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Autonomous driving is upon us: Tesla leads, China is close behind - the end of the European automotive industry?

China's BYD is introducing autonomous driving into a car that costs less than 10,000 euros.

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Photo: BYD

When it comes to autonomous driving, Tesla is still on top. Their FSD (Full Self-Driving) system is constantly improving, offering capabilities that were science fiction a decade ago. But now China is coming – fast, aggressively, and with something that could completely reshape the automotive market. Autonomous driving is here!

Autonomous driving – a reality as early as 2025. Tesla will have self-driving cars in June 2025. BYD, the largest electric vehicle manufacturer in China, has unveiled its autonomous driving system God's eye and incorporated it into an extremely cheap model Seagullwhich costs only 9,100 eurosUntil now, advanced assistance systems were only available in more expensive cars, but now the rules of the game are changing.

How does the God's Eye system work?

BYD offers three versions of the God's Eye system:

  • God's Eye C – basic version, which includes three cameras behind the windshield, an additional 12 cameras around the vehicle and several radarsThis version will be part of the equipment in the Seagull and Seal models.
  • God's Eye B – more advanced version with Lidar, which will be available in Denza models and some BYDs.
  • God's Eye A – top version with three Lidars, which will be available in Yangwang brand luxury vehicles.

The system allows automatic braking, pedestrian detection, lane keeping assist and adaptive cruise controlThe Seagull won't drive itself completely, but it offers features that have until now been reserved for cars at least two or three times its price.

Autonomous driving: Seagull vs. Tesla Model 3 – who offers more for their money?

The Tesla Model 3 is undoubtedly a more advanced car, but the price difference is staggering.

Model Price (China) Autonomous driving
BYD Seagull 9.100 € God's Eye C (cameras + radars)
Tesla Model 3 31.000 € FSD (advanced AI)

Tesla still leads in technology and artificial intelligence, but BYD offers inappropriate more for a lower priceIf Chinese manufacturers improve their software in the future, they could quickly reduce Tesla's advantage.

European manufacturers – end of the game?

As Tesla and China battle for dominance in autonomous driving, European automakers are lagging behind. German brands, once industry leaders, are now only slowly introducing most of the advanced technologies into their models.

The main reason? Europe still relies too much on tradition and is too slow to embrace change.

While Volkswagen, Mercedes-Benz and BMW are still developing their autonomous driving systems and offering them as expensive add-ons, the Chinese are already selling cheap cars with almost the same functions.

If the trend continues, the European automotive industry could experience similar scenario as Nokia with phones – once dominant, then completely overtaken by more innovative and faster competitors.

Autonomous driving for all: BYD puts pressure on Tesla, Volkswagen in trouble?

The market is shaken: free self-driving technology could be a game-changer

Chinese automobile giant BYD has caused a real earthquake in the electric vehicle industry with its latest move. Their “God's Eye” autonomous driving system (God's Eye) will be built into most of their models – at no additional cost to customers.

If Tesla has been setting standards in the field of autonomous driving, BYD has set standards with its strategy. “smart driving for everyone” (smart driving for all) has shown that it can offer advanced technologies also in affordable modelsThis could have far-reaching consequences for the entire automotive industry, especially for European brands like Volkswagen.

The market is surprised – stocks are reacting

The news of BYD's move immediately affected the stock markets:

  • BYD shares they reached record value, before falling slightly and closing trading 0.7 % lower.
  • Tesla (TSLA) she fell for 6.3 %, which was fifth consecutive decline.
  • XPeng (XPEV), another Chinese electric vehicle manufacturer, lost 6,8 % values.
  • NO (NO) fell for 6,7 %.

Is this a sign that investors are panicking? According to analysts, BYD's decision could be groundbreaking, as it poses a major challenge to Tesla and traditional automotive giants.

What do analysts say?

Experts from leading investment houses estimate that BYD could completely transform the market with this:

  • Jefferies: “BYD has made a perfect 180-degree turn in autonomous driving. Their president Wang Chuanfu has clearly stated new company strategy, which in the coming years will be based on smart driving for everyone.”
  • UBS: "This could be a game that changes the rules – especially in affordable segmentIf BYD offers an advanced autonomous driving system L2+ ADAS without raising prices, this means a lot of pressure on competitors. Volkswagen could suffer the most damage.

The future: driverless vehicles, but without Europe?

Autonomous driving is becoming more accessible, but the key players are no longer just Tesla and traditional car brands. China is rapidly catching up, lowering costs and introducing technologies that will transform the industry.

BYD Seagull is warning signal for EuropeIf European manufacturers do not accelerate the development of autonomous technologies and offer more affordable prices, they will soon lose the competition.


So the question is simple: Will Europe remain part of the future of the automotive industry or will it become just a bystander in the game between China and Tesla?

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