Tesla’s third-straight absence from China’s largest 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.
More than 70 carmakers from 26 countries and regions are expected to gather at the Shanghai Auto Show from Wednesday 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 are expected to debut several new models, including two concept supercars, on Wednesday, according to teaser images revealed by the carmaker.
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Chinese auto giant Geely said it will unveil an electric pickup truck at the show. Companies like Leapmotor and Xiaomi will also showcase their latest EV models at the show, which takes place every other year.
Foreign carmakers – including Volkswagen, BMW, Nissan, Toyota, and General Motors – will also debut new models and showcase their EV line-ups, according to the companies.
China’s leading premium EV manufacturers are vying for attention, with Nio and Geely’s unit Zeekr hosting events ahead of the show on Tuesday. 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, sensor maker Hesai, autonomous driving firm Pony.ai and tech giant Huawei Technologies, will 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 per cent growth year on year and accounting for more than 60 per cent of the global total sales of 17 million units, according to research firm Rho Motion.
Home-grown brands accounted for 60 per cent of the passenger cars – both electric and petrol-powered – sold in China last year, up from around 50 per cent in 2023, data from the China Passenger Car Association (CPCA) showed.
Meanwhile, Tesla is struggling to stop a sales slide in China, the company’s second-largest market. The US carmaker sold 78,828 China-made EVs in March, down 11.5 per cent from a year earlier, data from CPCA showed. Its global deliveries slid 1.1 per cent in 2024, with exports from its Shanghai factory falling by 24 per cent as a result of the EU’s year-long subsidy investigation against China-made EVs.
Tesla announced on Tuesday 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 US 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.
Chinese regulator of technology firms, the Ministry of Industry and Information Technology and the country’s industry associations also cautioned companies to improve safety and take care not to overstate the role of assistance systems after a Xiaomi SU7 EV crashed and killed three people last month while its driver-assistance system was turned on.
“The Chinese EV market is diverse and dynamic, and every player needs to be forward-thinking and have long-term planning,” said Shanghai-based Nio’s Li. “Those who are ahead in technological innovation, new model design and aftermarket service will flourish.”
He added that Chinese consumers view vehicles as more than transport tools, which could make it difficult for foreign marques to cater to their demands.
“Chinese consumers ask for more entertainment and lifestyle in a vehicle, while Western people want a car to be a pure car in terms of driving experience and performance,” Li said at a media briefing on Tuesday. “We have been making investments in technologies and production to serve our customers. It is highly likely that our efforts will be paid off this year.”
More from South China Morning Post:
- China sets ‘critical’ rules to corral safe self-driving EVs after Xiaomi’s fatal crash
- Chinese EV maker Nio to join fray in right-hand-drive car markets
- Xpeng’s X9 electric van eyes Europe sales in July after outselling Toyota Alphard in China
- BYD, Geely and EV peers face tariff dilemma as Beijing delays go-global plans
- Chinese EV maker Xpeng to use own AI chip to power its self-driving cars this quarter
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