China - More than 70 auto brands and over 100 models are set to debut at the show, following a tightening of regulations on self-driving technology.
Top Chinese brands such as BYD and Geely are expected to be the focus of the show, while foreign manufacturers such as Volkswagen, Nissan, Toyota and General Motors' Cadillac will also compete for attention at the event, which runs from April 23 to May 2.
China's years-long price war is set to continue, with next-generation autonomous driving features becoming a new front in the race for sales and profits.
However, plans to promote next-generation driver assistance systems in Shanghai have been hampered by the government's tightening control over the use of terms like "smart" and "autonomous" in marketing after a Xiaomi SU7 crash that killed three people in March.
Driver assistance systems have become an important tool for automakers to differentiate themselves in China's crowded electric vehicle market.
BYD, a leader in electric and hybrid vehicles, has created strong competition after announcing in February that it would offer its God's Eye driver assistance system as standard equipment across its entire lineup, including entry-level models that cost as little as $10,000.
BYD is pursuing the same strategy with driver assistance technology as it has with electric vehicles — using scale to drive down costs and put pressure on rivals, said Bo Yu, an analyst at research firm Jato Dynamics. Many automakers have "criticized BYD for its price war."
In February, Chinese regulators banned automakers from remotely upgrading driver assistance software without government approval.
That prompted Tesla to end a limited-time free trial of its FSD (Full Self-Driving) software in China, even though it is not fully autonomous. A few days later, the US automaker also dropped the FSD term, instead calling it "intelligent driving assistance".
Tech giant Huawei, which provides automotive software and has launched eight models in collaboration with Chinese automakers, launched a campaign urging caution when using its driving assistance systems.
At the Shanghai auto show, Geely's Zeekr brand plans to launch its first model equipped with Level 3 driver assistance technology, which can allow hands-free driving on highways and inner-city roads but still requires the driver to pay attention to the road.
In addition, Chinese regulators are also tightening standards for electric vehicle batteries, aiming to reduce the risk of fire and explosion.
Despite regulatory challenges, China’s new energy vehicle sector — which includes all-electric models and many hybrids — has continued its historic sales growth.
Electrified vehicles now account for more than half of all new vehicle sales in China, far more than in the United States, Europe and most other global markets. About a dozen new models launched in Shanghai this week are hybrids priced directly to compete with Tesla’s Model Y, potentially adding to the challenges facing the American automaker in China and globally.
Tesla has steadily lost market share in China, from a peak of 15% of the country’s battery electric vehicle market in 2020 to 9% in the first quarter of this year. Tesla’s annual sales also fell globally for the first time in 2024. The decline accelerated in Europe and the United States in the first quarter amid public backlash against CEO Elon Musk.
Tesla has skipped Chinese auto shows since 2021 following a protest by a disgruntled customer at the venue. The US electric vehicle pioneer rolls out new or redesigned models at a much slower pace than its Chinese competitors.
Several Model Y competitors debuting this week offer more advanced charging, driving assistance and in-car entertainment at lower prices, such as Xpeng's G6 and Zeekr's E6.
Some analysts predict Xiaomi will unveil the YU7, seen as the biggest potential threat to the Model Y. But it may stick to the current SU7 and SU7 Ultra models and has no plans to hold a press conference.
Independent auto analyst Lei Xing calls these and other Chinese EVs “Model Y killers.”
“This is a tsunami of pressure for Tesla's best-selling model," Lei said, adding that "It won't be just one car that beats the Model Y, but 12 or 13."
(via Reuters)