Global carmakers flocked to Auto Shanghai 2023, also called the 20th Shanghai International Automobile Industry Exhibition, the first brick-and-mortar A-class auto show in the world this year, held from April 18 to 27. The show has attracted 1,000 overseas and Chinese companies. They showcased their products for the age of smart electrification and showed foreign auto executives what the Chinese auto market has become. According to Shanghai Customs, 123 batches of imported exhibits amounting to USD25 million were declared at the Shanghai auto show this year, up 34% and 19% from the last edition held in 2021. More than 100 new cars made their global debuts and more than 1,500 vehicles were put on display in the 360,000-square-meter exhibition hall, offering another sign of the strong rebound and vitality of China's auto market.
Tesla's Chinese rivals Nio, Xpeng and Li Auto, stole the limelight on the first day of the Shanghai Auto Show, drawing the biggest crowds as the U.S. carmaker was absent. Tesla would not comment on why it was not taking part in the show. Guangzhou-based Xpeng’s launched the G6, a midsize sport-utility vehicle (SUV), which President Brian Gu said was competitive in design, pricing and performance. The G6 will take on Tesla’s Model Y, which starts from CNY261,900 and has a driving range of 545 kilometers. The G6 can go as far as 610 km on a single charge, and is fitted with the carmaker’s proprietary autonomous driving software X NGP, which is similar to Tesla’s FSD, or full self-driving software, which has not been approved for use in China. Xpeng said its NGP can be about 90% as efficient as a human driver, and an updated system featuring “from start to park” all-scenario autonomous driving will be rolled out in 2024. William Li, Co-founder and CEO of Nio, said he does not view the company as a direct rival to Tesla because Nio’s cars are priced higher than Tesla’s, indicating that they are superior to the Model 3 and Model Y in terms of design, technology and performance. A Li Auto Sales Manager said the carmaker had received a large number of orders on the first day of the show. It is estimated that more than 1 million people will visit the 10-day event this year, nearly 20% more than the 810,000 visitors in 2021, according to the organizers.
BMW Group said it is showcasing its largest ever lineup of electrified models, bearing marques from the namesake BMW to Rolls-Royce. The i7 M70 L, BMW’s flagship electric model, made its global launch, while Rolls-Royce’s first electric model, the Spectre, is meeting customers in Asia for the first time. The car group said its EV sales in China totaled almost 20,000 units in the first quarter, more than tripling the figure in the same period of 2022. Oliver Zipse, Chairman of the Board of Management of BMW, said that the BMW Group is making a strong push in the digital and electric fields, and China will be the vanguard market for BMW's innovation and opening up the future. Last year, BMW sold 790,000 vehicles in China, accounting for over one-third of its global total. “We feel at home here in China. The growth and success of BMW in the country has created prosperity in both China and Germany. We will continue to expand our industry chain advantage in China,” Zipse said.
Mercedes-Benz has brought its Mercedes-Maybach EQS SUV, its first electric production model. Other highlights include the first electric G-Class concept, the EQG, and the China-made EQE SUV, which is the first locally produced electric SUV based on its dedicated EVA platform. Ola Kaellenius, Chairman of the Board of Mercedes-Benz Group, was one of the first global automotive executives to arrive in China. Jin Zhuanglong, Minister of Industry and Information Technology, told Kaellenius that China’s fast-evolving market is generating unprecedented opportunities for both Chinese and global carmakers.
Oliver Blume, Chairman of the Board of Volkswagen, is heading a delegation of over 100 members to the Shanghai auto show, including those from Porsche and Audi. Blume said his top concern was “the people”; to motivate its employees and listen to its customers; and to “get a feeling of how the country has changed and what the expectations of Chinese customers are”. Dirk Hilgenberg, CEO of Cariad, Volkswagen’s software arm, signed a joint venture contract with ThunderSoft, an intelligent operating system provider. “A seamless, integrated and personalized user experience is becoming a key differentiator for software-defined vehicles,” said Hilgenberg. “Through the strategic partnership with ThunderSoft, Cariad is committed to providing scalable, innovative solutions for infotainment and connectivity in China at a faster speed,” he said. The Volkswagen Group announced plans to invest €10 billion to set up a new company in Hefei, Anhui province to speed up research and development (R&D) and innovation on intelligent and connected electric vehicles. The new company, with the project name 100%TechCo, will cut development times for new products and technologies by about 30%, Ralf Brandstätter, Chairman and CEO of Volkswagen Group China, told the Global Times.
Toyota’s Executive Vice-President Hiroki Nakajima emphasized the Japanese carmaker’s commitment to China, especially in the new energy vehicle segment. Toyota is showcasing four electric models at the Shanghai auto show. It will launch at least 10 by 2026 to hit its global EV sales goal of 1.5 million units, with China as one of the leading markets. French car brand Peugeot launched its first global model 408 X, while its electric concept – the Inception – made its Asian debut on the first day of the event. “China will continue to be both the world’s largest car producer and the world’s largest car market,” Peugeot CEO Linda Jackson said. German auto parts supplier Brose expects China to account for 25% of its global revenue by 2025, up from 20% now, CEO Ulrich Schrickel said.
Statistics from the CPCA show that 6.08 million vehicles were sold in the first quarter of 2023 in China, down 6.7% year-on-year. However, sales in March saw an upward trend, with 2.5 million units sold, up 9.7% year-on-year. New energy vehicles have been a driving force. In March, NEV sales hit 653,000 units, up 34.8% year-on-year. The CPCA estimates that China’s NEV sales will reach 9 million units this year, up from 6.9 million in 2022.
BMW Mini apologized for an incident at its booth at the Show after staff refused to give free ice cream to a Chinese visitor saying that it had run out, while a foreigner was offered ice cream a few moments later, as shown in a video that went viral on social media. The person who made the recording questioned in the video if Mini’s staff was treating foreign visitors and Chinese people differently. BMW said: “We sincerely apologize for our problematic internal management and staff members’ dereliction of duty, which have caused unpleasant feelings”. “China is one of BMW’s most important markets. This incident could erode consumers’ affection toward BMW and might further lead to investors’ decisions to sell BMW stakes,” Yang Delong, Chief Economist with First Seafront Fund, said.
This overview is based on reports by the China Daily, Global Times and South China Morning Post.
