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The automakers announced on Thursday that Nissan will partner with Baidu and Toyota Motor of Japan will partner with Tencent of China. These cross-border alliances underscore the significance of artificial intelligence to the automotive industry.
Nissan and Toyota Unveil New AI Partnerships at Beijing Auto Show
Reuters reports that two of Japan's largest automakers made separate announcements at the Beijing auto show, emphasizing their efforts to adapt to the enormous technological shifts that have upended their formerly enviable positions in the Chinese market.
Only a few years ago, Japanese automobile manufacturers were among China's most recognizable foreign brands. Recently, their position has become precarious, as software-laden electric vehicles targeted at younger drivers have seized market share from local manufacturers led by BYD.
Toyota's sales have fallen, but it has dodged the harsh blows that Honda Motor and Nissan have endured. In 2023, its sales in China fell 1.7% to 1.9 million vehicles, marking the second consecutive year of decrease.
Chinese Tech Giants Baidu and Tencent Lead AI Innovation in Automotive
China's top search engine, Baidu, and the gaming and social media powerhouse Tencent have led the nation's generative AI race.
Yiming Xu, Toyota's head for brand and communications for China, said that a China-made passenger vehicle going on sale this year will have technology from tech giant Tencent technology built into it.
As per Yahoo UK, Nissan was scheduled to sign a memorandum of understanding with Baidu, a Chinese AI and search engine business. According to the company President, Makoto Uchida, Nissan must adapt to the demands of Chinese consumers and the speed at which the market is changing.
Nissan said it will investigate the viability of upcoming technological advancements using Baidu's generative AI on its platform.
It added that Baidu's AI solutions will be installed in its Chinese automobiles.
The Impact of AI on China's Competitive Automotive Market
The collaborations demonstrate how fiercely competitive China has grown for automakers, including multinational behemoths like Toyota.
During the Beijing show, Toyota also unveiled two new battery-electric car models for the Chinese market.
Photo: John Cameron/Unsplash
