Viewed from above, the National Exhibition and Convention Center (NECC) looks like a four-leaf clover. Surrounding it would almost be enough to set up its own bus line, and inside, it houses eight double-height pavilions, a central square, and large galleries with dozens of dining businesses that these days are bustling with visitors. Because it is also the stage where, until May 2nd, the Shanghai Auto Show is taking place.
First held in 1985, this year marks its 21st edition, as it alternates with the Beijing Auto Show, which is almost double in size, with around 360,000 square meters of exhibition space. This is equivalent to 45 first-division soccer fields that translate into endless walks, putting a strain on the legs of the journalist -13,000 steps in 2023, an absolute record- who come to this Chinese city to assess the health of the global automotive industry.
Today, this industry is troubled by the three-way trade war between the US, Europe, and China. But the grandeur and energy conveyed by the stands of the dozens of Chinese brands make it clear who is leading the way, as if data such as the supremacy of the Asian giant in electric cars or its global leadership in vehicle exports (5.9 million in 2024, triggering tariff disputes) and in production and sales volumes (over 32 million units) that it has led for 16 years were not enough.
Just pay attention to the details. Some reflect economic power, such as the superb nighttime skyline of Shanghai along the Huangpu River, tree-lined avenues with kilometers of perfectly maintained greenery, or exquisitely executed infrastructures (be it roads with impressive interchanges or high-speed trains).
Other details are observed once inside the NECC. Some are subtle, like the nod from Mercedes-Benz, with several screens hanging from the ceiling displaying their logo, the star, embedded in a red background flag.
And there are much more striking, not to say annoying, details. We refer to the recurring presence of influencers and creators who come in noisy groups with their phones or a cohort of cameras following their every move. Many come from all over the world -especially Latin America- invited by the manufacturers themselves.
But while they are legion at the Chinese brands to pose in front of extravagant proposals with cars dressed as comics or covered in something resembling wool, they shy away from the formality (or seriousness) of the spaces rented by foreign manufacturers. Basically, all the major German groups (Volkswagen, Mercedes-Benz, and BMW), several Japanese (from Honda to Toyota), and even American brands (Buick, Ford, or Cadillac).
"We know our customers better in our local market and respond better to their needs and desires," summarized Li Xueyong, vice president of Chery, the company behind the Omoda and Jaecoo brands, which are only sold outside of China and have entered Europe through Spain.
And those preferences include very similar-looking cars, designed by top designers hired at a high cost. Or screens of all types, from those that occupy the entire dashboard to those that can be moved from side to side. Additionally, as they develop a new model in just 20 months (compared to the 48 or 60 months that used to be the standard), they quickly adapt to changes in demand or introduce technological improvements thanks to collaborations with giants like Huawei or CTAL. The latter, the world's leading battery producer, has introduced a technology that can recover 520 kilometers of range in just five minutes. Finally, they are so confident that they are increasingly venturing into a territory that was always off-limits to them: luxury cars.
So, if before it was considered cool to have a luxury European, Japanese, or American car, today it is to own one from Nio, Xiaomi, Leap Motor, MG, BYD, Exceed, Zeekr, or Xpeng... or from the new brands that are emerging. Like ICar, from Chery, the first Chinese importer for over two decades, offering a family of cute electric 4x4s or extended-range vehicles (like the 'disguised' one in the main photo of this article) that would be a great success if they were to arrive in Europe. All this must be added to the patriotic fervor that the tariffs of up to 145% imposed by the US have generated, while the ones set by the EU last October are being attempted to be changed to fixed minimum prices for electric imports to the Old Continent.
In summary: if in 2020 the local product share was barely 35%, today it has reached 68% and continues to rise. BYD is the best example of this revolution. Its president and founder, Wang Chuanfu, recalled that "in 2019" their only goal was to "survive," and now they are the third-largest global manufacturer, leading in electric vehicles, aiming to approach five million units sold this year.
Meanwhile, European and Japanese brands, also facing Trump's tariffs, are even more optimistic about the opportunities offered by the Asian giant. Lexus, Toyota's premium division, has announced plans to build a factory in the country, and Volkswagen has fully accelerated its strategy"In China, for China," launched in 2024 (marking 40 years of presence here) to regain the leadership it held for decades and lost in 2023 to BYD.
To achieve this, they have no choice but to rely on partners like FAW or SAIC if they want to work "at Chinese speed." That is, adopting technologies -such as platforms- where these companies are more advanced. This strategy, taken to the extreme, materialized in the E5 Sportback, the first model from the joint venture of Audi with SAIC, which will only produce electric models for affluent young Chinese. The company, named AUDI (in uppercase and without the rings), is led by the Spaniard Fermín Soneira.
However, all that glitters is not gold. And much of it is due to pressure from the Chinese government itself. It is true that it was the Chinese authorities who prompted the shift towards electric cars 20 years ago, spurred by a letter from one of their citizens who had worked for several years at Audi. But with their subsidy policy, they are also behind the $17.5 billion in losses suffered by Chinese dealers in the first eight months of 2024, forced into an aggressive discount policy.
In this context, one of the arguments that brands were using to differentiate themselves was to advertise the benefits of autonomous driving in their vehicles. But the State has just announced that it will closely monitor the use of these messages or the designation of "smart cars" after the fatal accident involving a Xiaomi model. Similarly, it has been reported that they are considering mergers among the manufacturers they control -particularly Changan, FAW, and Dongfeng- to accelerate in the electric vehicle business and enhance their export dimension.
The last note goes to the Spanish presence in Shanghai, which has also been noted. On the business side, both Antolín and Gestamp unveiled their latest advances in the components they manufacture for over a hundred clients worldwide at the fair.
Meanwhile, on the association side, the dealership association Faconauto continues to strengthen the strategic alliance they sealed last year in Beijing with their Chinese counterparts from CADA, who are also interested in entering the Spanish market directly. After all, there are already 500 Spanish dealers distributing models from manufacturers in that country.