AI drives revolution in China’s automobile industry

BEIJING, Feb 26 :Imagine a driving experience that is as self-centered as it can be seats, music and temperature that adjust automatically according to your mood, routes planned by the auto-driving system using real-time traffic data, and charging notifications sent in advance based on the nearest charging stations…Increasingly, these futuristic scenarios are turning into reality in China.
AI has seamlessly integrated into every part of China’s automotive industry, revolutionizing each aspect from intelligent cockpit, autonomous driving, to vehicle design, production, marketing, sales, and after-sale services.
“It can be a travel expert, planning itinerary for you; it can be a secretary, extracting key information from your phone calls in vehicles; it can also read your facial expressions and gestures, engage in intelligent conversations, and cater to your needs,” shared Chen Xiaobo, Senior System Architect in iFLYTEK, a Chinese tech giant that has ventured into the realm of intelligent vehicles.

Human-like emotions, judgment, and decision-making capabilities are driving unprecedented efficiency, innovation, and personalization. In design, AI-powered tools such as AiCube enable designers to generate car sketches in seconds with minimal input. In manufacturing, AI optimizes processes from configuration to quality control, cutting costs by 25%. In marketing, AI analyzes consumer behavior to deliver tailored content, train livestreamers, and slash unnecessary advertising by 70%. In after-sales, AI-powered algorithm enables predictive diagnostics and defect recognition.
This shift towards AI-driven innovation is gaining momentum, with over a dozen major automakers, including BYD, Geely, Dongfeng, and Chery, announcing collaborations with DeepSeek. Additionally, companies like XPeng and Li Auto have announced to develop their own AI models, aiming to transform cars into “smart travel companions.”
According to S&P’s data provider IHS Markit, over 75% of new cars produced in China this year will feature smart cockpits-up from just over 50% four years ago. Prices for a regular ‘smart car’ have also been dropping to less than RMB 20,0000 ($30,000).
As vehicles evolve from simple transportation tools into “third spaces”-integrating leisure, entertainment, and even office functions—consumers are increasingly seeking a homelike experience in their cars. Ms. Xian Bijuan from the automotive research institute Autohome highlights that 47% of consumers report spending more time in their cars, while 55.3% of buyers are replacing their vehicles with more spacious, comfortable models.
In the future, AI will become as essential to cars as water and air to human, said Chen.
While car makers are racing to innovate, the intelligent evolution of Chinese cars present vast opportunities for international investment.
Basemark, a Finnish AR software developer has just entered into the Chinese market this year. China is poised to become one of the markets with the most abundant AI applications in vehicles.
Partnership is essential in your business in China. In collaboration with local hardware suppliers or original equipment manufacturers (OEMs), a whole set of solution can be provided, Paul Yeh and Mr. Xiao Zhihao from the company told China Economic Net (CEN) at China International New Energy Vehicle Technology, Parts and Services Exhibition that concluded in Beijing on Monday. Over 10,000 international visitors participated in the exhibition to seek opportunities of trade and investment.
Virgilio Gonzalez from Spanish multinational Gonvarri told CEN that as vehicle architectures in China are increasingly intelligent and electrified, sales of related products from their four factories in China are growing at around 20% annually.
Wang Zhigang, a chief engineer at China’s National NEV Technology Innovation Center, suggests international players leverage their mature automobile supply chain while embracing the intelligent revolution in China. “By tapping the potential in the mass market rather than the high-end portion, they can secure higher profits,” he said.