yes, EV is a novelty but that can also be a drawback instead of an advantage. People are used to operating gasoline cars. So, for them switching from a Japanese/Korean brand to a Chinese brand might be a no brainer decision without any burden of changing the old mindset and habits.
Moreover, I don't agree that only EV can be technologically advanced. There is nothing stopping ICE cars from having the most advanced LIDAR, self-driving tech and awesome connectivity with all the devices. The only difference between an EV and an ICE car is the way you store energy. With ICE car you store energy using oil and you need to have an engine to generate power. With EV you of course have a battery.
You already see this with ICE cars starting to have massive touch screens and automated systems similar to EVs. So, again the choice becomes not "I want an EV with advanced tech", the choice becomes if both ICE cars and EVs have similar level of infotainment/self driving tech then "which type of energy/powertrain is the best suitable for me".
Moreover, if China wants to up the value chain then they need to export more and more cars. This will generate growth in GDP, people skill set and also advanced tech in vehicles regardless of whether its EV or not.
To clarify a few points.
I did mention that the novelty is specifically to western markets (i.e. Europe). Without the novelty of EV, it would be difficult to draw them away from something like Toyota or VW.
With technological advancement, I should have been clearer to specify powertrain-related innovation. With EV, there is still a lot of development with regards to range/efficiency, SiC microelectronics, layout (single motor, dual motor, tri, quad), ever growing power output etc.
In comparison, (non-Hybrid) ICE engines are talking about improvements in 1-2% Thermal efficiency in the past decade. The BIG innovation was supposed to be HCCI (Homogeneous Charge Compression Ignition, ie. no Spark Plugs), finally brought to market in 2020 by Mazda after many manufacturers showed prototypes in the 2000's. Turns out the efficiency/power gains are simply not worth the cost.
ICE cars can certainly have the same kind of advanced smart-driving features, in fact one of the first production LIDAR cars on the market was the Audi A8. However, advanced tech are still firmly luxury features, and luxury buyers are moving towards EVs due to better NVH characteristics, and preferred driving dynamics.
Infotainment features aren't even worth mentioning IMO. The carmakers are simply garbage in this respect. Even the much vaunted Tesla is often criticized. We already see from the budget models of Chinese automakers, it's basically just going to be a smartphone terminal for CarPlay/Android Auto.
Of course we have seen China's abilities to scale production drive costs down to everyone affordability, but there will always be limits.
Your idea of switching from a Korean/Japanese ICE car being a no-brainer is perfectly illustrating what I mean. Look no further than the aforementioned Chery which basically took over a swath of the Russian market of which Hyundai-Kia group were formerly two of the top sellers before sanctions. ICE sales are not technology-driven, it is all about availability, serviceability and marketing power. Economically important, but basically a dead-end technologically.
TL;DR version.
You are correct economically, but ICE is boring. Who wants to talk about it?
