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German, Japan carmakers embrace Chinese AI as Tesla awaits Beijing’s nod on FSD

German, Japan carmakers embrace Chinese AI as Tesla awaits Beijing’s nod on FSD

German and Japanese car brands are rushing to integrate China-developed artificial intelligence (AI) models into their cockpit systems, as Tesla awaits Beijing’s approval to install full self-driving (FSD) on its models sold on mainland China.

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At the Shanghai Auto Show this week, AI models developed by Chinese tech companies – including Hangzhou-based start-up DeepSeek and Big Tech firms ByteDance, Baidu and Alibaba Group Holding – have emerged as popular choices for carmakers. Alibaba owns the South China Morning Post.

Germany’s Mercedes-Benz showcased a long-wheelbase electric CLA sedan at the show, touting its in-car intelligence powered by Doubao, the large language model (LLM) developed by ByteDance. The vehicle is the first mass production model for the Chinese market, after the two companies established a partnership in August 2024.

Doubao enables the car’s AI assistant to activate within 0.2 seconds, responding to a wide range of driver queries and executing commands, according to Volcano Engine, ByteDance’s cloud computing unit.

BMW displayed its upcoming Neue Klasse electric vehicle (EV), which incorporates Alibaba’s Qwen AI models into its intelligent system, a deal which Alibaba earlier called “a significant step forward in AI-driven mobility”.

The BMW “New Class” concept car was showcased at the Shanghai Auto Show this week. Photo: dpa
The BMW “New Class” concept car was showcased at the Shanghai Auto Show this week. Photo: dpa

Nissan Motor and Honda Motor, both from Japan, are working to integrate DeepSeek into their cockpit systems to improve the chatbot or voice interaction functions of the vehicles, the two companies said at the auto show on Wednesday.