BEIJING — Global automakers and electric vehicle startups unveiled new models and concept cars at China’s largest auto show on Thursday, focusing on the country’s transformation into a major market and production base for connected new energy vehicles. digitally.
Toyota and Nissan announced partnerships with major Chinese technology companies as they strive to meet customer demand for AI-enabled online connectivity in cars, from social media apps to autonomous driving features.
Electric vehicles accounted for about a quarter of all car sales in China last year. Hybrids, which have lagged behind electric vehicles, are expected to be a growing segment in the future.
China’s largest electric vehicle maker, BYD, showed off two “dual-mode” plug-in cars that can run solely on electricity or as hybrids. The other is an off-road hybrid SUV from its Yangwang luxury brand in the range of over 1 million yuan ($140,000).
“China’s electric vehicles, represented by (BYD’s) Qin and Han series, have succeeded in replacing traditional fuel cars on a large scale, and this trend is irreversible,” said Lu Tian, head of sales at BYD Dynasty models. The cars are named after former imperial dynasties.
An executive at Chery, a more traditional Chinese manufacturer, offered a more moderate outlook. Li Xueyong, deputy general manager, said they envision a future with 40% fuel vehicles, 30% hybrids and 30% electric vehicles. The company plans to develop vehicles that run on fuel and new energy.
BYD has been expanding rapidly into overseas markets, launching its budget-friendly Dolphin Mini, sold as Seagull in China, in Latin American markets this year.
It is building a factory in Brazil on the site of a former Ford plant that closed when the American 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 overall figure remains relatively low.
In Mexico, Chinese vehicles went from around 2.6% of the market in 2021 to 19.2% in the first quarter of this year. Most of them were gasoline-powered vehicles, since there are few charging stations and the cost of electricity makes it expensive to do so at home.
Chinese manufacturers are also making inroads into Europe, raising concerns in some countries that they pose a potential threat to European automakers and jobs. The EU is weighing the possibility of imposing tariffs on electric vehicles made in China because of government subsidies that have fueled the industry’s growth.
The proliferation of electric vehicle manufacturers, encouraged by tax breaks and green energy subsidies, has sparked a fierce price war that is expected to lead to a shakeup and consolidation of the industry in the coming years.
For foreign players, apart from US electric vehicle maker Tesla, it has challenged them to accelerate the development of new electric car models to remain competitive in the world’s largest car market.
“No other region in the world has such a rapid transformation of the automotive industry as in China,” Volkswagen CEO Oliver Blume said Wednesday at an event ahead of his appearance at the auto show.
“This market has become a kind of gym for us,” he said. “We have to work harder and faster to sustain ourselves.”
Other automakers expressed similar sentiments. Japan’s Nissan sent many top executives to the Beijing auto show to feel firsthand the pace of change in China, company president Makoto Uchida said.
Nissan was to sign a memorandum or understanding with Baidu, a Chinese search engine and artificial intelligence company, later on Thursday. Uchida said Nissan needs to meet the needs of Chinese customers and the speed at which the market is changing.
“If we can’t do these two aspects, it will be very difficult to maintain our business in China,” he said.
Toyota announced a partnership with Tencent, the maker of the widely used electronic payment and messaging app WeChat.
Volvo, the Swedish brand bought by the Chinese group Geely, highlighted a simpler approach to the digitalization of its cars.
Likely targeting a slightly older audience, the company said its new EX30 electric SUV has an audio system and tablet screen that are easy to operate and uses sustainable fabrics inside.
“We believe technology should be measured by its usefulness, not just its novelty,” said Xiaolin Yuan, Volvo’s Asia-Pacific director.
The EX30 will sell for between 210,000 and 260,000 yuan ($29,000 and $36,000) in China, the company announced.
American brands present at the show included Lincoln, Cadillac, Buick and Chevrolet. Ford presented a muscular look tied to its history, telling the story of the Mustang and Bronco – which it described as a “sport utility vehicle” when it was launched in 1966 – and showcasing 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 Sá Pessoa based in Sao Paulo, Brazil, contributed.