May 2 news, according to CNBC, in order to survive the ongoing price war in China, the world’s largest auto market, Chinese electric car manufacturers are constantly overlaying the same artificial intelligence functions. The competitive landscape in the auto industry has changed over the past few years, with automakers now focusing on a range of in-car artificial intelligence capabilities, from improving battery range to launching driver assistance systems and using more powerful automotive chips.
Volcano Engine, a cloud platform owned by ByteDance, announced at the Beijing Auto Show on Friday that more than 50 car brands have adopted ByteDance’s Beanbao AI model. The tech unit set up a booth at the auto show next to self-driving taxi company Pony.ai.
Volcano Engine said this means the beanbags have been applied to 145 models, covering more than 7 million vehicles. In addition to domestic models, Doubao AI has also been integrated into new models of some foreign brands, such as pure electric Mercedes-Benz. GLC, SAIC Audi E7X and SAIC Volkswagen ID. ERA 9X.
"We will continue to accelerate the integration of new functions." Fermin Soneira, CEO of the Audi-SAIC cooperation project, told reporters this month on the eve of the auto show. He pointed out that automakers can quickly deploy technology updates remotely, known as OTA.
Despite the rapid rollout of new features, automakers face continued sales pressure.
"The situation will still be difficult because the capacity is there. This price war will not really end next month," he said.
The shift toward artificial intelligence reflects consumer demand for connected features, including interfaces compatible with Huawei smartphones or voice assistants such as Beanbao.
According to data from consulting firm Chozan, ByteDance’s Doubao is currently the most widely used artificial intelligence chatbot in China, with more than 155 million weekly active users as of the beginning of this year. Volcano Engine demonstrated Chinese and English artificial intelligence systems for cars at the auto show booth.
Stephen Dyer, partner and managing director of AlixPartners' Asia automotive and industrial consulting practice, said the price war has evolved into a feature war around cockpit technology.
The challenge, however, is that many of these technologies can quickly become similar, making it harder for companies to stand out.
According to data from AlixPartners, among the 20 best-selling electric vehicle models in China, those priced at 100,000 yuan ($14,645) and above all provide similar driving assistance and in-car entertainment features.
"With technology, they have to compete to develop, and they have to compete constantly, because technology spreads so fast, you can never maintain a technological advantage for a long time." Dell said.
Instead, he expects Chinese companies to start competing more on "off-car experiences," similar to luxury brands offering exclusive lifestyle experiences.
Chinese carmaker NIO, for example, offers exclusive products and a clubhouse to customers in addition to vehicles with premium interior materials.
The Chinese electric car company has been facing the dual challenges of cost pressures from offering such offers and slowing market growth. But NIO announced last week that its ES8 was the first model in the industry to sell for more than 400,000 yuan, and it took only 215 days to deliver 100,000 units.
Alibaba also announced on Friday that its Qwen artificial intelligence model will be integrated into vehicles from several automakers, including BYD. and a local joint venture with Volkswagen. The system allows drivers to order meals, book hotels, purchase attraction tickets and track packages through voice commands.
The model will use Nvidia's automotive chip system to operate even with limited network connectivity.
Tu Le, founder and managing director of consulting firm Sino Auto Insights, told CNBC's Eunice Yoon that ultimately, AI should run in the background to support the user experience and not necessarily become a feature of the vehicle.
Even if automakers struggle to stand out in the Chinese market, they may be able to compete more effectively with their foreign counterparts.
"We believe that what are simple functions and standard configurations in Volkswagen vehicles in the Chinese market will soon become standard configurations in Western markets," Le said. (Compiled by Bullwhip, Tram World, and AI Prius)