China’s leading automaker, BYD BYDDY, is outpacing Tesla Inc. TSLA in the deployment of AI-powered driving technology in the Chinese market. The company has launched a new system specifically for budget vehicles.
What Happened: BYD has rolled out a new driving-assistance technology system, known as “Eyes of God” in Chinese, for its low-cost mass-market vehicles. This move comes as Tesla faces difficulties in launching its latest driver-assistance software in China due to regulatory hurdles, reported the South China Morning Post.
The Chinese automaker has partnered with DeepSeek to roll out driver-assist technology for its electric vehicles. This collaboration is aimed at leveraging DeepSeek’s AI capabilities to enhance BYD’s offerings
During a live-streamed launch event in China, late Monday, BYD’s Founder and Chairman Wang Chuanfu stated that advanced smart driving will evolve into a standard safety feature, much like seatbelts and airbags.
BYD’s “Eyes of God” system will be integrated into all its models, including an electric compact hatchback priced at approximately $9,600, with the system included in the cost.
Nomura analysts said, “BYD is changing its competition strategy from price cutting last year to functions’ upgrade in 2025.”
Why It Matters: The launch of BYD’s new system underscores the company’s strategic move to capitalize on the regulatory challenges faced by Tesla in China. Earlier this year, Tesla CEO Elon Musk blamed U.S. and Chinese regulations for the delay in the release of the company’s “Full-Self Driving” software. Despite Musk’s repeated claims that the software could be available in China by the end of 2024, it has not yet received approval from Beijing.
The successful deployment of the “Eyes of God” system in its mass-market vehicles signifies BYD’s commitment to making advanced driving technology accessible to a broader consumer base. This is in sharp contrast to Tesla’s plan to charge $8,000 for the installation of its ‘Full Self-Driving system’ in the U.S., in addition to a $99 monthly subscription. The Elon Musk-led EV giant is likely to begin testing on the mainland later this year.
However, Brian Tycangco, an analyst at Stansberry Research, warned that the Chinese EV giant’s association with DeepSeek “increases the likelihood that BYD vehicles will face more difficulties entering Western markets like the U.S. due to national security reasons.”
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