Apr 25 2024: Toyota Motor and Nissan have unveiled strategic collaborations with Chinese tech giants Tencent and Baidu, respectively, highlighting the critical role of artificial intelligence (AI) in the automotive sector, particularly within China.
The announcements made at the Beijing auto show underscore the Japanese automakers’ efforts to adapt to technological disruptions that have impacted their positions in the Chinese market. While Japanese brands were once dominant in China, local manufacturers like BYD have surged ahead, especially with software-rich electric vehicles targeting younger demographics.
Toyota, the world’s largest automaker, will integrate Tencent’s technology into a passenger vehicle manufactured in China, slated for release this year. This partnership will leverage Tencent’s expertise in big data, AI, and cloud computing to deliver innovative services to consumers.
On the other hand, Nissan has entered a memorandum of understanding with Baidu to explore AI and “smart car” research. Nissan aims to harness Baidu’s generative AI capabilities to evaluate future technological developments and integrate Baidu’s AI products into its vehicles in China.
These alliances underscore the intense competition in China’s automotive industry, where foreign automakers are striving to maintain relevance amidst the shift to electric vehicles, the rise of local brands, and pricing challenges. Although Toyota has experienced sales declines in China recently, the company is taking steps to rejuvenate its market presence, including unveiling new battery electric vehicle models at the Beijing show.