AI Innovations in Automotive Industry: Volkswagen and Xpeng's Strategies

Volkswagen Group has announced plans to manufacture its own advanced semiconductors in China to support the development of autonomous vehicles. This move comes as the company aims to strengthen its competitive edge in the world’s largest automotive market against rising competition, particularly from electric vehicle manufacturers. According to the South China Morning Post, Volkswagen is collaborating with Horizon Robotics to create a system-on-a-chip, or SoC, which is expected to be delivered within the next three to five years. The SoC will be specifically designed to process data from the cameras and sensors of autonomous vehicles, boasting a computing power between 500 and 700 tera operations per second, nearly matching Nvidia's latest Thor processor that can perform 700 TOPS. Ralf Brandsatter, CEO of Volkswagen China, emphasized that this initiative is part of the company’s strategy to master core technologies that will shape the future of mobility, stating that the chip will be developed with Chinese customers in mind.

In a parallel development, Chinese electric vehicle maker Xpeng is set to introduce robotaxi services that leverage Alibaba's mapping service, Amap, by 2026. This announcement highlights Xpeng’s application of artificial intelligence in creating marketable services. According to the South China Morning Post, Xpeng plans to roll out three robotaxi models along with other innovations including a humanoid robot and two flying cars. Xpeng's CEO, He Xiaopeng, indicated that the new vehicles will be equipped with advanced AI capabilities, enabling them to navigate challenging scenarios more effectively than competitors.

A comparative study cited by He Xiaopeng reveals that Xpeng's new vision language action AI model performed significantly better than Tesla's Full Self Driving system during tests. Over a 54-minute route, Tesla's system required seven disengagements from autonomous driving, while Xpeng’s vehicle only needed one human intervention in the same time frame. This suggests that Xpeng's AI advancements may enhance the reliability and safety of their autonomous vehicles.

Furthermore, Xpeng’s partnership with Amap will enable users to hail self-driving taxis through Alibaba’s mapping app, potentially revolutionizing the way consumers access transportation services. Amap's CEO, Guo Ning, noted the strategic choice of collaboration, emphasizing the integration of their services to create a seamless experience for users in mainland China. As both Volkswagen and Xpeng push forward with their AI-driven strategies, the automotive industry is witnessing a significant shift towards more intelligent, autonomous solutions, which could have profound implications for safety and technological advancement in transportation.