BAIC Launches AI-Focused Subsidiary Amid Industry Shift
BEIJING — On February 11, BAIC BluePark officially launched BAIC Yuanjing Intelligent Technology, an AI-focused subsidiary with a registered capital of 5 million yuan. In an automotive AI sector where expenditures often exceed 100 million yuan monthly for research and development, this amount seems modest. However, BAIC Yuanjing is wholly controlled by BAIC BluePark, with Liu Guanqiao, head of marketing at BAIC New Energy, as its legal representative.
According to equity records on Tianyancha, BAIC Yuanjing’s sole shareholder is Beijing New Energy Automotive Co., Ltd., the core manufacturing entity behind BAIC BluePark. This indicates that the new venture was structured not as a financial play but rather as a strategic move to bolster BAIC’s presence in the AI sector. The company aims to focus on “artificial intelligence basic software development,” reflecting the automotive industry’s pivot toward AI-driven innovation.
The automotive landscape is rapidly evolving. Features such as Level 2 driver assistance systems are becoming standard, while smart cockpit technologies are entering various price segments. In this competitive environment, BAIC New Energy’s creation of a dedicated tech unit signals a serious commitment to AI advancement. Yet the financial performance of BAIC BluePark has been underwhelming, with reported net losses reaching 3.426 billion yuan for the first three quarters of 2025. As of market close on February 12, 2026, shares were valued at 8.08 yuan, a 3.81% decline over the past year.
Despite offering value compared to competitors such as BYD, Tesla, Li Auto, and NIO, BAIC BluePark struggles in areas such as user experience and technological differentiation in smart cockpit and driver assistance systems. Historically, the company relied heavily on third-party partnerships for automotive intelligence, outsourcing critical components while focusing on range and specifications during the early adoption phase of new energy vehicles.
That competitive landscape shifted significantly after 2025, as highlighted by Fu Bingfeng, executive vice president of the China Association of Automobile Manufacturers. At the 2025 China Automotive Software Conference, he emphasized the industry’s transition from “hardware-defined” to “software-defined” vehicles. Modern consumers demand cars that understand them, necessitating in-house development and deep integration rather than a mere assembly of hardware specifications.
BAIC Yuanjing aims to address these challenges by focusing on pragmatic AI solutions. With its registered capital, the company will not attempt to tackle the capital-intensive domains of autonomous driving or large-scale cockpit models. Instead, it will concentrate on optimizing voice interaction, tuning driver assistance systems for local conditions, and employing AI diagnostics to enhance maintenance processes. These initiatives promise tangible upgrades that consumers will appreciate.
The subsidiary also plans to enhance its Internet of Things (IoT) application services, aiming to connect BAIC’s vehicle models. Features like remote control, home connectivity, and real-time status updates are essential for competing with leading startups in the automotive sector. Furthermore, BAIC Yuanjing’s R&D efforts will focus on automotive parts such as smart sensors and in-vehicle controllers, promoting software-hardware synergy and reducing reliance on external suppliers.
This strategy allows BAIC BluePark to bridge the experience gap with industry leaders without incurring astronomical R&D costs. Its wholly-owned structure should streamline decision-making, minimizing internal friction common in joint ventures. However, challenges persist, particularly regarding talent acquisition. The Ministry of Human Resources and Social Security anticipates a talent shortfall of 4.5 million professionals in intelligent manufacturing by the end of 2025. Attracting skilled individuals proficient in both AI and automotive engineering poses a formidable challenge for BAIC BluePark.
Although BAIC Yuanjing reflects a grounded approach in AI development, it is not without competition. Other automakers, such as FAW with its Qiyi Technology and Geely with Qianli Technology, are also pursuing similar paths. BAIC’s strategy focuses on core competencies rather than speculative trends like flying cars or metaverse applications.
The effectiveness of BAIC Yuanjing’s strategy hinges on balancing the immediate pressures of profitability against the need for long-term investment in technological advancement. With its history of consecutive losses, whether BAIC BluePark can sustain its AI venture amid financial scrutiny remains a critical question. The automotive industry’s intelligence race is intensifying, and BAIC must deliver compelling innovations and competitive products to reclaim its foothold in a rapidly evolving market.
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