Xinhua Headlines: China leads trends in global auto industry

SHANGHAI, April 27 (Xinhua) -- The 20th Shanghai International Automobile Industry Exhibition concluded Thursday at the National Exhibition and Convention Center (Shanghai), where about 1,000 global automobile companies battled to showcase their best products over the course of the 10 - daytime show.

The exhibition, also known as Auto Shanghai 2023, not only heralds technological trends in the global automotive market, but also demonstrates the strength and confidence of China's emerging automakers in the face of established global giants.

"With its high level of innovation, China is an important pacesetter for the entire automotive industry," Oliver Blume, chairman of Volkswagen AG, told Xinhua at the show.

The following highlights provide an insight into Auto Shanghai 2023 and China's leading role in the global automotive manufacturing industry.

HOMEGROWN BRANDS

At this year's event, the exhibition hall that gathered domestic new energy vehicle (NEV) brands such as NIO, Li Auto, XPeng and ZEEKR was full of practitioners, media representatives and spectators from home and abroad.

"In the past, the luxury car pavilion was the most popular place at the auto show. However, the most popular zone now is the exhibition area for Chinese car companies," said Zhou Minhao, director of the Council for the Promotion of International Trade Shanghai, one of the show's organizers.

Executives of established global auto giants such as Volkswagen, Mercedes-Benz, BMW and Toyota could be seen visiting Chinese brands' booths to learn about the rapid rise of China's NEV industry.

Blume said he respects all competition and is interested in how other companies think. "I will visit Chinese car brands such as BYD, NIO, XPeng and others (during the auto show). For me, it is always inspiring," he said.

In Zhou's eyes, this was rare in the past Auto Shanghai, reflecting the Chinese brands have taken a qualitative leap, especially in the field of new energy and intelligence with the cutting edge of technology.

Data from the China Association of Automobile Manufacturers show that in the first quarter of this year, domestic passenger car sales rose 5.3 percent year-on-year to a peak of 2.68 million units, accounting for 52.2 percent of total passenger car sales In China. The market share of local electric vehicle brands exceeded 80 percent last year.

ELECTRIFICATION

According to the China Association of Automobile Manufacturers, China's NEV sales nearly doubled to 6.89 million units last year, accounting for over a quarter of total car sales in the world's largest auto market.

Despite a decline in the overall Chinese car market in the first three months of this year, NEV sales totaled nearly 1.59 million units, up 26.2 percent from a year ago. The NEV's market share in China's car market peaked at 26 percent during the same period.

"The rate of growth here is much faster than in other regions of the world," Blume said.

Data show that China's leading NEV maker BYD overtook Volkswagen and Toyota to become the best-selling passenger car brand in the first quarter in China, with total sales of 440,798 vehicles.

New local electric vehicle manufacturer NIO debuted its advanced intelligent electric SUV ES6 and launched its updated flagship electric sedan ET7 during the show. The on-site demonstration of its third-generation battery exchange station at the booth impressed the crowds of visitors. NIO's first 10 third-generation battery exchange stations went into operation on April 13 in 10 Chinese cities, including Beijing, Shanghai and Shenzhen, with a total of 1,342 exchange stations built across the country.

INTELLIGENCE

"There are two revolutions happening in the automotive world. One is electrification and the other is autonomous driving and driver assistance. China is at the forefront of these two directions," said Francois Marion, senior vice president of group communications and investor relations for French car supplier Valeo .

A variety of domestic smart and digital technologies have been applied to car models at the auto show. On the eve of the show, Chinese tech giant Huawei unveiled its latest autonomous driving system, ADS 2.0, which has the ability to operate without relying on high-precision maps. The first model to use the system, the advanced intelligent driving version of the AITO M5 from Chinese EV brand AITO, was one of the star exhibits at the event.

IM Motors, an exclusive smart electric vehicle company jointly launched by leading Chinese automaker SAIC Motor, Zhangjiang High-tech Park in Shanghai's Pudong New Area and e-commerce giant Alibaba Group, announced its intelligent strategy at the show, which aims to create an intelligent traffic location experience through hardware and software architecture, large-scale intelligent algorithms and an intelligent stage experience.

Shi Shuai, a partner at global consulting firm Roland Berger, said domestic industry players are engaged in a new round of technology-driven innovation competition and ultimately work together with global giants to create a new technology landscape and future travel ecology. This can be seen in everything from integrated solutions for autonomous driving and a new generation of sensors, to electronic and electrical vehicle architecture and basic software platforms, Shi said.

GOING GLOBAL

Data shows that in 2022, China exported over 3.11 million vehicles, overtaking Germany to become the world's second largest auto exporter. The trend continued in the first quarter of this year, with China exporting more than 990,000 cars, up 70.6 percent year-on-year.

China's auto exports have increased by nearly 1 million units per year over the past two years, due to improved competitiveness in the country's supply chain, quality, technology and brands.

More Chinese automakers are no longer satisfied with their existing markets, including Southeast Asia and Latin America, and are now setting their sights on the European market. At Auto Shanghai 2023, emerging Chinese car brands such as ZEEKR, NETA and HiPhi announced their plans to go to Europe, which is dominated by established global car giants.

ZEEKR, an electric vehicle brand from Chinese auto giant Geely, said its first vehicle for Europe will debut in Sweden and the Netherlands this year. Spiros Fotinos, CEO of ZEEKR Europe, said the company will enter most of Western Europe by 2026 and aims to become a leading brand in the electric car market in Europe by 2030.

NETA has established a subsidiary in Europe and is preparing for its car models, including NETA S and NETA GT, to enter the European market. HiPhi, a luxury Chinese pure electric brand, said it will start in Munich and Oslo, with two models expected to go on sale in Europe in the third quarter of this year.

"I think there are opportunities even for Chinese brands to be successful not only in China but also worldwide in the future," Blume said. "Some Chinese car brands already have very competitive products with a high level of innovation, and now it is up to them to build a dealer network and make the products more international."

LOCALIZATION STRATEGY

The exhibition was the first A-class international car show to be held in China since the country adjusted its measures against covid-19. With an exhibition area of ​​more than 360,000 square meters, it displayed 1,413 cars, including 93 vehicles making their global debuts and 513 new energy vehicles. A total of 906,000 visitors from home and abroad took part in the event.

"More than 20,000 foreign exhibitors and visitors came to Auto Shanghai 2023, the highest ever," Zhou said. "While the show was still going on, more than 80 percent of the booths for the next show in two years had already been booked."

Most global automakers are moving full steam ahead with their localization strategies for the Chinese market.

Volkswagen brought 20 electric vehicles to the show, including the Volkswagen ID.7, which made its world debut at the event. By the end of 2030, the group will offer more than 30 all-electric models to customers in China. It will massively strengthen its local competence not only in e-mobility but also in the areas of digitization and autonomous driving, including software and R&D. Maserati launched three new vehicles at the show, including an electric sports car and an electric SUV.

"We propose the electric cars because China is at the forefront of technology, and the market is growing dramatically," said Mirko Bordiga, CEO of Maserati Greater China.


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