China’s electric vehicle industry is moving beyond a prolonged price war into a new competition centered on artificial intelligence, as automakers increasingly use in-car AI features to attract buyers in an overcrowded market. Instead of competing only on price or battery range, companies are now racing to integrate voice assistants, driver-assist systems, and connected services powered by major tech firms. ByteDance’s Doubao AI chatbot has been deployed in over 145 car models and more than 7 million vehicles, while Alibaba’s Qwen model is also being integrated into cars from BYD and Volkswagen joint ventures, enabling features such as voice-controlled food ordering, hotel bookings, and ticket purchases. Analysts say this shift reflects a “feature war” in which most automakers quickly match each other’s technology, making long-term differentiation difficult. As a result, competition is expected to extend beyond the vehicle itself, with brands focusing more on ecosystem services and user experience rather than just hardware innovation or pricing.
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