Best-selling Chinese brands such as Byd and Geely are expected to be center stage at the show from April 23 to May 2, while foreign automakers such as Volkswagen, Nissan, Toyota and General Motors’ Cadillac brands will also attract attention.
With the year-long consumer price war dragging in China, the next generation of autonomous driving features has become the next aspect of the battle between vehicle sales and profits.
But in March, after the fatal collapse of Xiaomi Su7 in March, the government’s touting plans for Shanghai’s next-generation driver assistance systems cracked down on Shanghai’s next-generation driver assistance systems.
Shortly after the driver tried to take over from the car’s assisted driving system, the Chinese electric sports sedan hit the cement pole and killed three people.
The launch of the SU7 was a sensation shortly after last year’s Beijing Auto Show, and more than 215,000 copies have been sold since, surpassing Tesla’s Model 3 at a monthly price since December. The resulting government scrutiny has caused Chinese automakers (such as Byd and Zeekr) to scramble to modify their marketing demonstrations, deviating from the exaggeration of autonomous driving capabilities and instead emphasize driver caution. Driver assistance systems have become a key tool for automakers to distinguish themselves in China’s crowded electric vehicle market.
Byd, the leading U.S. EV and hybrid manufacturer, announced in February that it would use free standard equipment as free standard equipment in its lineup, including the entry-level model for about $10,000.
Byd is following the same script with the same driver-assistance technology as EVS and using its huge scale to reduce costs and stress competitors.
Many automakers “criticize Byd for the pricing war,” she said. “Byd is taking a similar strategy to God’s eyes – making everyone else uncomfortable.”
Chinese regulators also banned automakers from installing wireless software updates on driver-assisted software in February without government approval.
This prompted Tesla to stop China’s limited-time free trial of its “fully autonomous driving” (FSD) software, although its name is not entirely autonomous. A few days later, it also removed the FSD from its name, calling it “smart assisted driving.”
Tech Giant Huawei provides automotive software and has partnered with Chinese automakers to launch eight models and launched an effort on Tuesday urging caution when using its assisted driving system.
“While this technology has helped us well, we should also be careful about driving safety,” the brand’s celebrity spokesperson said in a live broadcast event last week for Luxeed Brand, a Luxeed brand jointly developed by Huawei and Chery.
At the Shanghai Auto Show, Geely’s Zeekr EV brand plans to launch its first model equipped with so-called Level 3 driver-assistance technology, meaning it can drive on highways and city streets, but still requires drivers to watch the road.
But its press conference will focus on showing hybrid models and battery technology, Zeekr said.
Chinese regulators are also tightening standards for electric vehicle batteries, aiming to reduce the risk of fire and explosions.
For Tesla
Aside from regulatory challenges, China’s “new energy” sector – including all-electric models and a variety of gasoline-electric hybrids – continues its historic sales surge.
Now electrified vehicles account for more than half of all new car sales in China, much higher than the U.S., Europe and almost all other global markets, and marks the achievement of Beijing’s initially scheduled for 2030.
The approximately twelve new models debuting in Shanghai this week are electric crossovers, priced directly to compete with Tesla’s Model Y, which has the potential to increase the growing challenges for U.S. electric car manufacturers in China and around the world. Tesla did not respond to a request for comment.
Tesla’s market share in China has steadily declined, from 15% of the country’s battery-electric car market to 9% in the first quarter in 2020, with annual sales falling for the first time last year.
In the first quarter, the downward trend in Europe and the United States was due to CEO Elon Musk’s polarized politics as the top adviser to U.S. President Donald Trump.
Since 2021, Tesla has skipped China’s auto show after unsatisfied customers protested. The U.S. electric vehicle pioneer (EV Pioneer) has released new models or redesigned models at a much slower pace than its Chinese competitors.
The Y model competitor debuted this week, offering more advanced battery charging, assisted driving and in-car entertainment at a lower price, such as the Xpeng’s G6 and the Zeekr’s E6.
Some analysts expect Xiaomi to launch its highly anticipated Yu7 crossover, believing it is the biggest potential threat to the Y model, but it will only show its current SU7 and SU7 Ultra models at the exhibition, and there are no plans to hold a press conference. It gave no reason and did not respond to a request for comment.
Independent car analyst Lei Xing followed the rise of China’s auto industry for two decades, calling these and other powerful new China electric crossovers “model Y killers.”
He said Tesla’s best-selling model “is a tsunami of pressure.” “It’s not just a vehicle that beats the Y model – it’s 12 or 13.”
