BYD, China’s EV market leader and a key competitor to Tesla, will incorporate DeepSeek into its Xuanji vehicle software and offer preliminary self-driving features free across most models, including its entry-level Seagull hatchback priced at 69,800 yuan (US$9,575).
BYD shares peaked at a record-high last week following the DeepSeek collaboration announcement.
Major automakers Geely, Great Wall Motor, Chery Automobile, and SAIC Motor have also revealed plans to use DeepSeek in their digital cockpits.
Japanese auto giant Nissan also joined the trend, announcing its new N7 electric sedan will be the first joint venture with China’s Dongfeng to feature DeepSeek’s R1 technology.
DeepSeek gained international attention after releasing two advanced open-source AI models that achieve similar results to competitors while claiming to use significantly less computing power and cost.
Industry experts predict that 15 million cars — roughly two-thirds of China’s national sales in 2025 — will include preliminary autonomous driving systems.
The AI integration race is intensifying amid persistent price competition, with manufacturers discounting 195 car models from January to November last year, up from 150 models in 2023.
DeepSeek’s rapid adoption signals a new front in China’s EV market competition, where advanced AI features could become a crucial differentiator for consumer choice.
