Shanghai Auto Show: the future is all electric, self-steering and intelligent in the world’s largest EV market

Carmakers plan to unveil more than 100 new models, 70 of which will be electric, according to the Shanghai Auto Show’s organisers
More than 1 million visitors are expected to visit the 10-day event starting on Tuesday, 20 per cent more than the previous version held in 2021 under the shadow of Covid-19

Electric & new energy vehicles

Daniel Renin Shanghai,Lilian ZhangandAnn Caoin Shanghai

Published: 5:30pm, 17 Apr 2023

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Some 70 new electric vehicles (EVs) will debut at the Shanghai Auto Show, accelerating the electrification drive in the world’s largest car market and simultaneously piling the pressure on existing players as a simmering price war dents their profitability.

Overall, more than 100 new models will make their global premiere at China’s largest car show between April 18 and April 27, the first major auto exhibition in the country after three years of stringent Covid-19 pandemic curbs, according to the organisers.

“It is a battlefield for major carmakers to display their latest vehicles and technologies to lure budget-sensitive Chinese drivers,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “It will set the tone for the [carmakers’] prospects over the next one or two years as thousands of industry officials and consumers will visit the show and get a taste of the [latest] technological trends.”

The last show in 2021 was held under strict virus control measures when few key executives from major international carmakers and auto component manufacturers attended it due to China’s travel restrictions.

The Wuling Hongguang Mini EV is displayed at Shanghai Auto Show on April 20, 2021. The previous event was held under the shadow of the Covid-19 pandemic. Photo: Reuters

This year’s event coincides with a price war in the mainland’s automotive industry where dozens of carmakers have slashed their prices to woo customers who have been spooked by concerns about job prospects amid a bleak economic outlook.

It is estimated that more than 1 million people will visit the 10-day event this year, nearly 20 per cent more than the 810,000 visitors in 2021, according to the organisers. A total of 1,000 car assemblers and car-parts makers will display their products and technologies at the show this year.

“The changes [in the industry] have been faster than everyone had predicted,” said Brian Gu, the president of Chinese EV start-up Xpeng, at a media briefing on Sunday. “We want to show our customers and the industry what the future of the industry will really look like.”

Xpeng, one of the three Chinese EV makes believed to have the potential to compete against Tesla, will unveil the G6 midsize SUV on Tuesday, which Gu said was competitive in design, pricing and performance.

It will be yet another model to take on Tesla’s bestselling Shanghai-made Model Y following the Zeekr X, unveiled last week by Geely’s namesake premium EV brand.

Xpeng’s domestic rival Nio will launch an upgraded EC7, a luxury SUV priced at about 500,000 yuan (US$72,764), as the Shanghai-based carmaker attempts to strike a chord with wealthy Chinese motorists.

He Xiaopeng, the founder, chairman and CEO of Xpeng Motors, addresses a news conference ahead of the Shanghai Auto Show, in Shanghai, on Sunday. Photo: Reuters

Battery-powered vehicles are the lone bright spot in the mainland’s automotive industry since the outbreak of the coronavirus in late 2019, buoyed by government subsidies and new digital technologies that have attracted millions of young drivers.

This year’s show will highlight digitalisation, intelligence and electrification through the exhibitors’ innovative products, according to the organisers, which include the China Association of Automobile Manufacturers and the China Council for the Promotion of International Trade.

Baidu, China’s top search engine and artificial intelligence firm, plans to show its latest autonomous driving technologies developed on its open-source Apollo platform.

“In 2026, when intelligent cars become more prevalent, customers will be less likely to consider cars without intelligent driving capabilities,” said Li Zhenyu, Baidu’s vice-president and head of its intelligent driving business division, on Sunday. “Carmakers are supposed to plan ahead to face a new round of competition.”

Major conventional carmakers such as Volkswagen and General Motors will display their answer to Tesla’s Model 3 and Model Y in Shanghai to maintain their market share.

Volkswagen will premiere the ID.7 midsize EV at the Shanghai Auto Show. Photo: Reuters

VW will premiere the ID.7, a midsize EV, that can go as far as 620km on a single charge. GM will display a new version of the Hongguang mini EV that costs less than US$5,000 along with its Chinese joint venture partners SAIC Motor and Wuling Motors.

In China, Tesla slashed prices of the Model 3s and Model Ys twice between late October and early January, with the prices hitting their lowest levels since the US carmaker began operations at the end of 2019.

Xpeng, Aito, an electric-car brand backed by telecommunications equipment maker Huawei Technologies, and BYD followed suit.

“A successful show could effectively whet consumers’ buying appetite and put the negative price actions to an end,” said Gao Shen, an independent analyst in Shanghai. “Industry officials are keeping their fingers crossed that demand will come back after the event.”