By ZHOU Shuqi
Ten years ago, when electric cars first showed up at the Shanghai International Automobile Industry Exhibition (Auto Shanghai), they were concept models. This year, all the attention is on EVs. ICE cars barely get a look in.
Tesla has stayed away this year, leaving the stage at Auto Shanghai free for local EV makers to steal the show. On Tuesday, the first day of the fair, the National Exhibition and Convention Center was packed with reporters from all over the world eager to see the latest releases from Chinese startups.
Biggest EV maker, biggest splash
Two years ago, BYD’s booth was smaller than Hengchi’s. Newcomers may be excused for not recognizing the name. Back then, the automaker belonging to floundering real-estate developer China Evergrande, had ambitions to be a world leader in EV sales with a plethora of vehicles ready for production. This year, Hengchi is nowhere to be found, while the BYD location is one of the biggest in the convention center.
BYD brought the Yangwang U8, its luxury electric SUV, to the show. The Yangwang starts at 1.1 million yuan (US$160,000), for delivery in September. It is the most expensive model BYD has ever made. Reporters had to line up for quite some time to get a glimpse of the SUV that makes tank turn.
But it wasn’t just reporters that were queuing up. Jiemian News noticed that mingling with the journalists were engineers and executives of other car makers.
A team of Volkswagen staff showed up at the BYD booth to take a close look at the Seagull, an entry-level electric hatchback launched this week. The Seagull has a top speed of 130 km/h and a maximum range of over 400 km. It can be recharged up to 80 percent in just 30 minutes.
The Seagull is part of BYD’s Ocean series and starts at just 78,800 yuan (US$11,400). A senior VW executive was spotted at the booth, quietly examining the model.
Passed the tipping point
Soon Nissan and Honda staff also paid BYD a visit. Nissan Tuesday unveiled the Arizon, an electric SUV at Auto Shanghai and pledged its commitment to China, long a key market for the Japanese-based company.
Like other global automakers, Nissan faces a declining market share in China from the rise of home-grown companies and plans to launch an EV designed for China. The Arizon will offer a virtual personal assistant, dubbed Eporo, and features a low center of gravity while lacking structural pillars.
Ashwani Gupta, Nissan COO, said on the sidelines of the show: “China has already crossed the tipping point of accepting the electrified car as a modern car. Nissan does not want to miss this opportunity.”
A Honda engineer told Jiemian News that in terms of sales and manufacturing, BYD has “reached the ceiling.” Honda, he said, must do more to catch up.
Honda brought three new electric cars to the show, two of them pre-production prototypes. All three are distinctively “Honda” with sharp edges and flat surfaces. Both prototypes herald Honda’s upcoming EVs designed specifically for the Chinese market.
‘Turn electric and smart’
Bill Russo, former CEO of Chrysler China and now the founder of consulting firm Automobility, remembers how arrogant overseas automakers would swagger into Auto Shanghai as if they owned the show. The attitude is very different this year. Many seem to have realized that they have already lost the EV battle in China.
“Some of them could only hope their loyal fans would continue supporting them or bet on a protectionist local government to offer them some treats,” said Russo. “Those who still want a piece of pie in China must change, turn electric and smart.”
But time is short. Developing a new car model takes years, and Chinese consumers are no longer fixated on the overseas brands of the past. YANG Jing, China corporate research director at Fitch Ratings said once the market saw the foreign joint ventures as weak and lagging behind in EV making, the damage was profound.
The JVs are not oblivious to this trend. Ola K?llenius, chairman of Mercedes-Benz arrived in Shanghai a week ahead of the exhibition to bang the drum for Mercedes’ 27 new models making their debuts at Auto Shanghai.
These include the first full-electric model EQS SUV from its ultraluxury sub-brand Maybach. China accounts for about half of all Maybach sales. The car is a reworked version of the Mercedes EQS SUV with more luxurious materials. It will join Maybach versions of the S-Class sedan and GLS large SUV.
“We are completely redefining SUV luxury of the future,” Mercedes CEO Ola Kallenius said in a statement.
Half of the board of BMW is in Shanghai for a total of three world premieres with the focus firmly on electrification and digitalization. This is the first time that only new EVs from the brand are being exhibited at a show.
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