BYD's new self-driving tech aims to rival Tesla with DeepSeek AI integration

DeepSeek AI helps BYD introduce affordable self-driving tech, making it available in budget models.

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Chinese automaker BYD has unveiled plans to roll out advanced self-driving technology in nearly all of its vehicles, including budget models priced below $10,000. The company has also announced its collaboration with AI startup DeepSeek, which will provide software to enhance its autonomous driving systems.

BYD, which competes directly with Tesla in China and increasingly in international markets, is now poised to challenge its rivals with a new generation of smart vehicles.

The company’s “God’s Eye” autonomous driving system will be integrated into at least 21 models, including the Seagull budget hatchback priced at ¥69,800 ($9,550). This system includes features such as remote parking and autonomous highway navigation, which were previously reserved for more expensive vehicles. Tesla offers similar features in its vehicles, starting from $32,000.

“At BYD, we believe autonomous driving is no longer a distant dream. It’s becoming a necessary tool, much like safety belts or airbags,” said BYD’s founder, Wang Chuanfu, at a live-streamed event on Monday.

The integration of DeepSeek’s AI technology is expected to improve the performance and personalisation of BYD’s self-driving system. DeepSeek made headlines last month with its innovative chatbot, which is said to rival US competitors at a fraction of the cost.

The partnership with DeepSeek is seen as a strategic move for BYD, giving it access to high-quality AI technology that can compete with offerings from international firms.

Shares of BYD surged 4.5% to a record high in Hong Kong on Tuesday, reflecting investor optimism following the announcement. This increase comes after the company’s stock had already risen by nearly 20% in anticipation of the event.

China’s automotive market, the largest in the world, is currently experiencing a prolonged price war as electric vehicle (EV) manufacturers compete for market share. In 2024, nearly 11 million electric and hybrid vehicles were sold in China, a more than 40% increase from the previous year. BYD accounted for around 4.2 million of those sales, surpassing Tesla’s quarterly revenue for the first time in Q3 2024.

BYD’s move to integrate self-driving technology into budget-friendly models marks a significant shift in the company’s strategy. “We’re no longer focused solely on price cutting. In 2025, we’re upgrading our functions to stay ahead of the competition,” said analysts from Nomura.

The company is aiming to set itself apart from competitors by offering advanced features in affordable vehicles. According to Tu Le, founder of Sino Auto Insights, “This puts BYD firmly back in the driver’s seat, dictating the pace of technological features.”

The decision to incorporate autonomous driving into budget vehicles is a bold move for BYD, but the company is confident that the technology will improve road safety and offer better driving experiences. “Smart vehicles can monitor road conditions and avoid dangers. Over time, big data and AI models will only make these systems smarter,” said BYD at the event.

In the fiercely competitive Chinese electric vehicle market, several other automakers, including Xpeng, Li Auto, Nio, and Huawei partners, have already rolled out driver-assistance features.

However, BYD’s introduction of these features in low-cost models may set the company apart. Tesla’s “Full-Self Driving” system, on the other hand, has yet to receive approval from Chinese regulators.

BYD’s integration of DeepSeek’s AI is also seen as a significant milestone in the development of China’s homegrown AI industry. The collaboration enhances BYD’s ability to offer intelligent features that can compete with foreign counterparts.

However, analysts caution that this may make it more difficult for BYD to enter Western markets, where national security concerns surrounding Chinese technology could present obstacles.

As BYD continues to innovate and expand, the company’s commitment to integrating advanced self-driving technology into affordable vehicles is expected to shape the future of the electric vehicle industry.

With the integration of DeepSeek AI, BYD is preparing to lead the charge in both technology and price competitiveness, cementing its position as one of China’s top EV manufacturers.