Chinese EV makers shift focus from price wars to AI capability: Morgan Stanley

The focus of competition for Chinese Electric Vehicles (EVs) is shifting from prices to Artificial Intelligence capability, as carmakers try to manage weakening demand amid tightened regulations, according to Morgan Stanley.The push in AI would likely bring models with conditionally Autonomous Driving capability, or Level 3 (L3), to market, said Tim Hsiao, head of the Greater China auto and shared mobility research team at Morgan Stanley, in a recent interview with the China-morning-post" class="entity-link entity-organization" data-entity-id="12558" data-entity-type="organization">South China Morning Post. It might even soon become the norm, advancing from the current L2 or L2+, he added.“It will be difficult for carmakers to differentiate themselves by introducing new EVs,” Hsiao said. “To do so, they will need to upgrade their Autonomous Driving AI capabilities, both for driving and the in-car experience.”