Car Fair Shanghai These are the Trends at China's most Important Car Fair of the Year

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In Shanghai, smart cars are in the spotlight. However, a fatal accident shortly before the show also draws attention to the topic of safety. The Germans receive good marks.

Electric cars dominate the auto show in Shanghai. However, a battery drive alone is more commonplace than eye-catching among the world premieres shown. The competitive Chinese market is characterized by a relentless price and innovation competition. Cars are expected to be digitalized, smart, and entertaining at the same time.

Smart Cars that are fun

Without a sophisticated infotainment system, nothing works in the world's largest car market. Manufacturers promote the ability to play computer games in the back seat. The own smartphone—whether from Apple or Huawei—must, of course, be seamlessly integrable. AI-controlled voice assistants, some with technology from the Chinese company Deepseek, are also showcased.

China's industry leader BYD already attracted attention in the run-up to the trade fair with its new assistance system "God's Eye". The semi-autonomous driving assistant is being installed as standard for the first time in all new BYD models—from the luxury brand Yangwang to the affordable compact car Seagull.

The goal is to make such systems affordable for everyone. German manufacturers are also embracing the trend: Volkswagen, for instance, showcases a China-developed assistance system in Shanghai.

"In China for China" Shows Results

Overall, the German corporations demonstrate the fruits of their "In China for China" strategy at the show. Praise comes, among others, from auto expert Peter Fintl. The show resembles a "festival of the learning ability of the German industry."

The Germans showed that they still have it. For years, the corporations had to endure the accusation of having slept on the trend towards electromobility in China. But now, when it comes to a high-quality driving experience, they are better positioned. Experts praise the "Neue Klasse", a new vehicle generation from BMW.

The German manufacturers have at least partially caught up on software and digitalization, it is said. “They accept the challenge and really go all out,” says expert Beatrix Keim from the Center Automotive Research (CAR). However, the investments and efforts must still translate into a rising market share.

The Final Phase of the Survival Struggle Begins

Volkswagen expects intensified competition in light of the growing rivalry from Chinese tech companies like Xiaomi and Huawei but sees itself as well-equipped technologically. "In my view, the playoff season is starting now," said China board member Ralf Brandstätter, referring to the sports elimination games. Some market participants might still catch up—but not all would survive, said Brandstätter.

Mercedes-Benz CEO Källenius, in turn, emphasized that only those who work efficiently will remain in the market: "Invest at the highest level, but at the same time be more Swabian than ever before in terms of efficiency," he summarized.

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The German manufacturers "are vying with new concepts for the lost favor of Chinese car buyers," concludes industry expert Ferdinand Dudenhöffer. Not being present in China is not an option. On the contrary, "China will become even more important, is the message from Shanghai," says Dudenhöffer.

Xiaomi Accident Overshadows Show

Surprisingly, the topic of autonomous driving plays a lesser role at the auto show in Shanghai than initially expected. "I would have expected more," says expert Keim. The reason for the noticeable restraint is likely a serious accident that occurred just a few weeks before the start of the show. Three people lost their lives while traveling in a vehicle of the Chinese tech company Xiaomi—with an activated driving assistance system.

The Chinese authorities responded promptly and tightened the regulations. Misleading advertising terms like "autonomous driving," "intelligent driving," or "self-driving" can no longer be used. As a result, many manufacturers also scaled back their bold announcements on autonomous mobility at the trade fair.

Some observers see a possible advantage for the German manufacturers in the changing climate: Their image may have seemed a bit outdated in recent years, but they are still considered safe and reliable.

From Flying Robots to Plush Cars

Notable this year: Some manufacturers tried to capture the attention of show visitors with rather unusual vehicles. For example, the traditional Chinese brand Hongqi, the emerging battery manufacturer CATL, and Xpeng showcased concepts of drone-like flying devices that are electrically powered and can take off and land vertically.

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