Jakarta, INTI - China’s electric car industry is increasingly adapting artificial intelligence (AI) systems and features to keep competing in the world’s largest automotive market.
More than 50 car brands in China have now adopted ByteDance's Doubao AI technology. This technology has been installed in 145 vehicle models with a total of more than 7 million units on the road, demonstrating massive adoption in a short period of time.
This phenomenon reflects a shift in industry strategy, from a focus on battery range to the integration of intelligent systems within the vehicle cabin. Advanced features such as voice assistants, smartphone integration, and AI-based digital services are now the new standard.
However, behind this innovation, business pressures are intensifying. Car manufacturers are facing excess production capacity, fueling a protracted price war in the market.
“It’s going to remain tough, because the capacity is there,” said Fermín Soneira, CEO of the Audi-SAIC project. He also added that the price war will not end anytime soon.
Strategies to Stand Out
This situation has trapped manufacturers in a cycle of competition without clear differentiation that can make them stand out. Automotive consultant AlixPartners notes that the majority of electric cars priced above 100,000 yuan now offer nearly identical features.
“With technology, they’re going to have to race and keep racing, because it disseminates so quickly that you’re never going to be able to sustain a differentiated technology for long,” said Stephen Dyer of AlixPartners.
Analysts believe that Chinese manufacturers are shifting their strategies to consumer experiences beyond the vehicle. Nio, an electric vehicle manufacturer based in Shanghai, for example, offers exclusive access to its community and premium services as added value.
Meanwhile, tech giants like Alibaba are intensifying competition by introducing the AI Qwen into its vehicles. This system allows users to perform various digital activities directly from the car, from ordering food to purchasing tourist tickets.
Despite increasing domestic competition, Chinese manufacturers are considered to have significant opportunities in the global market. Features currently standard in China are expected to soon be adopted globally.
Conclusion
Competition in China's electric car market is intensifying, with a shift in focus to artificial intelligence (AI) integration as a differentiation strategy amid a price war. More than 50 brands have adopted ByteDance's Doubao technology, which is now used in millions of vehicles. However, excess production capacity is continuing the price war and making it difficult for manufacturers to stand out, as many models offer similar features. Despite the high domestic pressure, Chinese manufacturers still have opportunities for global expansion due to the potential for widespread adoption of the technology.
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