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The Apple store in Hong Kong’s IFC mall. (Apple website)

Will we be seeing cars bearing the Apple emblem by 2024? Apple’s ambitions for the automotive industry are starting to take concrete shape. Some say Apple could use self-driving and battery technology as a launchpad for joining the ranks of finished vehicle makers. China’s Baidu has also expressed interest in electric vehicle (EV) production, signaling an accelerating trend of tech companies venturing into the automobile industry. Industry observers are predicting a head-on collision between these new challengers and the automotive establishment.

According to a Dec. 22 report by Reuters, Apple has set a target date of 2024 for producing cars equipped with its independently designed battery. It’s a continuation of Apple’s Project Titan, a self-driving EV initiative launched in 2014. This is the first concrete mention of a timeline for Apple’s mass production of automobiles. Analysts suggest Apple is speeding up its efforts to compete with Google’s Waymo, which has already ventured into robotaxis.

Apple has long shown an interest in automobiles. To date, it has focused on operating systems, an area where it is already a leader. An example of this is CarPlay, launched in 2014. CarPlay is a service that allows drivers to use certain iOS apps by connecting their smartphone to a vehicle’s infotainment system. The idea of cars becoming “computers on wheels” is no longer something for sci-fi. While Project Titan was launched the same year, it faced multiple setbacks related to technological difficulties. Sources have reported internal discussions in which some proposed focusing on vehicle operating systems through advancements to CarPlay.

If Apple were to manufacture a self-branded automobile, it would have a huge impact on the industry. Interestingly, Apple’s strategy of vertical integration is similar to the approach already adopted by the automobile industry.

This is why some expect that Apple will outsource the manufacturing of its cars, in contrast with other tech firms. Apple’s remarks about new battery technology are also being interpreted in the same context. Google and other tech firms have installed self-driving solutions in vehicles manufactured by other automakers.

Others think Apple would hesitate before jumping into automobile manufacturing, an industry that requires a huge up-front investment but takes a long time to become profitable. Tesla didn’t turn a steady profit until 17 years after its establishment.

“Sources have said they expect the company to rely on a manufacturing partner to build vehicles,” Reuters said.

This story is bigger than just Apple and Google, however. Tech firms have recently been aggressively considering self-driving technology as a potential springboard into the mass production of automobiles.

Reports indicate that Chinese company Baidu, one of the world’s largest internet firms, has recently been working on EV production. Baidu has been developing self-driving technology since 2013.

Zoox, an Amazon acquisition, recently launched its first self-driving robotaxi. Chinese firm Tencent has also continually invested in autonomous vehicles.

This all points to a broader front in the war between legacy automakers and tech firms over the future of the automotive industry. The growing importance of battery and semiconductor firms in recent years makes it even harder to predict the victor.

“Tesla has recently been driving momentum in the EV industry, making tech companies desperate not to fall behind. The fact that automakers have been openly rebranding themselves as mobility solution companies also seems to be accelerating [tech companies’] efforts to enter [the industry],” said Lee Hang-gu, an analyst at the Korea Automotive Technology Institute.

By Lee Jae-yeon, staff reporter

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