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Mercedes-Benz has signed a new agreement to strengthen its collaboration with ByteDance, the Chinese parent company behind TikTok. The German automaker aims to capitalize on the increasing consumer interest in smart vehicle technology.
The cooperation memorandum, signed on September 23 between Mercedes-Benz China Investment and ByteDance, encompasses various initiatives, including advanced assisted driving systems. Additionally, a new electric CLA model, featuring ByteDance’s artificial intelligence technology, is scheduled for release this fall.
Their partnership began earlier in 2023 when Mercedes-Benz started working with ByteDance’s Volcano Engine cloud services division. The vehicles were outfitted with an app that integrates ByteDance’s popular platforms, such as Xigua (a video-sharing app), Jinri Toutiao (a news aggregator), and Douyin (the Chinese version of TikTok).
Building on this foundation, the companies are set to expand their collaboration to include innovations in cockpit AI technology in 2024, according to Oliver Thöne, a member of Mercedes-Benz’s board overseeing China operations.
Looking ahead, the two companies plan to fully integrate their business efforts, addressing the rising demand for smart vehicles in China. The upcoming CLA model will feature ByteDance’s Doubao AI—a virtual assistant capable of dialect recognition and emotion detection. It will also boast an impressive driving range of 866 kilometers and be equipped with 11 airbags to focus on safety.
Data from the China Electric Vehicle 100 Forum indicates that about 90% of consumers are willing to pay a premium for advanced autonomous driving features, with around 30% ready to spend an extra 10,000 yuan (approximately USD 1,403).
This partnership also signifies a strategic move to localize further. Mercedes-Benz has developed a robust research and development network in China, which has become its largest R&D hub outside of Germany.
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