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Mercedes-Benz’s 2025 AI Strategy: Partnering with ByteDance

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Mercedes-Benz and ByteDance's collaboration

Mercedes-Benz (China) Investment Co., Ltd. and Beijing ByteDance Network Technology Co., Ltd. recently announced the signing of an upgraded strategic cooperation memorandum. The two companies will jointly promote the cross-business integration of artificial intelligence technologies and set a new benchmark for digital innovation in the automotive industry. This strategic partnership covers various business areas, from intelligent assisted driving, intelligent cockpits, intelligent R&D, digital marketing, to customer operations, accelerating the deep integration and innovative application of AI technologies. Oliver Thöne, Member of the Board of Management of Mercedes-Benz Group AG and responsible for Greater China, and Zhang Lidong, Chairman of Beijing ByteDance, attended and witnessed the signing ceremony.

Oliver Thöne, Member of the Board of Management of Mercedes-Benz Group AG and responsible for Greater China, and Zhang Lidong, Chairman of Beijing ByteDance, witnessed the signing ceremony. Drummond Jacoby, Senior Executive Vice President of Mercedes-Benz (China) Investment Co., Ltd. and Head of R&D and Procurement at Mercedes-Benz China, and Tan Dai, President of Volcano Engine, also signed the contract.

This signing marks a strategic upgrade of the Mercedes-Benz and ByteDance partnership, following their partnership with Volcano Engine in 2023. The first Mercedes-Benz model equipped with the Doubao model—the all-new all-electric CLA—will launch this fall.

Doubao model

In the smart cockpit sector, leveraging the continuously upgraded Mercedes-Benz Smart Cockpit AI Platform and integrating ByteDance’s AI capabilities, Mercedes-Benz will enable the rapid development of intelligent applications and create a continuously evolving smart cockpit. Leveraging ByteDance’s advanced Doubao model, big data technology, and rich content ecosystem, the two parties will deepen their collaboration on large language models, multimodal models, and generative AI, integrating diverse scenarios such as entertainment, navigation, and lifestyle services to make the smart cockpit more personalized. In the future, Mercedes-Benz will further enhance the intelligent cabin experience by building a data-driven, full-link, closed-loop system through device-cloud integration and secure and stable cloud technology. Furthermore, Volcano Engine’s core “AI cloud-native” algorithm capabilities will provide powerful and differentiated technical support for Mercedes-Benz’s intelligent product development.

In the field of autonomous driving technology, building on Mercedes-Benz’s nearly 40 years of R&D and mass production experience, the two parties will collaborate in the cloud to strengthen the AI ​​DNA of intelligent assisted driving development. AI-powered algorithm improvements will help Mercedes-Benz more efficiently build, iterate, and deploy leading intelligent assisted driving capabilities.

To improve R&D efficiency, Volcano Engine will assist Mercedes-Benz in building its big data platform capabilities, integrating AI big models with data analysis capabilities to comprehensively enhance R&D efficiency. In the future, Mercedes-Benz China’s digital technology R&D team will leverage Feishu’s AI capabilities to strengthen digital collaboration within the R&D process and further enhance innovation efficiency.

Mercedes-Benz

In the field of digital marketing, Mercedes-Benz is collaborating with ByteDance to develop the latest channels for new media marketing. Leveraging Volcano Engine’s expertise in big data and AI big models, they are gaining in-depth user insights, continuously refining digital marketing models, tapping into marketing conversion resources, and building an integrated digital marketing matrix for brands and dealers, streamlining data management, and elevating ByteDance from a content partner to a partner focused on both content and marketing.

In customer operations, Mercedes-Benz leverages ByteDance’s advanced cloud communication technology to deliver precise and stable push notifications, verification codes, promotions, and other information, providing users with more targeted information and services.

The Mercedes-Benz and ByteDance collaboration began in 2023, with Volcano Car Entertainment being first integrated into the Mercedes-Benz Intelligent Cockpit system. In 2024, Mercedes-Benz and ByteDance’s Volcano Engine reached a strategic partnership to explore innovative applications of AI and big data in the smart cabin sector. In 2025, the all-new all-electric CLA, which will be launched in China, will be equipped with a Doubao model, helping the upgraded Mercedes-Benz virtual assistant become even smarter. Not only will it be more responsive, but it will also possess a rich knowledge base, precise semantic understanding, and the ability to recognize user emotions, providing more emotional value.

After 20 years of R&D in China, Mercedes-Benz has established the most comprehensive R&D network outside of Germany. Going forward, while continuously upgrading its in-house R&D capabilities and adhering to the “Mercedes-Benz Standard,” Mercedes-Benz will collaborate closely with leading technology companies such as ByteDance to bring more products and services that exceed expectations to Chinese customers, leading the technological innovation and transformation of the automotive industry.

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