THE BEIJING Auto Show 2024 highlighted China’s success in electric vehicle production and promotion, underscoring the state’s unwavering commitment to electrification and reduction of carbon emissions from vehicles. The show returned after a 4-year hiatus, caused partly by the pandemic and the fact that the show happens once every two years alternating with the Shanghai Auto Show.
There were 117 all-new models from exhibitors launched. Some 278 new energy vehicles were out on display. There are 129 Chinese EV brands but only about 20 have commercial volume.
Major global American, Japanese and European automakers showcased their latest EV offerings, but it was the Chinese brands, from Aito to Zeeker, and all the electric vehicle offerings that stole the show, leaving their internal combustion engine counterparts behind, demonstrating the Chinese market’s singular focus on this rapidly evolving sector.
Tesla was not present in the show, for a second time in a row. According to Tu Le, from Sino Auto Insights in an expert interview with over China News Agency (CNA) the reason for the Tesla’s absence is that it didn’t have a new car to launch, despite an announcement for a new and affordable EV. However, Tesla founder Elon Musk was in China during the weekend in a series of meetings with the Chinese government and some EV makers.
One of the topics of concern at the start of was the overcapacity of China’s EV market, which raised concerns about price cutting and a price was that hurt sales of Tesla and other imported EV brands. Sino AutoInsights’ founder Li also said that the domestic market was still large enough to grow. Speculations about reduced profitability amidst heightened competition were rife in the exhibit halls, but EV automakers seemed unfazed.
The supposed overcapacity also creates more opportunities for export, causing big EV automakers, including Tesla, to rethink its production capabilities and model line-ups.
According to a report by the Associated Press, as China seeks to export this excess capacity, scrutiny from foreign markets concerned about market disruption is increasing.
EV makers like XPeng are considering overseas investments to prepare for potential tariffs.
Polestar’s decision to shift production for certain vehicles to its U.S. plant illustrates the potential impact of geopolitical tensions on the industry.
On the showroom floor, products released have instead expressed innovation and affordability, benefitting the domestic market immensely, and opening the gates for more collaboration between leading foreign and local EV brands.
Based on reports, one of the most important launches was that of the Xiaomi SU7 described by Ken Moritsugu in his report for the Associated Press (AP) “one of the biggest mob scenes.” The RMB299K ($41,400) vehicle has over 75,000 orders. Xiaomi makes a line of trendy, affordable smart appliances and mobility solutions, and the SU7 is aimed at younger generations whose lives revolve around the mobile phone. Interestingly according to Xiaomi CEO Li Jun, more than 50 percent of the orders for the SU7 are Apple iPhone users.
In the past foreign automakers have long relied on collaborations with Chinese firms to enter the market.
Today, these partnerships are becoming increasingly critical for survival in the changing landscape. Mercedes-Benz has reaffirmed its commitment to ties with Chinese partners like BAIC. Additionally, cross-border partnerships such as Toyota-Tencent and Nissan-Baidu exemplify the growing importance of integrating artificial intelligence into automotive technology.
The battle for Chinese EV consumers is won through unique “tech luxury” features largely unseen in other markets. BYD’s expansion into premium segments with underscores this trend as it seeks to boost profitability in a market facing price pressure.
Geely owend Lynk & Co, launched their long-range plug-in-hybrid-electric-vehicle sedan 07 EM-P PHEV. It also showed its line of long-range plug-in-hybrids showcases. Geely acquired Volvo from Ford Motor Company on August 2, 2010 for $1.8 billion–the first time in history that a Chinese company bought a Western car brand.
The show saw Japanese automakers like Nissan and Mazda unveiling models tailored for the Chinese market, indicating a renewed effort to compete in this significant sector. Nio launched a new version of its ET7 sedan, while smartphone newcomer Xiaomi reported impressive pre-orders for its SU7, intensifying market competition.
Chinese automakers showcased advanced driver assistance systems designed to rival Tesla’s FSD, demonstrating a focus on cutting-edge technologies. BYD’s upcoming SUV launch featuring its own smart driving system and GAC’s collaboration with Huawei exemplify this trend. Battery innovations like CATL’s long-range LFP battery further solidify China’s technological leadership. — with reports of AP, China News Agency, Reuters
