Tesla registers its AI-driven voice assistant in Shanghai; analysts say move deepens localization

US auto giant Tesla has completed a regulatory filing for its in-car voice assistant system in Shanghai, a move that analysts said reflects its broader push to deepen localization and elevate intelligent user experience in the Chinese market, one of its most important and competitive arenas.

According to information released by Shanghai’s cyberspace regulator, Tesla’s in-car voice model service completed filing on Monday, among a total of 158 AI-powered functionalities and applications that had been registered in the city as of Tuesday.

Tesla’s in-car voice assistant service is expected to connect to ByteDance’s Doubao large language model, chinastarmarket.cn, a Chinese financial news outlet under the Shanghai United Media Group, reported on Wednesday, citing people familiar with the matter. 

The Global Times reached out to Tesla China and ByteDance on Wednesday but had not received responses as of press time.

Earlier disclosures on Tesla China’s official website, including its updated vehicle voice assistant terms of use, show that certain models will be equipped with both Doubao and DeepSeek models, accessed via Volcano Engine through encrypted API interfaces.

According to the terms, Doubao is primarily responsible for voice command functions such as navigation setup, media playback and climate control, and can also support queries related to the vehicle manual. DeepSeek, meanwhile, enables broader AI-driven conversational interactions to enhance the human-machine experience.

A previous report by Bloomberg said the move “aims to catch local rivals who offer similar features.”

The development comes as Tesla works to defend its share in China, the world’s largest auto market, amid intensifying competition from domestic EV makers rapidly rolling out AI-driven features to lure increasingly tech-savvy consumers.

Liu Dingding, a veteran tech industry observer, told the Global Times on Wednesday that if multinational companies adopt local AI models in China, it would reflect a pragmatic approach shaped by both market demand and regulatory considerations. 

“Working with leading local AI models could significantly improve the intelligence and responsiveness of in-car systems, enhancing user experience and engagement. At the same time, such an approach would better align with China’s regulatory requirements, potentially forming a practical model that balances market efficiency, compliance and user value. It could also offer a replicable reference for future cross-border collaboration,” Liu said.

The reported move has also sparked discussion among Chinese netizens, with some saying it could help Tesla “close gaps in its smart features” and further advance its localization efforts, while improving convenience for users.

Tesla’s recent performance in China has remained resilient despite intensifying competition. Reuters reported that the company’s China-made vehicle sales rose 23.5 percent year-on-year in the first quarter, marking a second consecutive quarter of growth.

Sales of Model 3 and Model Y cars made in Tesla's Shanghai factory, including exports to Europe and other markets, rose 8.7 percent from a year earlier, data from the China Passenger Car Association showed.

The trend is also evident in rising partnerships between global automakers and Chinese tech firms, as demand for tech-rich driving experiences drives foreign carmakers toward localized, AI-enabled features.

In March 2025, BMW deepened its cooperation with Alibaba Group to integrate the Qwen large language model into its next-generation vehicles to be produced in China from 2026, according to a company statement.

Liu said that these companies’ expanding cooperation in China highlights how real-world business decisions tend to follow market logic, despite efforts by some countries to impose restrictions on technology cooperation.

“Global supply chains remain deeply connected with China’s manufacturing and innovation ecosystem. Companies such as Tesla and Apple continue to maintain extensive cooperation with China, which shows that engaging with the Chinese market is a mutually beneficial choice.”

Beyond AI model integration, cooperation between global automakers and Chinese tech firms is also extending into autonomous driving. Mercedes-Benz said it will integrate a driving assistance system co-developed with Chinese firm Momenta into multiple models, including the S-Class, according to Reuters.

“As the auto industry shifts toward greater intelligence, more international automakers are adopting Chinese technologies, reflecting the strength of China’s innovation ecosystem and its deep integration into global industrial chains,” Liu said, adding that such collaboration is set to become more mainstream, helping global brands adapt to the Chinese market and expand globally.