The Shanghai Auto Show, the biggest auto
show in the world, is taking place this week,
marking the first major event in four years for
the auto industry. The show is featuring more
than a dozen new electric SUVs, sedans, and
muscle cars, as automakers compete to roll out
faster, more luxurious, and more feature-
packed electric vehicles in China, the world's
biggest auto market.
China has invested billions of dollars in
subsidies to gain an early lead in an emerging
industry, making it a workshop for developing
electrics, self-driving cars, and other
technology. The ruling Communist Party's
support for EV development is part of its plans
to gain wealth and global influence by
transforming China into a creator of profitable
technologies. However, Beijing is now winding
down government support and shifting the
burden to automakers by requiring them to
earn credits for EV sales, forcing them to pour
billions of dollars into developing models that
can compete on price and features without
subsidies.
Last year, Chinese drivers bought 5.4 million
pure-electric vehicles, accounting for about
two-thirds of the global total of 8 million, and
1.5 million gasoline-electric hybrids. This year,
EV sales are expected to increase another
30%. The shift towards EVs has left foreign
brands struggling to compete, as consumers
have lost interest in gasoline cars. The biggest
challenge for foreign brands is to show their
best EV products.
The Shanghai Auto Show is featuring a variety
of models from established global brands, such
as Volkswagen, which plans to display 28
models, half of them electrified, and BYD Auto,
which competes with Tesla for the title of the
world's biggest-selling electric automaker. BYD
Auto is displaying for the first time its U9
supercar from its luxury Yangwang brand,
which can accelerate from zero to 100 kph (60
mph) in two neck-straining seconds and has a
1 million yuan ($145,000) sticker price.
China's auto sales peaked in 2017 at 24.7
million but dropped to 20.2 million in 2020
due to the COVID-19 pandemic. While the
industry is recovering, it has yet to return to
pre-pandemic levels.
The shift towards EVs is not the only
technology trend in China's auto market. China
is also a leader in the development of self-
driving taxis and trucks, with Baidu Inc. and
Pony.ai being the most prominent among
developers. Geely Group, owner of Volvo Cars,
Lotus, and Polestar, has announced plans for
satellite-linked autonomous vehicles, and
Huawei Technologies Ltd. is working on self-
driving mining and industrial vehicles.
At the Shanghai Auto Show, Chinese brand
Aito is displaying its new M5 SUV with
autonomous technology developed in an
alliance with Huawei. Huawei is expanding
into the auto and other industries after U.S.
sanctions imposed in a feud with Beijing over
technology crushed its smartphone business.
Even brands known for their roaring, gasoline-
powered engines are embracing electrics, such
as BMW AG, which is showcasing its entire
vehicle lineup as electrified. Italian luxury car
manufacturer Maserati, known for its high-
performance Ferrari engines, is unveiling its
first electric SUV and says its electric sports car
will get an Asia premiere.
The Shanghai Auto Show is a testament to
China's commitment to developing and
dominating the EV and autonomous vehicle
markets. While the shift towards EVs has left
foreign brands struggling to compete, it has
also spurred innovation and competition,
resulting in faster, more luxurious, and more
feature-packed electric vehicles.
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