- DeepSeek AI in Chinese EVs emerges as competitive differentiator.
- Two dozen automakers, including BYD, to incorporate DeepSeek AI in vehicles.
DeepSeek AI in Chinese EVs is quickly becoming the new battleground for automakers, with companies trying to secure their competitive edge in China’s cutthroat electric vehicle market. AI technology has emerged as a important differentiator, and Phate Zhang, founder of CnEVPost, warns that vehicles without DeepSeek integration risk being “edged out of the market” entirely.
The South China Morning Post reports that DeepSeek AI adoption in Chinese EVs has gained momentum, with over a dozen automakers announcing integration plans in recent weeks. The technology has attracted manufacturers, from EV giant BYD to emerging players like the Stellantis-backed Leapmotor.
Integrating DeepSeek AI in Chinese EVs represents a significant technological leap forward. The Hangzhou-based AI company has captured global attention with its recent release of two advanced open-source AI models: DeepSeek-V3 and DeepSeek-R1.
The models are particularly notable for their ability to operate at a fraction of the cost and computing power typically required for large language model (LLM) projects, making them an attractive option for automakers looking to enhance their vehicles’ capabilities.
BYD, China’s leading EV manufacturer, has announced plans to integrate DeepSeek with its Xuanji vehicle software. The company aims to offer preliminary self-driving capabilities in nearly all its models at no additional cost, making autonomous driving features more accessible to mainland Chinese customers.
Its strategy includes equipping at least 21 models – including the affordable Seagull hatchback, priced at 69,800 yuan (US$9,575) – with Indigenous Advanced Driver Assistance Systems (ADAS).
The widespread adoption of DeepSeek AI in Chinese EVs extends beyond BYD. Other major players in the Chinese automotive industry, including Geely, Great Wall Motor, Chery Automobile, and SAIC Motor, have also announced plans to incorporate DeepSeek’s AI into their digital cockpits, highlighting the industry-wide adoption of this technology.
According to research firm IDC, DeepSeek’s open-source model has fostered a collaborative innovation ecosystem through platforms like GitHub, where global developers participate in optimisation and security testing.
The collaborative approach is expected to significantly improve the ability to effectively deploy, train, and utilise large language models. DeepSeek AI’s market impact on Chinese EVs is expected to be substantial. Zhang Yongwei, general secretary of China EV100, projects that by 2025, approximately 15 million cars – representing two-thirds of national sales – will be equipped with preliminary autonomous driving systems.
The forecast underscores the rapid transformation of China’s automotive landscape through AI integration. The competitive pressure in China’s EV market intensifies, as evidenced by aggressive pricing strategies. The China Passenger Car Association reports that manufacturers reduced prices on 195 models between January and November last year, compared to 150 models in 2023.
In this context, DeepSeek AI integration has become a important differentiator for automakers seeking to maintain their market position. As the integration of DeepSeek AI in Chinese EVs accelerates, the technology appears to be not just a trend but a necessary evolution.
The movement potentially sets new standards for the global automotive industry.
