To survive in China, global automakers tap local tech giants
Toyota, Hyundai, Mercedes-Benz and a host of other global automakers are increasingly turning to Chinese tech giants in a bid to claw back market share in one of the world’s largest—and fastest-changing—auto markets. In recent days, South Korea’s Hyundai Motor and Kia have unveiled plans to work with Chinese internet giant Baidu on mapping and artificial-intelligence technologies for auto-driving and vehicle software systems in China, while Nissan Motor said it would partner with Baidu on AI and Toyota has tapped gaming giant Tencent for help on AI models, cloud services and big data.
Mercedes-Benz, which saw sales fall last year in China, its single most important market, said it would sell models with an entertainment system featuring a popular mobile racing game from Tencent, helping make its cars a “personal arcade" for drivers. The tie-ups, many of them announced at the just-ended Beijing auto show, come as competition in China’s market is ratcheting up, both in the form of a monthslong price war and in the development of auto-driving and software systems that are making China’s homegrown brands some of the most technologically sophisticated in the world.
The innovations helped Chinese automakers sell more vehicles at home than their foreign rivals for the first time last year. A growing shift toward electric vehicles has also eroded the one-time advantage of global makers of internal-combustion-engine cars.
“Foreign automakers don’t want to lose their China market" and need to adapt, said CCB International analyst Qu Ke. “Chinese electric-vehicle makers are spoiling customers" in the suite of features being offered at relatively low prices, he said.
One of those features is auto-driving. Local players have invested
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