Tesla’s third-straight absence from the Shanghai Auto Show has given its domestic competitors an opportunity to stand out, with emerging players and innovative technologies set to further intensify the already cutthroat competition in the world’s largest electric vehicle (EV) market. Tesla is not alone. Hyundai, Hozon, Jaguar Land Rover, Polestar and nearly a dozen other marques were absent from the world’s largest auto event, adding to evidence that cutthroat competition and rapid consumer movement toward electric vehicles (Evs) are edging more players out of the world’s largest car market. International marques including Hyundai and Lamborghini as well as Chinese EV start-ups Hozon Auto and Jiyue did not participate in the world’s largest auto event. Other carmakers active in the market that did not appear included Kia, Rolls-Royce, Lorinser, Dayun, Genesis, Rising, Durant Guild and Chevrolet. “The auto show is a barometer of the Chinese car market, used by some industry officials to gauge brand awareness and market trends,” said Gao Shen, an independent analyst in Shanghai. “Brands that miss out will be viewed as under-performers in this mammoth market.”
More than 70 carmakers from 26 countries and regions are gathering at the Shanghai Auto Show from April 23 to May 2, launching more than 100 new vehicle models during the two weeks, according to the Shanghai Council for the Promotion of International Trade. The world’s largest EV maker BYD along with its luxury brands Denza and Yangwang launched several new models, including two concept supercars. China's Geely unveiled an electric pickup truck at the show, while companies like Leapmotor and Xiaomi showcased their latest EV models. One million visitors are expected to visit the show.
Foreign carmakers – including Volkswagen, BMW, Nissan, Toyota, and General Motors – also debut new models and showcase their EV line-ups, according to the companies. Foreign brands accounted for only 40% of the overall Chinese car market in 2024, down from 50% a year earlier, according to the CPCA. Car output in China now accounts for more than 30% of the global total, while mainland buyers snap up more than three out of every five EVs sold worldwide. Home-grown EV makers hold 90% of the domestic market, but most of the players are struggling to survive the fierce competition. Among the 50 or so EV builders in China, only three have made a profit, while a brutal price war ensnares all other contenders. Only half of the nation’s production capacity for EVs, or 20 million units a year, was put to use in 2024, according to Goldman Sachs.
Although their market share in China may be shrinking, global auto giants like VW are resolute about building cars that cater to the demands of mainland consumers. “We have a strong plan in place,” Oliver Blume, global CEO of VW, said in a statement. “At the Shanghai Auto show, we are now shifting into ‘delivery mode’. With a new generation of intelligent, fully-connected vehicles, we are focusing entirely on the digital, smart world in which our Chinese customers live.”
China’s leading premium EV manufacturers are vying for attention, with Nio and Geely’s unit Zeekr hosting events ahead of the show. Nio’s CEO, William Li, announced plans to produce the company’s first right-hand-drive vehicles for markets like the UK and Southeast Asia. Major component and technology developers, such as battery giant Contemporary Amperex Technology (CATL), sensor maker Hesai, autonomous driving firm Pony.ai, and Huawei Technologies, have their own booths at the show, highlighting the competitive push for advanced technologies in the sector.
Chinese carmakers’ relentless push in battery technology, autonomous driving and smart features has left foreign companies like Tesla and the traditional foreign auto giants in an uphill battle to reclaim their once-secure lead. More than 11 million pure-electric and plug-in hybrid EVs were sold in China last year, representing nearly 40% growth year-on-year and accounting for more than 60% of the global total sales of 17 million units, according to research firm Rho Motion.
Meanwhile, Tesla is struggling to stop a sales slide in China, the company’s second-largest market. The U.S. carmaker sold 78,828 China-made EVs in March, down 11.5% from a year earlier. Its global deliveries slid 1.1% in 2024, with exports from its Shanghai factory falling by 24% as a result of the EU’s year-long subsidy investigation against China-made EVs. Tesla announced that it would extend its zero-interest incentives for buyers and allow them to stretch their loan repayments on Model Y SUVs to five years, from the earlier three years. The U.S. carmaker’s roll-out of its Full Self-Driving (FSD) technology in China has hit a bump as Chinese regulators imposed stricter oversight for driver-assistance and autonomous-driving technologies. The company suspended a free FSD trial pending regulatory approval last month, as new policies enacted in late February required Tesla and other carmakers to submit detailed technical information before remotely releasing software updates.
At the Auto Shanghai 2025, major EU automakers voiced strong opposition to tariffs. Mercedes-Benz's Chief Executive Ola Källenius has warned that EU and U.S. tariffs have fueled the highest “complexity” in three decades. “I don't think I've experienced a higher level of complexity in my 32 years in the business,” he was quoted by the Financial Times as saying. Källenius also said the firm was urging the EU to find an “equitable solution” to create a level-playing field for China-made electric vehicles in Europe. “A conversation about a level playing field in an open market is always legitimate. But a pure tariff barrier is the crudest instrument you can apply,” Källenius was quoted by Reuters as saying. Audi Chief Executive Gernot Döllner also hit out at tariffs at the Auto Shanghai. “Tariffs are not the solution,” he said, according to the Financial Times. “They hinder innovation and they lead to false competition.”
Chinese car exports experienced a surge in the first quarter to 1.42 million vehicles, a 7.3% year-on-year increase, despite looming U.S. tariff threats, driven primarily by enhanced product competitiveness and a slight sales growth in Global South countries. Chery led with around 254,000 units exported, a marginal 0.1% increase, comprising 17.9% of total exports. BYD followed closely, exporting around 214,000 vehicles, an impressive surge of 120% year-on-year. Overall, traditional fuel vehicles saw a 3.7% decrease to 978,000 units, while exports of new energy vehicles surged by 43.9% to 441,000 units.
This overview is based on reports by the China Daily, the Global Times, and the South China Morning Post.
