Shanghai Auto Show | VW, Mercedes and BYD unveil flagship EVs

China’s biggest auto show has returned after last year’s Covid-19 hiatus, with international carmakers showcasing their latest models and technology to counter the rise of domestic manufacturers like BYD, Nio and Xpeng. 

Volkswagen and Mercedes-Benz Group led the foreign charge — unveiling new flagship electric vehicles before the show even officially kicked off on Tuesday. Not to be outdone, BYD launched an electric supercar, while Li Auto outlined plans for an expanded line-up of 11 models by 2025. 

Japanese carmakers Toyota, Honda and Nissan will also be keen to promote their electric models, having seen sales in China plateau in recent years. The latest iteration of Toyota’s bZ electric cars and Honda’s e:NS2 and e:NP2 will be front and centre, according to Bloomberg Intelligence analyst Tatsuo Yoshida. 

One notable absentee this year is Tesla. The world’s biggest EV maker won’t be at the show, even though it is a major event in one of its key markets. The EV pioneer attracted unwanted publicity at the 2021 show when the owner of a Model 3 climbed on a display vehicle and shouted that her father almost died when driving her car because the brakes failed. The protest went viral in China and Tesla eventually made a public apology. 

Polestar says customers are cautious nowadays

“Generally the whole world is in a situation where everyone is a little bit nervous and cautious, and that affects all carmakers, even the premium segment,” Polestar CEO Thomas Ingenlath said.

“This is a very natural thing if you have inflation, war in Europe, you have banks collapsing. This is a scenario where I think the consumer is a little bit more careful about spending money.”

The company unveiled its Polestar 4 at the show — an electric SUV with no rear window. 

In a separate interview with Bloomberg TV, Ingenlath said Polestar is spreading its production footprint in light of US President Biden’s landmark climate bill, which seeks to encourage production of EVs in the US. Polestar will make the Polestar 3 in Chengdu and in South Carolina, for the US market, as an example, he said.

Nissan showcases futuristic EVs

Nissan unveiled two EV concept cars aimed at Chinese drivers — the Max-Out convertible sports car and the Arizon SUV. The Japanese carmaker also launched the e-Power X-Trail crossover, which starts presales Tuesday. 

The Arizon features a new virtual personal assistant named Eporo that’s capable of interacting with passengers in a human-like manner. It also has an interactive lighting system that can recognise people and automatically adapt the illumination to suit their preferences.

In February, Nissan increased its sales target for electric vehicles in Europe and Japan, but lowered the electrification target in China to 35% from 40% in fiscal 2026. 

China “is one of the most technologically sophisticated markets in the world,” COO Ashwani Gupta said Tuesday. ”

There is a need for increased electrification and advanced sustainability in the market, and we are working hard to meet it,” he said.

Xpeng eyes international expansion

While China’s EV upstarts have struggled to make much inroads into foreign markets, Xpeng president Brian Gu says the company’s goal is for international sales to eventually be a sizeable contributor to earnings. 

“We see great opportunity for the international market,” Gu said in an interview with Bloomberg Televsision from the auto show.

“But we also realise it’s a long journey, it’s not going to immediately jump-start large volume sales in many countries. It will take probably several years to build global brand and market presence.” 

The company launched its G6 SUV earlier Tuesday, and Gu said he expects the car to be “another volume driver” for the company.  “We feel like we’ll be on solid footing to regain sales momentum. With scale and with cost savings that gets us back on track towards profitability and break even in two years,” he added. 

BYD launches supercar in luxury push

BYD unveiled an electric supercar under its new luxury vehicle brand Yangwang, pushing further into high-end models to build on its dominance in the mass-market segment.

The car, called the U9, was uncovered to gasps of delight from a packed crowd at one of the auto show’s most anticipated events. With sleek lines and a prominent rear diffuser and spoiler, the design is meant to enhance the car’s downforce and performance, BYD’s chief designer Wolfgang Egger said. 

“It’s an artistic expression meant to interpret the energy and beauty that are only available in this exciting new era,” he said. 

The company also announced more details about its U8 SUV, which can drive 1,000 kilometres on a single charge and costs 1.1 million yuan (roughly R2.93m). Pre-sales start Tuesday. BYD didn’t say how much the U9 will cost. 

At the other end of the spectrum, BYD also presented a slew of new mass-market models including one of its smallest and cheapest consumer electric cars yet.

Starting from just 78,000 yuan (roughly R207,641), the Seagull hatchback offers either 305 kilometres or 405 kilometres of range using a lithium-ion blade battery.

The company also showed off its newest hybrid sedan, the Destroyer 07, and its all-electric sports utility vehicle.

Li Auto extends line up

Beijing-based Li Auto plans to have a line-up of 11 models by 2025, including five high-voltage pure-electric cars, one flagship model, and five extended-range electric vehicle that come with a petrol-engine to power the batteries. Currently, the company has four EREV models on the market.

The first electric model will be equipped with CATL 4C Qilin batteries, which can power up a vehicle in 10 minutes to reach 400 kilometres of driving range. It’s also working on establishing charging stations, with a target to build 300 by the end of this year and 3,000 by 2025.

Nio doubles down on Europe

Nio plans to intensify its European expansion as the price war in its home market squeezes margins.

Nio will unveil a model next quarter that caters to European demand for compact cars and that will also be sold in China, CEO William Li said at a media briefing ON Monday ahead of the show. 

Next year, the company will launch a fresh brand of vehicles for the European market that will be made at a new factory in China, Nio president Qin Lihong said at the briefing. The project is code-named Firefly.

Toyota unveils two EVs for China

Toyota unveiled two new models in its battery electric bZ range aimed at the China market. A crossover produced with BYD and a sports utility vehicle made with joint venture partner Guangzhou Automobile Group will hit the market in 2024, chief technology officer Hiroki Nakashima said at the show.

Newly-installed president Koji Sato also pledged in a video message to accelerate the development of electric cars tailored to the Chinese market. And the Japanese automaker will continue to promote research in hydrogen technology applications, looking to launch production of hydrogen-powered vehicles in China next year, Sato said.

Ford to import China-made Lincoln SUVs

Ford plans to import its restyled Lincoln Nautilus SUVs from China, deepening connections with a country that other US companies are abandoning.

The SUVs, to be introduced in the US next year with a sleeker look and a new electric-petrol hybrid powertrain, will be the first model Ford imports from China. Its plant in Hangzhou — a JV with China’s Changan Automobile — already makes Nautilus vehicles for the local market.

The move is expected to draw scrutiny as geopolitical tensions between China and the US escalate. Other American companies, such as Apple and auto suppliers, are looking to exit China. And politicians are already assailing Ford for a battery plant it’s building in Michigan, which will license technology from CATL. 

VW unveils electric ID.7 sedan 

Volkswagen unveiled its first fully-electric sedan as the German carmaker struggles to move past software setbacks that have hurt sales in markets from Europe to China.

VW opened its first factory in China four decades ago, when local competition was pretty much non-existent. Today, China’s domestic carmakers control half of the market, up from a quarter in 2008. VW’s sales have dropped by more than 10% this year alone after falling from 4.2 million vehicles in 2019 to 3.2 million last year.

The spacious ID.7, which starts at less than €60,000 (roughly R1.2m), marks a key effort to compete with Tesla’s Model 3 and a range of Chinese start-ups. At the launch Monday in Berlin and Shanghai, VW highlighted features from assisted parking to its 15-inch screen. It also offers a standard augmented reality display that beams information into the driver’s field of vision, voice-activated controls, and assisted parking and lane-changing. The model, VW’s first sedan based on its new MEB electric-vehicle platform, offers as much as 700 kilometres of range on a single charge.

Mercedes-Maybach enters EV era

Mercedes-Benz unveiled its Maybach EQS SUV, the ultra-luxury brand’s first battery model, picking Shanghai to impress deep-pocketed buyers in China that have pushed sales to a record. 

The vehicle, able to drive 600 kilometres on a single charge, will be priced at roughly $200,000 (roughly R3.66m) — in line with other Maybach models. Features include massage chairs for both front and rear passengers and generous screens. 

The model will support Mercedes’s push into making more vehicles at the top end of its luxury offering as the German carmaker eyes solid results even in a downturn. Last year, Mercedes-Maybach sales jumped 37% to a record 22,600 vehicles. Demand in China was especially strong, with more than 1,100 cars leaving showrooms a month. 

More stories like this are available on bloomberg.com