The fight in China's auto market has shifted from electrification to intelligent driving, as leading new energy vehicle (NEV) maker BYD makes intelligent driving a standard feature in its entry-level vehicle models at no extra cost, drawing in its competitors and triggering intense competition in the domestic market.

China's automakers are turning to DeepSeek's large language model (LLM) to power next-generation smart cockpits, signaling a new era of AI-driven vehicle intelligence, according to industry sources.

Apple's grand vision for CarPlay 2.0, unveiled at WWDC 2022, aimed to dominate vehicle interfaces by integrating across multiple screens and controlling key functions—potentially sidelining traditional dashboards. The announcement rattled the auto industry, sparking fears that CarPlay could become a Trojan horse, encroaching on automakers' turf. At the time, 98% of new US vehicles supported CarPlay, and nearly 80% of buyers preferred it.

The Alliance for Automotive Innovation, composed of General Motors (GM), Toyota, Volkswagen, and others, has recently appealed to a US court to overturn a regulation set by the National Highway Traffic Safety Administration (NHTSA) during the Biden administration. This regulation mandates that by 2029, all new cars in the US must be equipped with Automatic Emergency Braking (AEB) systems. As Biden's ban constrained Chinese companies, this offered opportunities for Taiwanese manufacturers.

With CES 2025 just concluded, DIGITIMES hosted the "2025 CES Insights: Analyzing New Trends in AI Applications" forum on January 14, providing exclusive updates and insights from the show.

In recent years, CES has become a platform for automotive and display technology, with smart and electric vehicles stealing the spotlight. However, CES 2025 marked a shift, with fewer automotive brands present—Mercedes-Benz among the absentees.

DIGITIMES' analysis of the electrification sector at CES 2025 reveals four transformative areas reshaping the automotive industry: EV product innovation, smart charging technologies, ecosystem integration, and battery advancements.

Honda aims to double its hybrid electric vehicle (HEV) sales to 1.3 million units annually by 2030, introducing its next-generation "e:HEV" system for smaller, more efficient, and profitable models. The move targets compliance with stricter emissions standards set to take effect in 2025 while addressing rising demand in key markets.

Ensilience, a subsidiary of the Yuen Foong Yu (YFY) Group, announced on December 26 a partnership with Shin-Shin Bus to launch a groundbreaking "Smart Charging and Storage System Application for Virtual Power Plant Platform" project. This collaboration is Taiwan's first initiative to aggregate electric vehicle (EV) charging stations, integrate energy storage systems, and offer services via Taiwan Power Company's (Taipower) trading platform.

The European Union has imposed anti-subsidy tariffs on Chinese battery electric vehicles (BEVs), reaching nearly 50%, forcing NIO to consider aligning its prices with luxury automakers like Porsche. NIO CEO William Li indicated the move is unavoidable as the company grapples with rising costs and dwindling incentives.

China's automotive sector is witnessing a strategic shift from new energy vehicles to intelligent driving technology in 2024. At the forefront of this transformation is Huawei, whose advanced driving systems, powered by its revitalized self-developed chips, are gaining significant market traction. Leading this momentum is AITO, a key Huawei partner, which has posted record sales of new energy vehicles this year.

The Inflation Reduction Act (IRA), aimed at bolstering renewable energy and electric vehicles, has drawn sharp criticism from Donald Trump, who dismissed it as a "green new scam." While Trump contemplates a White House return, China's decades-long investment in green industries is poised to deliver significant benefits by 2025, marking its shift away from oil dependency.

China's electric vehicle (EV) sector sparked to life in 2014, marked by the emergence of pioneering startups like NIO, Li Auto, and XPeng Motors. In the five years that followed, over 60 new players entered the market, while 400 companies registered without ever producing a single vehicle.

The automotive industry faces unprecedented upheaval as traditional manufacturers from Europe, the US, Japan, and South Korea confront economic headwinds and weakening electric vehicle demand. Meanwhile, Chinese rivals leverage aggressive pricing strategies and technological innovation to outmaneuver global competitors, forcing established players to reimagine their futures.

Tesla's Model 3 has hit a roadblock in Germany's prestigious TÜV safety rankings, while Honda's Jazz demonstrates exceptional reliability in the latest assessment. The 2025 TÜV report, analyzing over 10.2 million vehicle inspections across 228 models between mid-2023 and mid-2024, reveals significant challenges for the American EV maker.

China's 4S dealership model, once a cash cow in the early 2000s, is unraveling under mounting pressure. The sector, which peaked around 2017, has been hit hard by fierce price wars and a market pivot toward domestic new energy vehicles (NEVs). From 2020 to 2024, over 10,000 dealerships are expected to shut down, with losses accelerating annually, according to the China Automobile Dealers Association (CADA).

Tesla plans to launch its Full Self-Driving (FSD) technology in China by early 2025, though regulatory approval remains uncertain. Domestic automakers are intensifying efforts to showcase their tech, with Xiaomi demonstrating automated parking on its SU7 EV. However, reports of parking mishaps have surfaced, prompting Xiaomi to cover repairs and offer compensation, though the actual number of incidents is unclear amid fierce market competition.

A comprehensive federal framework for autonomous vehicles is reportedly being planned by President-Elect Donald Trump's transition team to accelerate adoption and revitalize US leadership in advanced self-driving technology. Previous efforts under both the Trump and Biden administrations have failed, but the initiative is once again under the spotlight as China shifts focus from electric vehicles to intelligent driving.

Germany's rapid post-World War II economic growth was driven by advanced industrial technology, a robust workforce, and its globally renowned luxury car brands, which dominated the high-end automotive market for decades. However, recent years have seen this dominance wane, largely due to fierce competition from Chinese electric vehicle (EV) manufacturers. German automakers are losing their competitive edge in global markets.

Xiaomi CEO Jun Lei recently announced the company's strongest-ever quarterly performance, a remarkable achievement given China's current economic climate. However, challenges are emerging for the tech giant.

Semiconductor Week in Review (Nov 10 - 16): In a week dominated by seismic shifts in the semiconductor landscape, TSMC's suspension of sub-7nm chip supply to Chinese AI firms and postponement of its Arizona fab opening bookended a series of industry-reshaping developments, as geopolitical tensions continue to redraw the global tech supply chain map.

For the global automotive industry, Donald Trump's upcoming return to the White House may create greater challenges not for China's emerging automakers but for Germany's leading automotive giants: Volkswagen, Mercedes-Benz, and BMW. These three brands now find themselves in a "perfect storm," navigating pressures from multiple fronts.

The first two years under Donald Trump's second term could be "quite impactful" if policy changes are made on tax, deregulation, and crypto, according to Stefan Gratzer, managing director at J.P. Morgan Private Bank.

China's automotive industry is steering into an era of intelligent vehicles in 2024, propelled by advances in new energy technology. After years of hesitation, automakers are now forging partnerships with Huawei, encouraged by the tech giant's commitment to avoid manufacturing vehicles and its recent brand trademark sales. Major players like SAIC Audi, BYD, Changan, Dongfeng, and GAC have all aligned with Huawei.

The Telangana government has formed a partnership with Japanese technology firm Denso to establish the state as a premier hub for the automotive industry. This collaboration will integrate Denso's expertise into India's leading startup incubator, T-Hub.