China’s EV price war turns into AI arms race beyond cheaper cars
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By Evelyn Cheng
Published on May 1, 2026.
Electric carmakers in China are increasing the use of artificial intelligence features in their bid to survive a prolonged price war in the world's largest auto market. The competition has shifted from extending battery range to adding driver-assist systems and using more powerful automotive chips. Now, automakers are focusing on a suite of in-car AI features, with over 50 car brands now using ByteDance's Doubao AI model in 145 car models and over 7 million vehicles. The shift towards AI reflects consumer demand for connected features such as Huawei-smartphone-compatible interfaces or voice-based assistants like Doubano. However, Stephen Dyer, partner and managing director and head of AlixPartners' Asia automotive and industrials consulting practice, predicts that Chinese companies will start competing more on the "outside-of-the-car experience" similar to luxury brands that offer exclusive lifestyle experiences.
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