Chinese AI startup DeepSeek is making rapid inroads into the country’s automotive sector as major carmakers like Geely and BYD integrate its technology into their electric vehicles (EVs).
DeepSeek recently gained global attention for its cost-effective AI model. It is now helping Chinese automakers enhance connected car features and self-driving capabilities, further strengthening their positions in the competitive EV market.
Geely’s push for more brilliant cars
Geely, the parent company of Volvo, Polestar, and Zeekr, is taking significant steps to improve AI integration in its vehicles. At CES, Geely announced plans to create a “Full-Domain AI for Smart Vehicles,” which aims to enhance the driving experience through voice commands and autonomous capabilities.
Initially designed as an in-house effort, the company has partnered with DeepSeek to refine its AI model using distillation training.
By combining its technology with DeepSeek’s R1 model, Geely hopes to improve its AI’s ability to understand commands and deliver a more responsive experience. This enhanced AI will feature in the next generation of Geely’s smart connected cars as the company aims to stay competitive in the evolving automotive landscape.
Voyah and BYD Follow Suit
Geely is not alone. Dongfeng’s premium EV brand, Voyah, has also embraced DeepSeek’s AI. Voyah’s Courage EV and Dream MPV will become the first mass-produced vehicles with the AI tool integrated into their innovative cockpit systems.
An over-the-air update scheduled for February 14 will enhance these vehicles’ responsiveness and accuracy in handling commands and software operations.
Meanwhile, BYD, Tesla’s main rival in China, is rolling out its advanced “God’s Eye” autonomous driving system, incorporating DeepSeek’s AI. The system, featuring capabilities like remote parking and highway navigation, will be available on 21 models, including budget-friendly cars like the Seagull hatchback, priced at just under $10,000.
BYD founder Wang Chuanfu described self-driving technology as an essential tool that would soon become as indispensable as seat belts or airbags.
The announcement has also boosted BYD’s market position, with its shares rising 4.5% to a record high in Hong Kong on Tuesday. Analysts believe BYD’s aggressive push into AI-driven automation could trigger a new price war in China’s already highly competitive EV market. The company sold around 4.2 million electric and hybrid vehicles last year, surpassing Tesla’s quarterly revenue for the first time in 2023.
DeepSeek finds its way into laptops and robots
DeepSeek’s technology isn’t limited to EVs. It has also gained traction in China’s broader tech sector. Lenovo has integrated DeepSeek’s AI model into its Xiaotian AI assistant, enhancing tasks such as document summarisation, transcription, and code generation on its PCs.
Lenovo plans to expand Xiaotian’s capabilities across tablets and smartphones shortly.
Shenzhen-based robotics firm UBTech is also testing DeepSeek’s AI in its humanoid robots, improving their ability to understand and perform tasks in complex environments, including factories.
What about global scrutiny
DeepSeek’s rise highlights the highly collaborative nature of China’s tech and automotive industries. Unlike the more fragmented approach in Western markets, Chinese companies often work together to accelerate innovation across sectors.
However, the rapid integration of DeepSeek’s AI may invite scrutiny from abroad. Some analysts warn that the US government could impose export bans on products using DeepSeek technology, posing challenges for Chinese brands like Geely, which has a significant presence in Western markets.
Despite these potential hurdles, DeepSeek’s momentum reflects a broader push in China to leverage AI as a competitive advantage in EVs and other hi-tech industries. As global demand for AI-driven solutions grows, China’s coordinated efforts to integrate AI across multiple sectors signal its intent to lead in the next phase of technological innovation.
