simultaneously building a massive battery-swapping network called EVOGO. With backing from five major state-owned Chinese auto groups and a long-term plan for 10,000 stations, they are aiming to control not just the vehicle’s foundation but also its energy ecosystem.

This creates a terrifying scenario for traditional automakers. If a European brand builds a car using a CATL chassis, powered by a CATL battery-swapping network, and running on a software suite from another tech giant like Huawei, what is left of the original brand? What, exactly, makes it a Peugeot or a Volkswagen?

The risk is immense: legacy automakers could be hollowed out, reduced to mere design studios and marketing firms responsible only for the “shell,” while a Chinese tech giant controls the core technology, profit, and customer data.

The joke from 2022 has come full circle. The question “Are we just working for CATL?” is no longer a rhetorical complaint. It is now the most critical strategic question facing every automotive board in Munich, Stuttgart, and Paris.

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Deeper Dive: Recommended Books for a More In-depth Understanding

For those who wish to gain deeper insights into the topics discussed today, here are some expert-recommended books that I have personally reviewed.

[Inevitable: Inside the Messy, Unstoppable Transition to Electric Vehicles]

• Why this book helps understand the topic: Today’s analysis of CATL’s strategy is a perfect real-world example of the ‘messy, unstoppable transition’ this book masterfully documents. ‘Inevitable’ takes you directly inside the boardrooms where legacy automakers are grappling with how to compete against ’emerging Chinese powerhouses’ like CATL and BYD. It brilliantly explains the fundamental power shift from traditional mechanical engineering to software and systems—the very shift that enables CATL’s audacious move. If you want to understand the high-stakes corporate drama behind the headlines, this is the book to read.
• 👉 [Read Book here]

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