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BEIJING (AP) — Global automakers and EV startups unveiled new models and concept cars Thursday at China’s largest auto show, with a focus on transforming the country into a major market and production base for digitally connected new energy vehicles.
Toyota and Nissan both announced collaborations with major Chinese technology companies to meet customer demand for AI-powered online connectivity in cars, from social media apps to autonomous driving features.
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Electric vehicles accounted for about a quarter of all car sales in China last year. Hybrid vehicles, which have followed electric vehicles, are expected to be a growing segment in the future.
China’s largest electric vehicle maker, BYD, unveiled two “dual-mode” plug-in cars that can run either exclusively on electricity or as hybrid vehicles. The other is a hybrid off-road SUV from the luxury brand Yangwang, priced at over 1 million yuan (US$140,000).
“China’s electric cars, represented by (BYD’s) Qin and Han series, have successfully implemented the large-scale replacement of traditional fuel cars, and this trend is irreversible,” said Lu Tian, sales manager for BYD’s Dynasty models. The cars are named after former imperial families.
An executive from Chery, a more traditional Chinese manufacturer, offered a more measured perspective. Li Xueyong, deputy general manager, said they envision a future with 40% fuel vehicles, 30% hybrid vehicles and 30% electric vehicles. The company plans to develop both fuel-powered and new energy cars.
BYD is rapidly expanding into foreign markets, launching its budget Dolphin Mini, sold in China as Seagull, in Latin American markets this year.
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It is building a factory in Brazil on the site of a former Ford plant that closed when the U.S. manufacturer left the country. Two other Chinese automakers, including Chery, already have factories in Brazil.
BYD accounted for 41% of electric vehicle sales in Brazil in the first three months of this year, although the total is still relatively low.
In Mexico, the market share of Chinese vehicles rose from about 2.6% in 2021 to 19.2% in the first quarter of this year. Most of these were petrol-powered vehicles, as there are few charging stations and the cost of electricity makes them expensive to use at home.
Chinese manufacturers are also on the rise in Europe, raising concerns in some countries that they pose a potential threat to European automakers and jobs. The EU is considering whether to impose tariffs on electric vehicles made in China as government subsidies have spurred the industry’s growth.
The proliferation of electric vehicle manufacturers, encouraged by tax breaks and green energy subsidies, has led to a fierce price war that is expected to lead to a shakeout and consolidation of the industry in the coming years.
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For foreign players alongside American electric vehicle maker Tesla, this means they must accelerate the development of new electric car models to remain competitive in the world’s largest auto market.
“In no other region in the world is the change in the automotive industry taking place as rapidly as in China,” said Volkswagen boss Oliver Blume on Wednesday at a preview event for the appearance at the automobile trade fair.
“This market has become something of a fitness center for us,” he said. “We have to work harder and faster to stay.”
Other automakers expressed similar views. Japanese manufacturer Nissan sent many top executives to the Beijing auto show to feel first-hand the pace of change in China, said company President Makoto Uchida.
Nissan was set to sign a memorandum or agreement with Baidu, a Chinese search engine and AI company, later on Thursday. Uchida said Nissan must meet the needs of Chinese customers and the speed at which the market is changing.
“If we cannot meet these two aspects, it will be very difficult to sustain our business in China,” he said.
Toyota announced a collaboration with Tencent, maker of the widely used messaging and e-payment app WeChat.
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Volvo, the Swedish brand bought by China’s Geely Group, emphasized a simpler approach to digitizing its cars.
Likely aimed at a slightly older audience, the company said its new EX30 electric SUV features an easy-to-use audio system and tablet screen and uses sustainable fabrics in the interior.
“We believe technology should be measured by its usefulness and not just its novelty,” said Xiaolin Yuan, head of Asia Pacific at Volvo.
The EX30 will be sold in China for 210,000 to 260,000 yuan ($29,000 to $36,000), the company said.
American brands at the show included Lincoln, Cadillac, Buick and Chevrolet. Ford showcased a muscular look tied to its history, telling the story of the Mustang and the Bronco – which the company called a “sport utility vehicle” when it was introduced in 1966 – and showing off the latest versions of those models.
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Associated Press researcher Yu Bing in Beijing and writers Mark Stevenson in Mexico City and Gabriela Sa Pessoa in Sao Paulo, Brazil, contributed.
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