DeepSeek Accelerates AI Integration in China’s EV and E-Scooter Markets
DeepSeek is making significant strides in integrating artificial intelligence (AI) into the mobility sector in China. This powerful influence extends from electric vehicles (EVs) to e-scooters, highlighting the growing trend of AI adoption among various modes of transport across the country. Initially, the technology saw traction predominantly in the EV market, but its recent expansion into the realm of electric two-wheelers indicates a broader revolution in transportation.
DeepSeek's Transformation of the Automotive Industry
According to reports, numerous Chinese automotive manufacturers have announced plans to incorporate DeepSeek’s AI technology into their vehicles within a span of just two weeks. Noteworthy industry players such as BYD, Geely, Great Wall Motor, and others are at the forefront of this movement. Emerging companies like Leapmotor are also joining the ranks. BYD stands out by committing to integrating DeepSeek's technology within its Xuanji vehicle software platform. This initiative will enable BYD to provide a variety of self-driving capabilities across almost all its models without increasing costs, making advanced autonomous driving accessible to a wider audience.
This initiative encompasses around 20 different models, one of which is the budget-friendly Seagull hatchback, currently priced at 69,800 yuan (or about US$9,575), making it an appealing option for the cost-conscious consumer.
The Entry of E-Scooter Brands into the AI Revolution
Recently, DeepSeek's impact has been felt in the e-scooter sector as well. Manufacturers like Xiaomi-backed Segway-Ninebot Group and Nasdaq-listed Niu Technologies are actively working to integrate AI into their electric two-wheelers. Segway-Ninebot announced a commitment to deeply incorporate DeepSeek into its product suite, promising enhanced features through its mobile application, such as AI-powered content generation, data analytics, personalized rider recommendations, and intelligent services.
Moreover, Niu Technologies confirmed that it has already embedded DeepSeek’s large language models (LLMs) as of February 9 of this year. The company aims to leverage this technology for various applications, including:
- Driver assistance systems
- Riding safety features
- AI-driven travel companions
- Voice interaction capabilities
- Intelligent service recommendations
The Yadea Group, recognized as the world's largest electric two-wheeler manufacturer by sales volume, also plans to integrate DeepSeek's technology into its ecosystem. This quick shift towards adopting DeepSeek illustrates a rising trend called "DeepSeek fever," characterized by cost-effective and efficient AI integration.
The Cost-Effectiveness of DeepSeek's Models
DeepSeek boasts open-source AI models such as DeepSeek-V3 and DeepSeek-R1 that operate with significantly lower computing power and costs compared to conventional large language model projects. This accessibility is leading to a fear among automakers that vehicles without DeepSeek's integration will struggle to retain market share. Industry analysts predict that approximately 15 million cars, which could amount to roughly two-thirds of total national sales in China, will be equipped with initial autonomous driving systems by 2025, showcasing the transformative impact of this technology.
As the adoption of DeepSeek technology accelerates, it comes at a time when the export market for electric two-wheelers from China is blossoming. Customs data indicates that the value of these exports soared by 27.6% to reach US$5.82 billion in 2024, surpassing the previous record high of US$5.31 billion in 2022. The volume of exports also climbed by 47%, totaling 22.13 million units.
Research by IDC emphasizes how DeepSeek's open-source model has nurtured an innovative ecosystem, facilitating collaboration among developers on platforms like GitHub to improve optimization and security testing. The collective effort is anticipated to enhance companies' abilities to employ, train, and optimize large language models successfully.
The Future Outlook
As DeepSeek's mobility integration continues to impact the transportation sector in China, the outlook appears promising. Names like Zhang Yongwei, the general secretary of China EV100, have forecasted major advancements in autonomous driving technology integration, which underscores the potential this revolutionary AI technology holds for reshaping China's transport landscape.
The rapid advancements made by DeepSeek signal a pivotal change in how mobility technology can be transformed through efficient AI integration. With widespread implementation across both automobiles and e-scooters, the transportation sector may evolve in unimaginable ways, maximizing convenience and enhancing performance for consumers.
