China’s electric vehicle industry is undergoing a significant transformation, shifting from traditional EVs to “EIVs” or Electric Intelligent Vehicles, according to Pan Jian, cochair of CATL, Tesla’s key battery supplier. Speaking at the World Economic Forum in Davos, Pan explained that the “I” in EIV stands for “intelligent,” reflecting the integration of artificial intelligence and advanced software into electric vehicles.
Pan emphasized that China’s EV market success stems from the “perfect marriage between E and I,” where electric powertrains enable intelligent features that traditional combustion-engine vehicles cannot offer. While a CATL spokesperson noted the term isn’t yet widespread, it’s gaining traction as Chinese automakers compete fiercely in the world’s largest EV market.
The shift toward AI-powered vehicles is evident across China’s automotive landscape. Xiaomi, the smartphone giant, launched its $30,000 SU7 sedan in March featuring advanced autonomous-driving capabilities and voice recognition that allows drivers to control household appliances from their vehicles. Meanwhile, EV startup Xpeng introduced its $26,000 P7+ in November, marketing it as the world’s first “AI-defined” vehicle.
Established players are also investing heavily in intelligent technology. BYD, Tesla’s primary rival, announced a massive $14 billion investment in artificial intelligence and self-driving technology in January 2024, signaling the industry’s commitment to AI integration.
According to Zoe Zhang, an analyst at energy consultancy Rho Motion, the term “EIV” has become increasingly common in China as automakers battle for relevance through advanced cockpit systems and software. Zhang predicts manufacturers will increasingly compete on user experience rather than just hardware specifications.
Chinese automakers are building their own AI hardware, including custom chips, which are easier to integrate into EVs than traditional vehicles. This technological advantage has attracted consumer electronics companies like Xiaomi and Huawei to pivot into the automotive sector.
Pan also highlighted China’s software engineering talent pool, cultivated by tech giants like Alibaba and Tencent, as a competitive advantage. With EV sales in China projected to rise 20% this year to over 12 million units—outpacing conventional car sales for the first time—the intelligent vehicle revolution appears poised for explosive growth.
Key Quotes
We actually no longer call it EV. We call it EIV. ‘I’ stands for intelligent.
Pan Jian, cochair of CATL and Tesla’s key battery supplier, introduced this terminology shift at the World Economic Forum in Davos, signaling a fundamental rebranding of China’s electric vehicle industry to emphasize AI integration.
E enables I, so that offers a whole suite of new features to consumers, which cannot be offered with traditional combustion-engine cars.
Pan explained how electric powertrains create the technological foundation for AI features, highlighting why intelligent systems are more naturally suited to EVs than conventional vehicles.
I think more and more, the car manufacturers are going to be really competing over the user experience.
Zoe Zhang, analyst at Rho Motion, identified the strategic shift in China’s automotive market where AI-powered user experience, rather than traditional metrics, is becoming the primary competitive differentiator.
It’s easier to incorporate those intelligent functions on EVs than traditional combustion-engine vehicles because of the chips.
Zhang explained the technical advantage EVs have for AI integration, which has attracted consumer electronics companies like Xiaomi and Huawei to enter the automotive market with their software expertise.
Our Take
The rebranding from EV to EIV isn’t mere marketing—it reflects a strategic recognition that AI is now the core value proposition in electric vehicles. China’s approach mirrors how smartphones evolved from communication devices to intelligent platforms, suggesting vehicles are undergoing a similar transformation. The massive investments by BYD and the entry of tech giants like Xiaomi demonstrate that automotive manufacturing is converging with AI development. This creates a significant challenge for Western automakers who may excel at vehicle engineering but lack the software talent pools and AI ecosystems that Chinese companies have cultivated. The fact that Chinese EVs are achieving price points of $26,000-$30,000 while including advanced AI features suggests a cost-performance advantage that could reshape global automotive competition. As China’s EV sales surpass conventional vehicles for the first time, the EIV concept may become the template for the industry worldwide.
Why This Matters
This development represents a fundamental shift in how the automotive industry conceptualizes electric vehicles, moving beyond electrification to AI-powered intelligent systems. China’s embrace of EIVs signals that the future of transportation lies not just in clean energy, but in artificial intelligence integration that transforms vehicles into connected, autonomous platforms.
The implications extend far beyond China’s borders. As the world’s largest automotive market adopts AI-defined vehicles, global automakers face pressure to match these capabilities or risk obsolescence. The $14 billion investments by companies like BYD demonstrate that AI is becoming the primary battleground for competitive advantage in the EV sector.
For consumers, this trend promises vehicles that are increasingly autonomous, connected to smart home ecosystems, and capable of continuous improvement through software updates. For the AI industry, it opens a massive new market for chips, algorithms, and machine learning systems. The convergence of China’s software engineering talent, manufacturing prowess, and aggressive EV adoption creates a formidable ecosystem that could define global automotive standards for the next decade.
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Source: https://www.businessinsider.com/china-ev-industry-buzzword-electric-intelligent-vehicles-2025-1