Chinese automakers are accelerating efforts to reduce their reliance on Nvidia chips by developing and integrating their own in-house semiconductor technologies. Leading electric vehicle manufacturers Xpeng and Nio, previously dependent on Nvidia for AI chips, have introduced new models equipped with proprietary chips. Xpeng's latest P7 model features three Turing AI smart driving chips developed internally, while Nio uses its Shenji NX9031 chip in its recent vehicles. This shift reflects a broader trend in China’s automotive industry, supported by domestic chipmaker SMIC, which has increased its revenue from automotive and industrial chips to 10% in 2025, up from less than 3% in 2020. Xpeng has begun pre-sales of the new P7 model, with an official launch planned later in August 2025.