The Shanghai Auto Show is the largest in the world, featuring the latest electric vehicles. Foreign carmakers are eager to showcase their offerings and compete with dominant Chinese firms in the electric sector.
The shift away from petrol engines has led to major industry events like the Paris and Detroit expos reinventing themselves. In Shanghai, the focus is on cleaner engines and AI-operated systems that are already on display.
China’s government support for EV and hybrid development has positioned the country as a leader in the sector. In 2024, EVs made up 26% and hybrids 19% of total car sales in China.
Auto Shanghai, running until May 2, will see the launch of electric and high-tech models designed and built in record time. From luxury SUVs to sedans, several brands will participate, including state-owned giants, startups like Li Auto and Xpeng, tech companies like Huawei, and consumer brands like Xiaomi.
The Chinese market is the largest globally, attracting younger buyers open to innovation. However, competition is fierce, with some startups failing and established brands engaged in a price war.
To stay competitive, companies are looking to expand globally. Analysts believe that Chinese companies are consolidating to create new global leaders. Many companies are eyeing Southeast Asia, Europe, and Latin America for future growth.
Foreign carmakers, including German brands like Volkswagen, BMW, and Mercedes, are feeling the pressure in the Chinese market. Sales have declined as domestic brands have gained popularity. Volkswagen aims to bounce back with new vehicles and autonomous driving technology developed specifically for the Chinese market.
Despite challenges, foreign manufacturers still have a role to play in China’s market. German brands must showcase their innovation to retain their market share. With the uncertainty caused by potential tariff increases, it is crucial for foreign brands to maintain their presence in China.
While Tesla will not be present at Auto Shanghai, US brands like Cadillac, Buick, and Lincoln will showcase locally produced models at the event. The trade tensions between the US and China, along with evolving market dynamics, continue to shape the automotive industry in China.
