SHANGHAI (AP) — Global and Chinese automakers plan to unveil more than a dozen new electric SUVs, sedans and muscle cars this week at the Shanghai Auto Show, their first large-scale sales event in four years in a market which has been converted into a workshop. for the development of electric vehicles, autonomous vehicles and other technologies.
Automakers are racing to launch faster, more luxurious and feature-packed electric vehicles in the technology’s biggest and most crowded market. The ruling Communist Party has invested billions of dollars in subsidies to gain an early lead in an emerging industry. Established global brands face intense competition from Chinese rivals.
For the first time since 2019, executives will travel from the United States, Europe and Japan to attend the world’s biggest auto show after anti-virus restrictions that blocked most travel to China were lifted in December. Auto shows at the industry’s largest market were held during the pandemic, but on a smaller scale. Global brands were represented by employees from their China operations.
Drivers in the world’s largest auto market bought 5.4 million pure electric vehicles last year, or about two-thirds of the global total of 8 million, plus 1.5 million gasoline-electric hybrids. That was more than a quarter of total car sales of 23.6 million. EV sales this year are forecast to rise another 30%.
“Consumers lost interest in gasoline cars. That is the biggest challenge for foreign brands to compete in China,” said industry analyst John Zeng of LMC Automotive. “They will have to show their best EV products.”
Beijing is reducing government support and shifting the burden to automakers by requiring them to get credits for electric vehicle sales. Manufacturers are pouring billions of dollars into developing models that can compete on price and features without subsidies. Many are forming partnerships to share the rising costs.
Auto Shanghai 2023 fills the cavernous Shanghai Expo Center, a subcontinent of 1.5 million square meters (16 million square feet) of a building that is among the largest in the world.
Volkswagen AG, the country’s best-selling brand, says it plans to display 28 models, half of them electric. VW says it will introduce its ID.7 limousine, which promises a range of 700 kilometers (435 miles) on a single charge.
China’s BYD Auto, which is competing with Tesla Inc. for the title of the world’s best-selling electric carmaker, says it will display its luxury brand Yangwang’s U9 supercar for the first time. The automaker says the U9, with a sticker price of 1 million yuan ($145,000), can accelerate from zero to 100 kph (60 mph) in a grueling two seconds.
Car sales in China peaked in 2017 at 24.7 million but collapsed in 2020 to 20.2 million after dealerships closed as part of efforts to contain COVID-19. They are recovering, but are not yet back to pre-pandemic level.
The ruling party’s support for the development of electric vehicles is part of plans to gain wealth and global influence by transforming China into a creator of profitable technologies.
That campaign has strained relations with Washington and other trading partners, which are cutting off access to advanced processor chips used by makers of smartphones, electric cars and other high-tech products. China’s own foundries can supply low-end chips used in many cars, but not processors for artificial intelligence and other advanced functions.
Sales of hybrid gasoline-electric vehicles and pure electric vehicles rose 26.2% from a year earlier in the first three months of 2023 to 1.6 million, according to the China Association of Automobile Manufacturers. Pure electric sales rose 14.4% to 1.2 million, while hybrids rose 75.1% to 433,000.
Tesla and some other brands cut prices by 5-15% starting in January after sales growth slowed, albeit at levels still strong compared to the weak US and European markets. That prompted warnings that pressure on an industry with dozens of fledgling brands could force smaller automakers to merge or go out of business.
China is also, along with the United States, a leader in the development of autonomous taxis and trucks.
Baidu Inc., better known as a search engine operator, is foremost among the developers that also include Pony.ai. Geely Group, owner of Volvo Cars, Lotus and Polestar, has announced plans for satellite-connected autonomous vehicles. Network equipment maker Huawei Technologies Ltd. is working on autonomous mining and industrial vehicles.
Baidu and Pony.ai received China’s first licenses to offer autonomous transportation services in Beijing with a security driver on board to take over in case of an emergency in 2022. That came 18 months after Alphabet Inc.’s Waymo. start driving without a driver. call service in Phoenix, Arizona.
“We see very strong support from the government,” said Jason Low of Canalys.
At the auto show, the Chinese brand Aito plans to showcase its new M5 SUV with autonomous technology developed in partnership with Huawei Technologies Ltd. The telecommunications equipment maker is expanding into the automotive and other industries following US sanctions. US in dispute with Beijing over technology. crushed Huawei’s smartphone business.
China’s market is so large that even brands whose strongest selling point is roaring gasoline engines are embracing electric ones.
BMW AG says that its entire lineup of vehicles at Auto Shanghai will be electrified. The German sports luxury brand says it will introduce two new models, the i7 M70L and the XM Red Label, and will show its M760Le in China for the first time.
Italy’s Maserati, a unit of Stellantis known for using high-performance Ferrari engines, plans to unveil its first electric SUV and says its electric sports car will have an Asian premiere.
Chinese luxury electric vehicle brand NIO Inc., which competes with Tesla at the high end of the market, plans to show off its latest SUV, the ES6. It promises a range of 610 kilometers (380 miles) on a single charge.
Mercedes Benz plans to introduce an electric SUV under its Maybach luxury brand and two SUVs. The company also has EV joint ventures with BYD Auto and Geely Group.
Toyota says it plans to introduce two new models in its bZ line of zero-emission vehicles. Nissan plans to display its Max-Out electric convertible concept car. Honda unveils a new concept car for its China-focused e:N electric brand.
Despite such investments, Western and Japanese brands need to be more aggressive in developing electric vehicles to keep up with China’s rapid evolution, said LMC’s Zeng. He said many take too long to create models abroad without China’s involvement.
“The model they bring to China lags behind Chinese models by three to four years in driving range and equipment,” Zeng said. “They have to learn how to design and test cars in China for China.”