Global Automakers Showcase Latest Electric Vehicles at Shanghai Auto Show

(MENAFN) The Shanghai auto show, the first full-scale sales event in four years, is underway, with more than a dozen new electric SUVs, sedans, and muscle cars set to be unveiled by global and Chinese automakers. The crowded market has become a workshop for developing self-driving cars, electric vehicles (EVs), and other technology, leading to intense competition among automakers to roll out faster, more luxurious, and more feature-drenched EVs. This year's EV sales are forecast to rise another 30 percent, with drivers in China buying 5.4 million pure-electric vehicles last year, or about two-thirds of the global total of 8 million, plus 1.5 million gasoline-electric hybrids.

Established global brands face intense competition from Chinese rivals, which have benefited from billions of dollars in subsidies provided by the ruling Communist Party to buy an early lead in an emerging industry. The Chinese government is winding down government support and shifting the burden to automakers by requiring them to earn credits for EV sales. As a result, manufacturers are pouring billions of dollars into developing models that can compete on price and features without subsidies. Many are forming partnerships to share soaring costs.

Executives from the United States, Europe, and Japan are flying in for the event for the first time since 2019, after anti-virus curbs that blocked most travel into China were lifted in December. Chinese auto shows went ahead during the pandemic, but on a smaller scale. Global brands were represented by employees of their China operations.

The ruling party's support for EV development is part of plans to gain wealth and global influence by transforming China into a creator of profitable technologies. The campaign has strained relations with Washington and other trading partners, which are cutting off access to advanced processor chips used by makers of smartphones, electric cars, and other high-tech products. However, China's own foundries can only supply low-end chips used in many cars but not processors for artificial intelligence and other advanced functions.

The auto show will see Volkswagen AG, China's top-selling brand, display 28 models, half of which will be electrified. VW will debut its ID.7 limousine, which promises a 700-kilometer (435-mile) range on one charge. China's BYD Auto, which competes with Tesla Inc. for the title of the world's best-selling electric automaker, will display its U9 supercar from its luxury Yangwang brand for the first time. The automaker says the U9, with a 1 million yuan ($145,000) sticker price, can accelerate from zero to 100 kph (60 mph) in two seconds.

Other automakers, including BMW AG, Maserati, Mercedes Benz, Toyota, Nissan, and Honda, will also unveil their latest models at the Shanghai auto show. The Western and Japanese brands need to be more aggressive about EV development to keep up with China's rapid evolution, according to industry analysts. LMC Automotive's John Zeng said many take too long to create models abroad without Chinese input, leaving them lagging behind Chinese models in driving range and equipment by three or four years.

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