Toyota and Nissan Join Tencent and Baidu in China’s AI Race

Toyota and Nissan, Japan’s two largest car manufacturers announced a strategic partnership with Chinese tech giants Tencent and Baidu to accelerate their artificial intelligence efforts in the world’s largest auto market. Come on cooperationunveiled at the Beijing Auto Show, highlights the critical importance ofIAcloud computing and big data in the rapidly developing automotive industry, especially in China, where electric cars and smart cars are gaining meteoric popularity.

Toyota, the world’s largest car manufacturer in terms of sales, is partnering with Tencent, a giant gaming and social media company with over a billion users. “The companies will provide services using Tencent’s capabilities in big data, AI and cloud computing”, said Yiming Xu, Brand and Communications Director of Toyota in China. A Toyota passenger car made in China with Tencent technology will go on sale later this year.

At the same time, Nissan sign an agreement with Baidu, China’s leading search engine, to jointly conduct research on AI and smart cars. Nissan plans to use Baidu’s production AI on its platform to explore future technology developments and equip its Chinese models with Baidu’s latest AI products.

The partnership underscores fierce competition in China’s auto market, where foreign brands are struggling to stay relevant amid the transition to EVs, the rise of domestic brands and fierce price wars. “Demand for EVs in China has grown rapidly, but Toyota has struggled to gain market share due to aggressive pricing and marketing from domestic competitors.”, said Hiroki Nakajima, vice president and chief technology officer of Toyota.

Chinese tech giants are making big strides in the automotive industry, anticipating rapid growth. Tencent has also established partnerships with Audi and Mercedes-Benz, while Xiaomi, Huawei and other tech players are jumping on the bandwagon. The integration of in-car apps and smartphones is fueling the popularity of EVs in China, making them very convenient for tech users.

As the global automotive industry undergoes seismic changes driven by electrification, automation and digitalization, collaboration between traditional automakers and technology powerhouses is increasingly important. The Toyota-Tencent and Nissan-Baidu collaborations exemplify this trend, as industry leaders team up with AI pioneers to navigate the rapidly changing landscape and stay at the forefront of the global automotive market.