China’s biggest auto show has returned after last year’s Covid-hiatus, with international carmakers showcasing their latest models and technology to counter the rise of domestic manufacturers like BYD Co., Nio Inc. and Xpeng Inc.
(Bloomberg) — China’s biggest auto show has returned after last year’s Covid-hiatus, with international carmakers showcasing their latest models and technology to counter the rise of domestic manufacturers like BYD Co., Nio Inc. and Xpeng Inc.
Volkswagen AG and Mercedes-Benz Group AG led the foreign charge — unveiling flagship electric vehicles before the show even officially kicked off Tuesday, while South Korea’s Hyundai Motor Co. said it will launch its new Elantra N and other cars in China soon. Not to be outdone, BYD launched an electric supercar and Li Auto Inc. outlined plans for an expanded lineup of 11 models by 2025.
Japanese carmakers Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. will also be keen to promote their electric models, having seen sales in China plateau in recent years. The latest iteration of Toyota’s bZ electric cars and Honda’s e:NS2 and e:NP2 will be front and center, according to Bloomberg Intelligence analyst Tatsuo Yoshida.
One notable absentee this year is Tesla Inc. The world’s biggest EV maker won’t be at the show, even though it is a major event in one of its key markets. The EV pioneer attracted unwanted publicity at the 2021 show when the owner of a Model 3 climbed on a display vehicle and shouted that her father almost died when driving her car because the brakes failed. The protest went viral in China and Tesla eventually made a public apology.
Key Developments
- China’s Rapid Shift to Electric Cars Has VW Trailing BYD, Geely
- Nio Plans Europe Expansion as China’s EV Price War Intensifies
- Japan Automakers Have Chance to Shine at Shanghai Auto Show
- Tesla Started a China Price War That May Destroy Some Carmakers
(All times Hong Kong)
Who Needs a TV When You Can Buy a Lincoln? (1:16 p.m.)
One of the more fun features of Ford Motor Co.’s updated Lincoln Nautilus SUV is a 24-inch panoramic display screen that stretches across the bottom of the windshield.
The screen can display information during a drive, as well as be used to help harried travelers relax when they take a break from the road, Kemal Curic, a Ford designer, said in a video presentation. He showed an example of the Nautilus’s interior lights dimming as images of a tropical aquarium filled the screen.
“Cars are no longer just for transportation,” he said. “They’re a mobile workplace, and a sanctuary where you can rejuvenate.”
Hyundai to Bring New Elantra to China (1:06 p.m.)
Hyundai Motor said it will introduce its new Elantra N sedan and Ioniq 5 N models in China in the second half of this year, as well as its compact Mufasa SUV, specifically designed for China, in the first half.
“The new Elantra N, one of the most beloved N brand models around the world, will be a game changer in the Chinese market,” Vice President and Head of N brand & Motorsports Till Wartenberg said in a statement.
Polestar Says Customers Are Cautious Nowadays (12:23 p.m.)
“Generally the whole world is in a situation where everyone is a little bit nervous and cautious, and that affects all carmakers, even the premium segment,” Polestar CEO Thomas Ingenlath said. “This is a very natural thing if you have inflation, war in Europe, you have banks collapsing. This is a scenario where I think the consumer is a little bit more careful about spending money.”
The company unveiled its Polestar 4 at the show — an electric SUV with no rear window.
Porsche’s Revamped Cayenne SUV (12:12 p.m.)
Porsche showcased a revamped Cayenne, starting at just under $100,000 and featuring more powerful engines, an updated chassis and new interior. Michael Schätzle, a product executive at the company, described it in a statement as “one of the most extensive product upgrades in the history of Porsche.”
Porsche’s deliveries slipped 2% in China last year amid Covid lockdowns and growing competition.
Nissan Showcases Futuristic EVs (11:20 a.m.)
Nissan unveiled two EV concept cars aimed at Chinese drivers — the Max-Out convertible sports car and the Arizon SUV. The Japanese carmaker also launched the e-Power X-Trail crossover, which starts pre-sales Tuesday.
The Arizon features a new virtual personal assistant named Eporo that’s capable of interacting with passengers in a human-like manner. It also has an interactive lighting system that can recognize people and automatically adapt the illumination to suit their preferences.
In February, Nissan increased its sales target for electric vehicles in Europe and Japan, but lowered the electrification target in China to 35% from 40% in fiscal 2026.
China “is one of the most technologically sophisticated markets in the world,” Chief Operating Officer Ashwani Gupta said Tuesday. “There is a need for increased electrification and advanced sustainability in the market, and we are working hard to meet it,” he said.
In an interview with Bloomberg Television, Gupta said Nissan would launch seven EVs by 2026 and that 80% of its lineup would be fully electrified by 2030. He also said talks with partner Renault SA were “very constructive” and that Nissan is committed to taking the alliance into “the next era.”
Xpeng Eyes International Expansion (11:15 a.m.)
While China’s EV upstarts have struggled to make much inroads into foreign markets, Xpeng President Brian Gu says the company’s goal is for international sales to eventually be a sizable contributer to earnings.
“We see great opportunity for the international market,” Gu said in an interview with Bloomberg Television from the auto show. “But we also realize it’s a long journey, it’s not going to immediately jump start large volume sales in many countries. It will take probably several years to build global brand and market presence.”
The company launched its G6 SUV earlier Tuesday, and Gu said he expects the car to be “another volume driver” for the company. “We feel like we’ll be on solid footing to regain sales momentum. With scale and with cost savings that gets us back on track toward profitability and break even in two years,” he added.
BYD Launches Supercar in Luxury Push (10:45 a.m.)
BYD unveiled an electric supercar under its new luxury vehicle brand Yangwang, pushing further into high-end models to build on its dominance in the mass-market segment.
The car, called the U9, was uncovered to gasps of delight from a packed crowd at one of the auto show’s most anticipated events. With sleek lines and a prominent rear diffuser and spoiler, the design is meant to enhance the car’s downforce and performance, BYD’s Chief Designer Wolfgang Egger said.
“It’s an artistic expression meant to interpret the energy and beauty that are only available in this exciting new era,” he said.
The company also announced more details about its U8 SUV, which can drive 1,000 kilometers (620 miles) on a single charge and costs 1.1 million yuan ($160,000). Pre-sales start Tuesday. BYD didn’t say how much the U9 will cost.
At the other end of the spectrum, BYD also presented a slew of new mass-market models including one of its smallest and cheapest consumer electric cars yet.
Starting from just 78,000 yuan, the Seagull hatchback offers either 305 kilometers or 405 kilometers of range using a lithium-ion blade battery.
The company also showed off its newest hybrid sedan, the Destroyer 07, and its all-electric sports utility vehicle.
Li Auto Extends Line Up (10:30 a.m.)
Beijing-based Li Auto plans to have a lineup of 11 models by 2025, including five high-voltage pure-electric cars, one flagship model, and five extended-range electric vehicle that come with a gasoline-engine to power the batteries. Currently, the company has four EREV models on the market.
The first electric model will be equipped with Contemporary Amperex Technology Co. Ltd.’s 4C Qilin batteries, which can power up a vehicle in 10 minutes to reach 400 kilometers of driving range. It’s also working on establishing charging stations, with a target to build 300 by the end of this year and 3,000 by 2025.
Nio Doubles Down on Europe (10 a.m.)
Nio plans to intensify its European expansion as the price war in its home market squeezes margins.
Nio will unveil a model next quarter that caters to European demand for compact cars and that will also be sold in China, Chief Executive Officer William Li said at a media briefing Monday ahead of the show.
Next year, the company will launch a fresh brand of vehicles for the European market that will be made at a new factory in China, Nio President Qin Lihong said at the briefing. The project is codenamed Firefly.
Toyota Unveils Two EVs for China (9:30 a.m.)
Toyota unveiled two new models in its battery electric bZ range aimed at the China market. A crossover produced with BYD and a sports utility vehicle made with joint venture partner Guangzhou Automobile Group will hit the market in 2024, Chief Technology Officer Hiroki Nakashima said at the show.
Newly-installed President Koji Sato also pledged in a video message to accelerate the development of electric cars tailored to the Chinese market. And the Japanese automaker will continue to promote research in hydrogen technology applications, looking to launch production of hydrogen-powered vehicles in China next year, Sato said.
Read more: Toyota’s Shift to Electric Future Rests on Koji Sato’s Shoulders
Ford to Import China-Made Lincoln SUVs (7 a.m.)
Ford Motor Co. plans to import its restyled Lincoln Nautilus SUVs from China, deepening connections with a country that other US companies are abandoning.
The SUVs, to be introduced in the US next year with a sleeker look and a new electric-gasoline hybrid powertrain, will be the first model Ford imports from China. Its plant in Hangzhou — a JV with China’s Changan Automobile — already makes Nautilus vehicles for the local market.
The move is expected to draw scrutiny as geopolitical tensions between China and the US escalate. Other American companies, such as Apple Inc. and auto suppliers, are looking to exit China. And politicians are already assailing Ford for a battery plant it’s building in Michigan, which will license technology from CATL.
VW Unveils Electric ID.7 Sedan (6 a.m.)
Volkswagen unveiled its first fully-electric sedan as the German carmaker struggles to move past software setbacks that have hurt sales in markets from Europe to China.
VW opened its first factory in China four decades ago, when local competition was pretty much non-existent. Today, China’s domestic automakers control half of the market, up from a quarter in 2008. VW’s sales have dropped by more than 10% this year alone after falling from 4.2 million vehicles in 2019 to 3.2 million last year.
The spacious ID.7, which starts at less than €60,000 ($66,000), marks a key effort to compete with Tesla’s Model 3 and a range of Chinese startups. At the launch Monday in Berlin and Shanghai, VW highlighted features from assisted parking to its 15-inch screen. It also offers a standard augmented reality display that beams information into the driver’s field of vision, voice-activated controls, and assisted parking and lane-changing. The model, VW’s first sedan based on its new MEB electric-vehicle platform, offers as much as 700 kilometers of range on a single charge.
Mercedes-Maybach Enters EV Era (6 a.m.)
Mercedes-Benz unveiled its Maybach EQS SUV, the ultra-luxury brand’s first battery model, picking Shanghai to impress deep-pocketed buyers in China that have pushed sales to a record.
The vehicle, able to drive 600 kilometers on a single charge, will be priced at roughly $200,000 — in line with other Maybach models. Features include massage chairs for both front and rear passengers and generous screens.
The model will support Mercedes’s push into making more vehicles at the top end of its luxury offering as the German automaker eyes solid results even in a downturn. Last year, Mercedes-Maybach sales jumped 37% to a record 22,600 vehicles. Demand in China was especially strong, with more than 1,100 cars leaving showrooms a month.
A presentation finished with Chairman Ola Källenius surrounded by four different electric SUVs on stage. From 2025, Mercedes plans to make all new models it rolls out electric-only, he said.
Executives highlighted an electric off-road vehicle that has different motors for each wheel for improved traction. And Kallenius praised the luxurious interior of the new Maybach SUV.
“It’s a personal cocoon on wheels,” he said. “Being chauffeured in this car is pure pleasure.”
–With assistance from Nicholas Takahashi, Supriya Singh, Dan Murtaugh, Martin Ritchie, Elisabeth Behrmann, Monica Raymunt, Linda Lew, Qingqi She, Danny Lee, Keith Naughton, Gabrielle Coppola and Ed Ludlow.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.