Petrol was yesterday: At China’s most important car show, which begins in Shanghai on Wednesday, everything revolves around electrical innovations. Once again, you should add. Because China has been the leading market for e-mobility for years. More than 100 new models, most of them, are expected in Shanghai.
The Association of the Chinese auto industry is confident: In the current year, the 50 percent electrical share mark on the new car sales will be exceeded “easily”.
However, the competition is merciless. Especially the market entry Teslas in 2020 caused China’s car manufacturers to create innovations, bring products onto the market and to optimize the costs, says UBS analyst Paul Gong. An electric car in China now costs about half as much as in the western world.
The price war goes into the third year. Finally, almost all major manufacturers reduced their prices again or attracted with bonus programs. The result: shrinking margins, losses and overcapacity. Insolvians are piling up.
BYD and LI: Festival of the domestic brands
The clear winners were last Byd From Shenzhen. With affordable e-models, the company hits the taste of the masses. In the first quarter of 2025, BYD released almost 700,000 electric and plug-in vehicles in China. The market share is around 29 percent, more than the four next largest providers. BYD has not only overtaken Tesla, but also the traditional market leaders in combustion.
Li Auto is also growing strongly. The SUV specialist relies on so-called range extender hybrids in the premium segment, in which the electric motor drives the car while a combustion engine loads the battery. With the concept, the company was able to double its sales figures in 2024 and now writes black. Geely, which includes brands such as Zeekr and Lynk & Co, is also one of the promoters.
In the meantime, China’s brands are increasingly looking abroad. Despite very low sales figures, the Chinese car brand is planning in Germany And to stay Europe. “In Europe, customer satisfaction is a top priority for us,” said NIO board member William Li (50) in Shanghai. It doesn’t matter whether it was thousands or hundreds of customers.
In addition, the manufacturers are also pushing to South America and Southeast Asia. But out of worry about a flood of cheap Chinese cars, the EU and even China’s close partner intensify Russia The trade barriers. According to experts, Beijing’s e-car exports should grow more slowly this year.
Constantly new competition on the market
But large tech companies also mix the market in China. The company known for its smartphones Xiaomi successfully launched his first electric sedan SU7 in 2024. Xiaomi relies on “a lot of technology for money”. Also Huawei is active and delivers its software know-how to at least seven car manufacturers. In Huawei shops, the vehicles stand next to the smartphones.
Foreign manufacturers, on the other hand, are under pressure. Your electric models often only play a supporting role. The continuous decline of the German brands in China is also due to their own shortcomings, says automotive expert Zhong Shi. “German cars can definitely keep a certain market share in China, but it depends on who wins – Volkswagen or BMW And Mercedes ”, he explains. Volkswagen, BMW and Mercedes-Benz are sometimes considered old-fashioned for many customers.
The manufacturers are now focusing on the needs of Chinese customers. Networking and digital cockpits are in demand – the smartphone on wheels. Analyst Gong advises foreign corporations to no longer only consider China as a production location, but rather a global research and development center. In his view, you have advantages if you link confidence in your brands with the latest technologies developed in China.
Mercedes relies on “Supercomputer”
Mercedes wants to gain a stronger foothold again with more infotainment and new products in China. “We will present the most efficient and intelligent cars we have ever built,” said Mercedes-Benz CEO, Ola Källenius (55), in Shanghai. He spoke of “supercomputers on wheels”.
China is the most important market for the Swabians and important for technical innovations, said Källenius. At his meeting with state and party leader Xi Jinping (71), he emphasized that China and Mercedes combine a “deep friendship”. Mercedes also works with the company behind the TikTok social media app Bytedance Together to integrate their model for artificial intelligence into the Mercedes cars in China, explained Källenius.
More on the subject
On the eve of the car show in Shanghai, Mercedes presented a long version of the E-Auto model CLA with a range of more than 860 kilometers. With the Vision V, Mercedes also showed a version of a vans that was not intended for the sale.
In China, the Stuttgart people last weakened. Mercedes with 152,800 vehicles still sold more than every third car in China. The paragraph fell by a tenth at the beginning of the year. Mercedes will provide the trend reversal of Mercedes new Chinachef Oliver Thönen (41), one of four new board members, The Mercedes CEO Källenius should save
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