Chinese electric vehicle manufacturer Nio Inc. (NYSE: NIO) is gearing up to unveil its groundbreaking Banyan 3.1.0 driver assist system in January 2025. This new system promises to deliver cutting-edge smart driving capabilities powered by advanced end-to-end artificial intelligence (AI) models, according to reports from local media.

As of now, Nio offers a lineup of eight electric models in China, including the ES8, ES7, ES6, EC7, EC6, ET7, ET5, and ET5 Touring, all built on the NT 2.0 technology platform with Banyan as their vehicle system. Notably, the upcoming ET9 model, showcased last December, will utilize the next-generation NT 3.0 technology, with deliveries expected to start in the first quarter of 2025.

Recently, Nio rolled out the Banyan 3.0.0 system, which focused on enhancing the smart cockpit, smart chassis, and integrating AI technologies. However, the road to developing an end-to-end large model for smart driving has been fraught with challenges for Nio, particularly when compared to competitors like Xpeng (NYSE: XPEV) and Li Auto (NASDAQ: LI), who have successfully launched similar systems.

Reports indicate that Nio's smart driving team has encountered issues during the evaluation of its end-to-end model and is currently racing against time to address these problems before the January launch. Despite these challenges, the brand's upcoming system may not initially include an autonomous vehicle feature that allows for seamless driving from one parking spot to another, a capability that is already offered by Li Auto.

Li Auto made headlines on December 1, announcing the release of its OTA update version 6.5, leveraging its end-to-end and visual language modeling (VLM) technologies to offer a one-click, point-to-point autonomous driving feature. Nio, on the other hand, faces a more complex development path due to its unique battery swapping model, which requires the integration of technology for both autonomous driving and vehicle battery swaps in urban settings.

While Nio has not been as vocal in marketing its advancements in smart driving technology compared to its competitors, industry insiders note that the performance gap may not be as significant as it appears. The current end-to-end solutions from various car manufacturers, including Huawei and Xpeng, often involve multiple small AI models for different functionalities – a step that Nio is addressing head-on.

In July, during its Tech Day event, Nio introduced the NWM (Nio World Model), a planning and control model with more parameters designed to bolster its smart driving capabilities. As automakers such as Tesla (NASDAQ: TSLA) make strides with their Full Self-Driving (FSD) technology, signaling a shift toward end-to-end large model solutions, Nio is determined to catch up.

The conventional approach to intelligent driving often involved multiple engineering teams for various aspects, such as perception, decision-making, and control. However, Nio's upcoming end-to-end system aims to streamline this process by using sensor data as direct input for the vehicle's control commands, facilitated by neural network models.

In a recent June report, local media outlet LatePost highlighted that Nio has restructured its smart driving research and development department to prioritize end-to-end technology, marking a pivotal change in its approach.

As we look ahead to 2025, all eyes will be on Nio to see if it can deliver on the promise of its innovative Banyan 3.1.0 system. Will this new technology redefine smart driving for electric vehicles? Stay tuned for updates!