China’s auto industry is rapidly integrating artificial intelligence (AI) into vehicles, with major tech and automotive companies announcing new AI-powered features at the Beijing Auto Show. Alibaba’s Qwen AI model will be embedded in cars from BYD, Volkswagen’s joint venture, and other automakers, enabling drivers to order food, book hotels, and track packages via voice commands. The system runs on Nvidia’s automotive chip system and functions with limited network connectivity.
Xpeng’s updated AI model allows drivers to give natural language commands, such as parking near a shopping center entrance, without needing precise map coordinates. The company’s vehicles can navigate using cameras alone. Meanwhile, Xiaomi, which entered the EV market three years ago, released an updated AI model for its vehicles.
The push for AI in cars aligns with China’s national “AI Plus” initiative, part of its five-year plan to embed AI across industries, including manufacturing and healthcare. The goal is to reduce reliance on foreign semiconductors, particularly from the U.S., which dominates high-end chip production.
Industry leaders emphasize the transformative potential of AI in vehicles. Nissan Motor China’s Stephen Ma stated that the distinction between tech and auto companies is fading, with AI-developed vehicles advancing faster in China. Francois Roudier of the International Organisation of Motor Vehicle Manufacturers called the shift a “revolution,” not a transition.
Competition in the slowing EV market is driving automakers to differentiate through software and services. Audi’s local Chinese version, which replaces its logo with a wordmark, announced its E7X electric SUV will incorporate AI features from ByteDance’s Doubao and iFlyTek. Cadillac, GM’s luxury division, also showcased a new model with voice-assistant capabilities linked to Doubao AI.
The integration of AI in cars is part of a broader trend in China’s tech and automotive sectors, with companies racing to develop self-reasoning machines powered by domestic chips and software.