Industry value chain shifting to software

Self-driving technologies will likely enable Chinese companies to leapfrog developed countries in the automotive sector, as the value chain of the industry is expected to shift from hardware to software.

"Self driving is an area where China and the rest of the world are on the same starting line. And many of the Chinese teams have people with world-class technological capabilities," said Kuang Ziping, founding managing partner of the Shanghai-based Qiming Venture Partners.

Globally, there are three major forces in the driverless race - established technology companies, startups and traditional automakers.