DeepSeek’s breakthrough AI model is rapidly transforming China’s electric vehicle industry, with major automakers including BYD, Geely, and Great Wall rushing to integrate the technology into their vehicles. The Chinese AI lab’s R1 reasoning model, released last month, has become a symbol of national technological pride and is now driving fierce competition among the country’s EV manufacturers.
BYD, Tesla’s primary Chinese rival, announced at a Monday event that it would incorporate DeepSeek’s AI into its Xuanji vehicle software and assisted driving technology to enhance its vehicles’ AI capabilities. The announcement came as part of the unveiling of a new advanced autonomous driving system, signaling the automaker’s commitment to staying at the forefront of AI-powered transportation.
Geely, which owns premium EV brands Zeekr and Polestar, is integrating DeepSeek’s R1 model into its Xinrui AI system, according to local media reports. Meanwhile, Great Wall Motors confirmed to Reuters that it has already incorporated DeepSeek’s technology into its “Coffee Intelligence” connected vehicle system. Even legacy automaker Dongfeng has joined the trend, announcing that vehicles produced by its joint venture with Nissan would feature DeepSeek’s models.
The rush to adopt DeepSeek’s technology follows the AI model’s dramatic impact on global markets. When DeepSeek released its R1 reasoning model, it caused significant upheaval in financial markets and wiped nearly $600 billion off chipmaker Nvidia’s market value. The model’s ability to match the performance of equivalent AI systems from US tech giants like OpenAI, while reportedly being trained at a fraction of the cost, has made it particularly attractive to cost-conscious Chinese manufacturers.
DeepSeek’s success has elevated CEO Liang Wenfeng to celebrity status, with local media dubbing him the “AI hero of Guangdong.” However, the integration of DeepSeek’s AI into vehicles is driven by more than just national pride. Chinese consumers are increasingly demanding “EIVs” (Electric Intelligent Vehicles) packed with cutting-edge AI technology, self-driving capabilities, and advanced in-car software systems. This consumer preference is pushing automakers to rapidly adopt the latest AI innovations to maintain their competitive edge in China’s highly competitive and tech-obsessed electric vehicle market.
Key Quotes
AI hero of Guangdong
Local Chinese media has given this title to DeepSeek CEO Liang Wenfeng, reflecting the national pride and celebration surrounding DeepSeek’s achievements. This demonstrates how the AI breakthrough has transcended technical accomplishment to become a symbol of Chinese technological prowess.
Chinese customers are increasingly demanding so-called ‘EIVs’ packed with AI technology, self-driving tech, and advanced in-car software
This observation explains the commercial motivation behind automakers’ rush to integrate DeepSeek. Beyond national pride, Chinese EV manufacturers are responding to genuine market demand for AI-enhanced vehicles, making DeepSeek integration a competitive necessity rather than just a patriotic gesture.
Our Take
The rapid integration of DeepSeek into China’s EV ecosystem reveals a strategic pattern: Chinese companies leveraging cost-effective domestic AI solutions to accelerate innovation cycles. This mirrors how Chinese EV makers disrupted global markets with affordable electric vehicles, now applying the same playbook to AI technology.
What’s particularly significant is the speed of adoption — major automakers are integrating DeepSeek within weeks of its release, suggesting both technical compatibility and strategic urgency. This agility contrasts with typically slower Western automotive development cycles.
The convergence of China’s two most disruptive industries — AI and EVs — creates a formidable competitive force. If DeepSeek’s AI proves effective in real-world driving applications at lower costs, it could establish new benchmarks for autonomous driving technology globally. Western automakers and AI companies should view this as a wake-up call: the competition in AI-powered transportation is intensifying, and cost-effective innovation may trump pure technical sophistication.
Why This Matters
This development represents a pivotal moment in the convergence of AI and automotive technology, demonstrating how breakthrough AI models can rapidly reshape entire industries. DeepSeek’s integration into major Chinese EV brands signals a potential shift in the global automotive technology landscape, where Chinese manufacturers are leveraging cost-effective AI solutions to compete with Western rivals.
The story highlights China’s growing AI independence and innovation capability, challenging the dominance of US tech companies in artificial intelligence. DeepSeek’s ability to match OpenAI’s performance at reportedly lower costs could democratize access to advanced AI technology, particularly in hardware-intensive applications like autonomous driving.
For the automotive industry, this marks an acceleration in the race toward AI-powered vehicles. Chinese consumers’ demand for “EIVs” is setting new standards for what vehicles should offer, potentially influencing global automotive trends. As Chinese EV makers integrate advanced AI at scale, Western automakers may face increased pressure to enhance their own AI capabilities or risk falling behind in the world’s largest automotive market. This could fundamentally alter competitive dynamics in the global EV industry.
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Source: https://www.businessinsider.com/all-chinese-automakers-adding-deepseek-ai-ev-cars-2025-2