Tesla Partners with Alipay to Enhance In-Car Payment Features in China

Tesla has reached an agreement to incorporate Ant Group’s Alipay digital payment software into its vehicles in China, as the company intensifies efforts to provide localized smart features in a competitive market.

The deal, finalized on October 21, will enable Tesla to introduce an Alipay-powered smart parking service across its fleet in China, according to Ant Group.

Details regarding the launch date or specific car models receiving the feature have not been disclosed, although Alipay indicated that it would be available through an upcoming software update.

This feature will allow drivers to pay parking fees directly from their in-car touchscreens. Alipay also mentioned that additional functionalities for various in-car lifestyle scenarios are currently under development.

Ant Group is affiliated with Alibaba Group Holding, which owns the South China Morning Post.

This partnership represents Alipay’s latest initiative to strengthen its presence in the automotive sector. Launched in 2024, Alipay’s smart assistant connects its extensive service ecosystem with driving scenarios, enabling users to book tickets, order meals, and perform other tasks using voice commands.

Last year, the assistant was integrated into the software systems of domestic electric vehicle manufacturer Li Auto, covering its Mega, L-series, and i-series models. This integration allowed drivers to access Alipay mini-programs and payment functions for ordering coffee and tracking parcel deliveries, among other features.

The assistant has been implemented across 66 models from 16 automakers, including BYD, Xpeng, Nio, Geely, and Dongfeng Motor, reaching over 10 million vehicles, according to reports from Chinese media.

For Tesla, this collaboration comes amid an ongoing electric vehicle price war in China that has been impacting profit margins. In September, Tesla offered discounts on its Shanghai-manufactured vehicles for the first time since late 2024 to address sluggish domestic demand.

In the first seven months of this year, Tesla’s Shanghai Gigafactory, its largest production hub globally, delivered 266,204 vehicles to mainland Chinese buyers, reflecting a 12.4 percent decline year on year, according to data from the China Passenger Car Association.

Tesla has also encountered delays in obtaining full regulatory approval for its Full Self-Driving (FSD) driver-assistance system in China. Although a supervised version of FSD was launched in May for eligible test vehicles, the company continues to navigate strict data localization and driver monitoring requirements to achieve a nationwide rollout.

Source: SCMP Tech (Asia)