SHANGHAI: The world’s largest auto expo opened its doors Wednesday in Shanghai, showcasing the new electric world order even as mounting trade barriers risk dampening China’s global ambitions. With nearly 1,000 exhibitors present, foreign carmakers are raring to show they can keep pace with the ultra-competitive Chinese firms that dominate the sector’s electric frontier.

Beijing’s historic backing of EV and hybrid development has seen the domestic market flourish, with firms on Wednesday taking the opportunity to demonstrate cutting edge technology and sophisticated design. “(Chinese brands) are really on the forefront of pushing the technology now, and have been for a few years,” said Stefan Rosen, the head of design for Lynk & Co, a joint venture between China’s Geely and Volvo.

“So, of course, I know that (foreign firms) are trying to catch up... but I would say still the industry is led through China right now,” he told AFP. Huge crowds gathered at domestic champion BYD’s booth as it unveiled five new Ocean series cars, as well as a luxury SUV under its sub-brand Yangwang, and a concept sports car under another, Denza. BYD has enjoyed a giddy few months of surging sales after annual revenue surged in 2024, eclipsing its rival, US titan Tesla—which is not present at the show.

Others exhibiting range from state-owned behemoths, startups such as Nio and Xpeng, tech giants with skin in the game such as Huawei, and consumer electronics-turned-car company Xiaomi. The domestic contest has pushed Chinese companies to develop faster and fostered technological innovation. Xpeng unveiled AI battery technology it said would deliver a 420-kilometre (260-mile) range in just 10 minutes, the latest in a slew of recent fast charging announcements from BYD and battery giant CATL. However, the effect of the crowded market on individual companies can be harsh—some startups have already gone bust, while brands including SAIC Motor, BYD and Geely are engaged in a brutal price war.

“Not every player here will ultimately survive because the criteria to succeed is much higher than before,” Xpeng’s president Brian Gu told AFP on Wednesday.

Vying to shore up sliding sales in a market they used to dominate, German companies on Wednesday pitched themselves as building cars “in China for China”. Volkswagen, the largest foreign group operating in the country, unveiled a series of new electric vehicles and a driver assistance system developed especially for the Chinese digital ecosystem. The group says it will launch more than 20 electric and hybrid models for the country by 2027.

At the BMW booth, a foreign executive conducted a conversation in Mandarin with an AI assistant, before CEO Oliver Zipse rolled onstage in a futuristic white SUV from the upcoming “Neue Klasse” series. A separate version specifically tailored for China will be launched next year.

“At BMW we will continue to advocate for... open markets,” Zipse said, adding that “global challenges require global cooperation” in an apparent reference to the current trade turmoil set in motion by the administration of US President Donald Trump.

Exports to Russia and the Middle East have helped cushion these and other tariff impacts, consultancy AlixPartners said Tuesday. And although the levies will increase the cost of China’s vehicle component exports by about 24 percent, “this represents only about 3.8 percent of China’s total auto industry production value”, it noted. – AFP