Auto Shanghai 2025, the world’s largest auto expo, opened its doors on Wednesday, offering a vivid showcase of China’s electric vehicle (EV) dominance despite rising global trade tensions. Nearly 1,000 exhibitors including legacy global automakers and emerging Chinese brands are using the event to reveal the next generation of electric and hybrid cars.
Foreign manufacturers, particularly German giants like Volkswagen and BMW, are eager to prove their relevance in a Chinese market now led by local innovators. Volkswagen, the largest foreign carmaker in China, unveiled a suite of EVs alongside a driver assistance system tailored to China’s digital ecosystem. The group aims to roll out over 20 electric and hybrid models in the country by 2027.
BMW’s CEO Oliver Zipse debuted a futuristic white SUV from its “Neue Klasse” line, announcing a China-specific version launching next year. Speaking at the expo, Zipse reaffirmed BMW’s support for open global markets, subtly addressing the rising trade barriers that threaten cross-border automotive trade.
On the domestic front, Chinese EV firms like Nio and Xpeng are in full display. Nio introduced its flagship ET9, featuring proprietary smart driving chips, while Xpeng wowed attendees with an AI-powered battery that promises a 420-kilometre range after just 10 minutes of charging.
Despite rapid innovation, the Chinese market’s hyper-competitive nature poses challenges. Price wars have intensified, forcing some startups to shut down, while bigger players like BYD and Geely fight for market share. To mitigate domestic saturation and trade friction, Chinese automakers are increasingly turning to exports, with China becoming the world’s top passenger vehicle exporter in 2024, outpacing Japan.
Yet, hurdles remain. Nio recently cited logistical issues and tariffs as major setbacks in Europe, and global manufacturers like General Motors and Ford who produce in China are equally concerned about retaliatory tariffs stemming from U.S.-China tensions.
Still, experts argue that the Shanghai expo proves China’s growing influence in the global auto landscape. “If our car industry wants to recapture the successes of the past, it must become more Chinese,” said German auto analyst Ferdinand Dudenhoeffer. As Auto Shanghai runs through May 2, it’s clear the road ahead for EVs runs straight through China.
