Toyota, Nissan join forces with Tencent and Baidu to enter China’s AI arms race

Slowing demand for electric cars, growing trade tensions and questions about traditional Western automakers’ ability to attract Chinese customers will be talking points in Beijing as executives from the world’s top car brands gather at the Beijing auto show.

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of Japan Toyota Automotive will be associated with China Tencent Although Nissan will power BaiduThe cross-border collaboration underscores the importance of artificial intelligence for automakers, the companies said Thursday.

Separate announcements from Japan’s two biggest automakers at the Beijing auto show also highlighted Japanese manufacturers’ efforts to grapple with sweeping technological changes that have eroded their once-enviable position in the Chinese market.

Just a few years ago, Japanese car companies were among the best-known foreign brands in China. Lately, they have been guarded by local manufacturers. BYD Electric vehicles are grabbing market share with software loaded with software aimed at young drivers.

Gaming and social media giant Tencent and China’s leading search engine Baidu have led the race for generative AI in China.

Toyota, the world’s largest automaker by sales, will use technology from technology giant Tencent Technology in a Chinese-made passenger car that will be launched this year, said Xu Yiming, director of brand and communications at Toyota Motor China.

Companies will use Tencent’s strengths in big data, artificial intelligence and cloud computing to provide services, Xu said.

Nissan said it has signed a memorandum of understanding with Baidu to conduct research on artificial intelligence and so-called “smart cars”. Nissan said it will use Baidu’s generative artificial intelligence on its platform to study the feasibility of future technology developments.

The company will reportedly equip its Chinese cars with Baidu’s artificial intelligence products.

The partnerships also show how competitive China has become for automakers and even global giants like Toyota.

Foreign automakers are trying to prove they can maintain influence in China under pressure from a shift to electric vehicles, the rise of domestic brands and a price war.

Toyota avoided a major sales hit, but its sales fell. Honda car And Nissan took it.

The company’s sales in China fell 1.7% to 1.9 million vehicles in 2023, the second straight year of decline.

Toyota also showcased two new pure electric vehicle models for the Chinese market at the Beijing Auto Show.