State Council Unveils Groundbreaking "AI+" Initiative, Ushering in an Explosive Era for AI-Powered Smart Cockpits in Automobiles

In August 2025, the State Council issued the Opinions on Deepening the Implementation of the "AI+" Initiative (State Document [2025] No. 11), explicitly positioning intelligent connected vehicles (ICVs) as the "new generation of smart terminals" and setting a target that by 2027, the deep integration and adoption rate of artificial intelligence in six key sectors, including ICVs, must exceed 70%.

This policy signal marks the elevation of smart cockpits from an "optional feature" for automakers to a "standard smart terminal" at the national strategic level. According to forecasts from the National Innovation Center for Intelligent and Connected Vehicles, by 2030, the incremental total output value of China's "vehicle-road-cloud integration" ICV industry will reach RMB 2.5825 trillion, with an average annual compound growth rate of 28.8%.

Policy Upgrade: Strategic Shift from "AI Empowerment" to "AI-Native"

Unlike previous subsidy policies, this "AI+" initiative is distinctly characterized by scenario-driven demand. Instead of merely calling for technological breakthroughs, the policy sets clear application targets, such as achieving an over-70% deep integration rate of AI with ICVs by 2027.

Behind this target lies the government's rethinking of the industrial transformation path. "Policies are shifting from traditional support methods like 'providing funds and land' to innovative models like 'providing scenarios and opportunities,'" said an expert close to the policy formulation process. By creating large-scale application scenarios, the entire industrial chain is stimulated to innovate and iterate.

This policy direction has already yielded results. The National Innovation Center for Intelligent and Connected Vehicles predicts that by 2030, over 60% of the incremental output value of China's "vehicle-road-cloud integration" ICV industry will come from AI-related services and application ecosystems.

Technological Restructuring: How Large Models Are Redefining Human-Vehicle Relationships

2025 has become a watershed year for smart cockpit technology, with the core breakthrough coming from the realization of large model localization deployment. The Qualcomm 8775 chip provides 48 TOPS of computing power, supporting the operation of large models with 4-8 billion parameters onboard, fundamentally expanding the capabilities of smart cockpits.

The new generation of smart cockpits exhibits three notable features:

1. Breakthroughs in Cognitive Intelligence: Solutions like SenseTime's emotionally intelligent cockpit use multimodal perception to understand the driver's emotional state and fatigue level, proactively providing corresponding services. "The system is no longer just executing commands but beginning to understand intent," said a technical lead.

2. Scenario-Based Service Capabilities: Huawei's HarmonyOS cockpit enables seamless connectivity between phones, car systems, and AR glasses, automatically recommending routes and services based on the user's schedule. "The cockpit is evolving from a collection of functions to an understanding of scenarios."

3. Continuous Evolution: Through OTA upgrades, smart cockpits can constantly acquire new capabilities. "Buying a car is no longer a one-time transaction but the start of an evolving interpersonal relationship," remarked an industry observer.

Industry Reshaping: Chinese Supply Chain's Opportunity for "Overtaking on a New Track"

Amid policy benefits, China's smart cockpit supply chain is undergoing a value reassessment. For instance, Desay SV leads the cockpit domain controller market with nearly a 20% share; Huayang Multimedia has entered Jaguar Land Rover's global supply chain with its AR-HUD technology; and SenseTime's automotive division has delivered over 3.6 million vehicles in collaboration with more than 30 automakers.

The advantages of Chinese companies in AI algorithms and application innovation are helping them gain a voice in the global market. This advantage stems from a deep understanding of local user needs. Chinese consumers show higher acceptance of intelligent functions and greater willingness to try new features, providing fertile ground for innovation. Data shows that in the first half of 2025, the installation rate of smart cockpit domain controllers reached 36.8%, a year-on-year increase of over 50%.

With the deepening implementation of the State Council's "AI+" initiative, smart cockpits are evolving from "mobile tools" to "smart terminals" and further into "AI-native entities." In this transformation, early adopters will gain a first-mover advantage. In March 2025, the "AI-Driven Future Cockpit" closed-door seminar and ecosystem matchmaking event, hosted by the New Energy Vehicle Industry Development Promotion Center of the China Association of Plant Engineering, will bring together domestic and international automakers, leading supply chain companies, and industry experts to focus on technology integration, standard setting, and ecosystem collaboration for in-depth discussion and matchmaking. This event is not only an extension of policy and industry trends but will also provide a key pivot for AI to reshape the automotive industry value chain. Welcome to learn more in advance!