BMW and Alibaba have announced their collaboration in developing artificial intelligence for cars in China. This decision comes as the Alibaba group seeks to focus more on monetizing its products and expanding its customer base. Alizila, the digital publication of the Alibaba group, reported on its website that as part of the partnership, the new BMW ‘Intelligent Personal Assistant’ (IPA) will integrate a customized AI system jointly developed by BMW and Alibaba, according to EuroNews.
– The AI mechanism will be based on Yan AI, a smart AI solution powered by Qwen developed by Banma, Alibaba’s intelligent cockpit solution provider. The AI-enhanced IPA will debut in BMW Neue Klasse models to be produced in China starting in 2026, setting new standards for intelligent and intuitive interaction between humans and vehicles – the website states.
This collaboration is expected to be a significant milestone in advancing AI-driven mobility in China. These AI features will focus on enhancing in-car mobility services, such as navigation and assistance features, as well as more natural voice interactions. It will also support Alibaba’s ambitions to drive change through AI technology, alongside BMW’s goal of integrating AI into its product range.
BMW’s Neue Klasse models will initially feature two AI agents, named Travel Companion and Car Genius. They can be used for various customized services and real-time assistance. This includes tasks such as planning a dinner outing, after which the AI system offers suggestions by combining restaurant ratings, real-time traffic data, and personal preferences.
– Our long-term partnership with the Alibaba group is an example of mutual growth achieved through co-creation. BMW will work more closely with Chinese technology partners on electric mobility and intelligent technologies to achieve our winning story – said Sean Green, President and CEO of BMW Group China.
– Our partnership marks a key step in implementing large language models powered by artificial intelligence at the forefront of advanced manufacturing, and Qwen’s integration into BMW’s in-car systems demonstrates how AI can revolutionize mobility. AI is a driving force for enhancing productivity across all industries. We look forward to closely collaborating with BMW in pioneering AI applications in the mobility sector that drive innovation and truly elevate the user experience – said Eddie Wu, CEO of Alibaba Group.
BMW Continues to Focus on Electric Vehicles
BMW has significantly focused on electric vehicles in recent years, aiming to establish a substantial share in the sales of fully electric vehicles by this year. It also aims to produce fully electric versions of key models. The launch of the Neue Klasse is expected to significantly assist the group in achieving its goal of increasing the share of deliveries exclusively powered by electricity to 50 percent from this year onward.
– Fully electric vehicles accounted for more than 17 percent of total sales last year. Including plug-in hybrids, nearly one in four vehicles sold was electrified – said Oliver Zipse, Chairman of the Board of BMW AG, at the annual 2025 conference in Munich, announcing that they are targeting further growth in e-mobility in 2025.
However, European electric vehicle manufacturers as a whole continue to struggle, with several automotive companies like Volkswagen and Volvo adjusting their targets for electric vehicles. This is primarily due to weaker-than-expected demand for electric vehicles, as well as an increased focus on hybrid technology. The rising competition from Chinese competitors such as BYD, SAIC, and Geely, along with reduced government subsidies for electric vehicles and plug-in hybrids from Germany, the UK, France, and other European countries, have also contributed to the uncertain outlook for the sector.
