Tech suppliers steal spotlight at Beijing auto show as automotive AI transforms China's car industry

Tech Suppliers Command Attention at Beijing Auto Show

The Beijing auto show opened to the public with 1,500 vehicles spanning a site roughly the size of 50 soccer pitches, but the real stars weren't the cars themselves. Technology suppliers emerged as the dominant force, showcasing innovations that position them as critical partners for both Chinese automakers and foreign competitors struggling to maintain relevance in the China auto market 1

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. Huawei's intelligent car business took over a nearby stadium to unveil its new assisted driving system, which the company claims can reduce collisions by 50% compared with its predecessor 1

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. The telecommunications giant also introduced Celia, an in-car AI agent capable of converting vague destination descriptions into precise routes and itineraries.

CATL, the world's largest battery maker valued at $301 billion, displayed a flying car mounted on a towering podium while announcing breakthrough products including a battery offering over 1,000 km range and another that charges from 10% to 98% capacity in under seven minutes 1

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. The company unveiled its new "Shenxing" battery capable of charging from 10% to 98% in only about six-and-a-half minutes 3

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. BYD placed a giant freezer at its stand center, showcasing its fast-charging system's ability to power batteries even at minus 30 degrees Celsius 1

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Foreign Automakers Partner with Chinese Tech to Compete

Foreign car companies are finally catching up with Chinese rivals on technology as they battle a sales slump in the world's largest car market 2

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. Volkswagen, the largest overseas automaker by market share in China, unveiled its new electric ID.UNYX 08 featuring advanced driver-assist systems, a fast-charging battery with around 700 km range, and even a refrigerator 1

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. A partnership with $16 billion Xpeng played a key role in engineering the underlying electrical architecture, while $14 billion Horizon Robotics helped develop an in-car AI agent that can order the driver's favorite coffee during morning commutes 1

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Cadillac announced its first car with driver-assist technology for China: a three-row luxury electric SUV priced at 468,000 yuan ($68,000) and 508,800 yuan, co-developed with Chinese autonomous driving startup Momenta 2

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. Hyundai officially launched its all-electric IONIQ brand in China, also featuring advanced driver-assist co-developed with Momenta and voice-control functions using an AI assistant running on a Qualcomm Snapdragon 8295 chipset 2

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. Global manufacturers' market share rose to 32% in the first three months of the year from 30% last year, marking the first uptick since 2020 1

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Automotive AI Becomes National Priority Under AI Plus Mandate

China's auto industry is racing to embed artificial intelligence in cars following Beijing's AI Plus national project, which aims to integrate AI systems into manufacturing, healthcare, and almost every corner of the economy 4

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. The initiative seeks to break China's dependence on high-end semiconductors, a trade chokepoint dominated by the U.S. 4

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. "There's no longer a distinction between a technology company and a car company," Nissan Motor China chief Stephen Ma told reporters 4

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Xpeng updated its AI model to allow drivers to give commands like "park near the entrance to the shopping center" rather than designating a spot on a map, with vehicles using cameras to navigate even without mapping or coordinates 4

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. Xiaomi released an updated AI model featuring its HyperOS operating system that allows drivers to make restaurant reservations, place coffee orders, and compile notes from the road, while detecting stress levels to adjust lighting and music 4

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. Horizon Robotics launched its Starry 6 processor integrating cockpit and driving functions with the ability to handle up to 12 screen displays in a vehicle 4

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Intelligent Driving Systems Drive Revenue as Domestic Sales Decline

While car sales in China fell by a fifth in the first quarter compared with 2025, automakers are doubling down on the vast domestic market rather than retreating 1

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. Over 80 new models launched in March alone, exceeding the total number of reveals in the U.S. over an entire year, according to analysts at Omdia 1

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. Sales of passenger cars in China dropped 23% in the January-March quarter from a year earlier to around 4 million vehicles, but exports jumped 63% to almost 2 million vehicles 3

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In China's cut-throat domestic market, nearly every major carmaker is investing heavily in the software and computing power needed to make hands-free driving a reality as they compete to offer additional perks and find new revenue streams 5

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. Huawei announced it would invest 18 billion yuan ($2.6 billion) in smart driving technology research and development this year alone, anticipating its systems will be used in 100 models by year-end, double the current 50 1

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. The company revealed plans to invest up to 80 billion yuan (£8.7 billion) over the next five years to develop autonomous driving software and computing power 5

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Technology Suppliers Position for Global Expansion

CATL's revenue and net profit both expanded roughly 50% in the first quarter, while Huawei's auto unit increased sales by over 70% last year with the 7-year-old venture already profitable 1

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. CATL hiked its research budget by 19% to $3.2 billion in 2025 and plans to raise another $5 billion via a share sale in Hong Kong 1

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. Leading tech providers are becoming sought-after brands in their own right, with some carmakers like Nissan namedropping CATL in marketing materials, while others working with Huawei display their cars in the company's flagship store in Beijing's Wangfujing shopping district 1

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The hypercompetitive Chinese market has pulled vehicle prices down by a fifth over the past two years, according to AlixPartners 3

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. While few of the new technologies showcased may be exported to overseas markets in the short term due to regulatory and safety challenges, they signal capabilities that can be refined and adapted for global markets over time 3

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. Geely announced plans to deploy thousands of robotaxis globally next year through its ride-hailing arm Caocao, competing with U.S. firms like Waymo 5

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. Chinese robotaxis are expected on London streets this year as Lyft and Uber announced partnerships with Baidu to use its self-driving software 5

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