Shanghai Auto Show 2025: Electric Dreams and Smart Chases
Developments at the Shanghai World Expo - Exhibition Developments at the Shanghai Expo
While electric vehicles dominate the Shanghai Auto Show scene, they've become more of the norm rather than the exception amid a fiercely competitive Chinese market. The focus now is on digitalization, smartness, and entertainment. Mercedes-Benz CEO Ola Källenius calls it a case of cars becoming "supercomputers on wheels". Here's a glimpse of the trends at the Shanghai Auto Show in 2025:
Fun-Fueled Smart Cars
In a city as tech-savvy as Shanghai, a well-developed infotainment system is a given for the world's largest automarket. Manufacturers are even boasting the possibility of playing computer games in the back seat! Naturally, your own smartphone, whether it's an Apple device or a Huawei, should seamlessly integrate into the system. AI-controlled voice assistants, some using technology from Chinese company DeepSeek, are also part of the mix.
Chinese market leader BYD stirred up excitement before the show with its new "God's Eye" assistance system. The partially autonomous driving assistant system will be a standard feature in all new BYD models, from luxury Yangwang brand vehicles to affordable Seagull models. The goal is to make such systems affordable for everyone. Consequently, German manufacturers are also embracing this trend, with Volkswagen presenting an assistance system developed in China at the show.
The German Twist
Overall, German companies at the show have showcased the fruits of their "In China for China" strategy. Auto expert Peter Fintl calls the show a "festival of the learning ability of the German industry".
German manufacturers have caught up in the software and digitalization game, some say. "They're taking the challenge seriously and really putting in the effort," says expert Beatrix Keim from the Center Automotive Research (CAR). However, these investments and efforts must still translate into a rising market share.
German manufacturers are "wooing Chinese car buyers with new concepts," says industry expert Ferdinand Dudenhöffer. Not being in China is not an option, he says. "China will still be more important, that's the message from Shanghai."
The Race Heats Up
Volkswagen expects the competition to intensify from Chinese tech companies like Xiaomi and Huawei but believes it's well-equipped technologically. "From my perspective, the playoff season is starting now," said Volkswagen China CEO Ralf Brandstätter, using a sports analogy.
Some market participants might still catch up – but not all will survive, Brandstätter cautioned. Meanwhile, Mercedes-Benz CEO Källenius maintained that efficiency will separate the winners from the losers: "Invest at the highest level, but be more Swabian than ever before in terms of efficiency."
China's Xiaomi accident overshadows the show
Despite a focus on autonomous driving technology, the topic seems to have taken a back seat at the Shanghai Auto Show. "I had expected more," says expert Keim. The likely reason for this restraint could be a serious accident involving a Chinese tech company Xiaomi's vehicle with the driving assistance system activated.
The Chinese authorities quickly tightened regulations, banning misleading advertising terms like "autonomous driving", "intelligent driving", or "self-driving". This has led many manufacturers to scale back ambitious announcements about autonomous mobility at the show.
Some observers see this shift as potentially advantageous for German manufacturers, whose image may have seemed a bit outdated in recent years but is still associated with safety and reliability.
Unconventional Spotlight
Notable this year were some manufacturers drawing attention with less common companions. For instance, the Chinese traditional brand Hongqi, emerging battery maker CATL, and XPeng unveiled concepts of drone-like flying devices – electrically powered vertical take-off and landing vehicles (eVTOLs).
- Shanghai
- Auto
- China
- Automarket
- Electric vehicle
- Autoshow
- CEO
- Ola Källenius
- Huawei
- BYD
- Volkswagen
- Xiaomi
- World premiere
- Video game
- Apple
- Fast-charging battery
- Full-domain electric drive platform
- Gaze control
- AirVision Instrument Panel
- Skyline Pillar-to-Pillar Displays
- AI-driven voice assistants
- 1255+ innovation engine
- China Changan
- The Commission, in light of the Shanghai Auto Show's focus on digitalization and smartness, has also been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation, considering the increasing intelligence and potential use of AI-driven voice assistants in vehicles.
- At the Shanghai Auto Show, Mercedes-Benz CEO Ola Källenius's comparison of cars becoming "supercomputers on wheels" seems particularly fitting as Chinese market leader BYD, with its new "God's Eye" assistance system, and German manufacturers like Volkswagen, present integrable technology such as full-domain electric drive platforms and AI-driven voice assistants, making them more like supercomputers in their own right.
- As the world's largest automarket, the Chinese automarket, at the Shanghai Auto Show, has not only showcased electric vehicles but also unconventional innovations, such as Hongqi, CATL, and XPeng's presentation of drone-like flying devices, demonstrating that the sky may not be the limit for the Shanghai Auto Show and the Chinese automarket.