BMW's Neue Klasse Will Utilize Alibaba's AI to Reclaim Its Position in China | Carscoops

      BMW is collaborating with Alibaba to incorporate advanced AI technology into its electric vehicles (EVs) targeted for the Chinese market, starting in 2026.

      The infotainment system will utilize Qwen AI, which will support conversational voice features. The Neue Klasse series will introduce AI-powered tools named Car Genius and Travel Companion.

      As tech companies like Huawei and Xiaomi enter the automotive sector, traditional manufacturers risk falling behind in an escalating tech competition. Given China’s massive market, with over a million EVs sold monthly, BMW is strategically aligning with Alibaba to enhance their future offerings with AI integration.

      Alibaba, widely recognized for its e-commerce platform, is also heavily invested in AI, committing over $50 billion to its Large Language Model (LLM), Qwen, in the next three years. The Neue Klasse models will be the first to feature this technology when launched in 2026.

      Qwen is already in use by several Chinese automakers, including Zeekr and Leapmotor, but the partnership with BMW marks a significant expansion for the platform into the global market.

      The collaboration will introduce two AI tools within BMWs: Car Genius and Travel Companion. These will incorporate Alibaba-backed Yan AI technology into BMW’s Intelligent Personal Assistant (IPA), enhancing user interaction and command execution while integrating seamlessly with digital platforms.

      The goal is to provide an AI-enhanced driving experience specifically designed for Chinese consumers. Reports indicate that Car Genius will assist with real-time vehicle needs, while Travel Companion will offer lifestyle services, smart trip planning, and recommendations based on user preferences, traffic conditions, and parking availability. BMW aims to set a new standard in user-focused mobility.

      China is a vital market for automakers, and with rising competition from local brands, BMW must not lag behind. Collaborating with Alibaba represents a proactive strategy for the Bavarian automaker.

      This partnership is especially crucial as BMW and MINI sales in China dropped by 13.4 percent in 2024, and forecasts for this year appear grim. By pursuing localized AI solutions, BMW seeks to enhance its brand appeal and keep pace with rapidly advancing domestic rivals.

      This relationship reflects a broader trend in the automotive industry, particularly in China, where software has become a key component in the competitiveness of EVs. Domestic companies like BYD and Xpeng are leading the AI innovation race, prompting legacy manufacturers to seek technological partnerships to remain relevant. BMW’s alliance with Alibaba is a direct response to these evolving market trends.

      Moreover, this deal emphasizes the increasing reliance of European automakers on China for digital technology. As noted by Mercedes-Benz’s Georges Massing, Europe lacks the necessary cloud and computational resources to effectively develop large AI models, leading traditional manufacturers to depend on collaborations with firms like Alibaba for advanced cockpit technologies.

      In a rapidly evolving market where innovation cycles are short, BMW’s partnership with Alibaba could be pivotal. As AI takes center stage in automotive differentiation, those manufacturers that successfully integrate it into the driving experience are positioned to shape the future of mobility.

      With the Neue Klasse launching in 2026 and equipped with Qwen-powered technology, BMW is making a significant investment in its future in China, hoping to achieve success through technological advancement.