Major brands gather to display over 100 new vehicles
More than 70 automotive brands, including Chinese and international names, will present over 100 new or updated models at the Shanghai auto show this week. The Shanghai Auto Show underscores the intense competition in the world’s largest market for electric and hybrid vehicles.
Top Chinese players like BYD and Geely are expected to dominate the spotlight from 23 April to 2 May. However, foreign brands such as Volkswagen, Nissan, Toyota and Cadillac (by General Motors) are also set to compete for consumer attention.
As a prolonged price war continues in China, carmakers are shifting focus to automated-driving features. These technologies are becoming key to boosting vehicle sales and increasing profits in a crowded market.
Government crackdown alters marketing approach
However, plans to highlight advanced driver-assistance systems have changed due to a government clampdown. Regulators have restricted the use of terms like “smart” and “autonomous” following a fatal crash involving Xiaomi’s SU7 electric sedan in March.
The incident, which killed three people, occurred after the driver attempted to take over from the vehicle’s assisted-driving system. This has prompted automakers such as BYD and Zeekr to adjust their marketing. They now focus more on promoting safe driving and less on automated capabilities.
Despite the challenges, BYD is moving forward with its “God’s Eye” driver-assistance system, which will be included as standard on all models, even those priced around $10,000. This aggressive pricing mirrors the strategy BYD used to dominate the EV sector, forcing rivals to rethink their offerings.
Meanwhile, Chinese authorities have banned carmakers from updating driver-assistance software over the air without approval. As a result, Tesla ended a trial of its Full Self Driving (FSD) system in China and renamed it “intelligent assisted driving.”
Huawei, another key tech player in the auto sector, launched a campaign urging users to stay cautious with assisted-driving features. At a recent event, actress Liu Yifei reminded users to prioritise safety despite technological advancements.
Automakers pivot focus to hybrids and battery tech
Zeekr, Geely’s EV brand, originally planned to showcase its Level 3 driving system. This allows hands-free operation on highways and urban roads, but still requires driver oversight. However, its presentations will now highlight hybrid models and improved battery technologies.
Regulators are also tightening EV battery standards to prevent fires and explosions, adding another layer of complexity for automakers.
Tesla under mounting pressure in China
China’s new energy vehicle sector continues its rapid growth. Electrified models now account for over half of all new car sales in the country, reaching a milestone Beijing had originally targeted for 2030. This surge has created tough competition for Tesla, particularly from Chinese rivals.
At least a dozen electric crossover models set to debut at the show are positioned to rival Tesla’s Model Y. These newcomers offer advanced features like faster charging and better in-car entertainment, all at lower prices.
Tesla’s market share in China has dropped from 15% in 2020 to just 9% in early 2025. Global sales also fell last year, with further drops in Europe and the US. The decline has been linked to negative publicity surrounding CEO Elon Musk’s political associations.
Tesla has avoided Chinese auto shows since 2021 following a customer protest. Unlike Chinese brands, Tesla updates its product lineup at a slower pace.
Models like Xpeng’s G6 and Zeekr’s E6 are seen as direct Model Y competitors. Although Xiaomi was expected to launch its new YU7 crossover, it will instead showcase only its current SU7 and SU7 Ultra models without holding a press event.
Industry analyst Lei Xing described the wave of new crossovers as a “tsunami of pressure” on Tesla’s flagship. “It won’t be just one car that surpasses the Model Y – it’s a dozen or more,” he said.
with inputs from Reuters