Beijing's historic backing of EV and hybrid development has seen over a hundred Chinese brands emerge in a relatively short space of time, all jostling for a piece of the world's largest auto market.
That fray is credited with fostering speed and innovation, but the effect on individual companies can be harsh.
"It's a very competitive field," Xpeng's co-president Brian Gu told AFP at the startup's booth, where as well as cars, a humanoid robot and a concept flying car were on display.
"Not every player here will ultimately survive because the criteria to succeed is much higher than before."
As well as mastering hardware, engineering and manufacturing at scale, companies now need to be pioneers in the fields of AI, software and predicting the future -- "how to build a car for the next generation", Gu said.
Some startups have already gone bust, while brands including SAIC Motor, BYD and Geely are engaged in a brutal price war.
"We've gone through a survival of the fittest phase," Zhu Jiangming, chairman of Leapmotor, told media.
"The preliminary round is now over," he said. "In the next stage, competition will intensify even further, entering what you might call the finals."
Of the startups that entered the market around 10 years ago, Zhu said, Leapmotor, Xpeng, Nio and Li Auto were in the strongest position.
But new competitors had since entered the fray, he added, such as consumer electronics giant-turned-carmaker Xiaomi, as well as international rivals.
The market was "extremely intense", Nio's president Qin Lihong told AFP.
Companies had to make sure they excelled in all areas -- technology, marketing and long-term thinking.
"I believe there's no single silver bullet for any company to guarantee victory in this race," he said.
All three men, though, insisted their company had what it took to come out on top.
"I would think that the industry will continue to consolidate," said Gu.
"The top five to seven players will have the lion's share of the market, whereas now you have dozens of brands here. And in that process, the company that truly possesses the full stack capability will thrive."
Nissan announces accelerated China push
Shanghai (AFP) April 23, 2025 -
Japanese auto giant Nissan on Wednesday announced the launch of two models aimed at picking up speed in its key market of China, where it has been outpaced by local rivals.
At industry show Auto Shanghai, the group announced an investment of 10 billion yuan ($1.4 billion) into China, and said it would increase the number of new models it planned to launch by summer 2027 to 10, up from eight.
The group's China chief Stephen Ma told a press conference the aim was to match Chinese competitors, and that Nissan had been slow in approaching the market with new models.
"We were not at the same speed, mainly because the Chinese brands were exceptional with speed," Ma said.
With fewer than 800,000 vehicles sold, in the 2023 financial year Nissan's sales fell by 24.1 percent in China, the world's leading car market.
The company is struggling on several fronts, with fragile accounts and an aborted merger attempt with Honda exacerbated by the tariff turmoil affecting its biggest market, the United States.
The group's renewed China offensive was on display at its booth on Wednesday, in the hulking form of the Frontier Pro truck.
It is Nissan's first plug-in hybrid vehicle, and designed to appeal to Chinese consumers' tastes.
The N7 electric sedan, meanwhile, produced with local partner Dongfeng, promises a range of up to 635 kilometres (395 miles), customisable lighting and advanced driving assistance systems.
Nissan also plans to export the two models outside of China "in less than a year", Ma said, without specifying where -- other than not to the United States.
Porsche aims to drive flagging China sales with luxury
Shanghai (AFP) April 23, 2025 -
Struggling with sagging sales in China, Porsche is aiming to bounce back by targeting wealthy customers with luxury features, its team said at the Auto Shanghai industry show.
The Volkswagen Group's sports car brand announced on Wednesday that it would launch an on-board computer "infotainment" feature next year, designed for its Chinese customers.
The automaker also presented an updated version of one of its most expensive models, the GT3, as well as a 1970s-inspired limited edition of its 911 convertible in olive green.
Porsche sold fewer than 9,500 cars in China in the first quarter of this year, down 42 percent year-on-year, according to the company.
It attributed the decline to the "continuing tense economic situation in the Chinese market and Porsche's focus on value-oriented sales, which aims to balance demand and supply".
In Shanghai on Tuesday evening, Volkswagen Group boss Oliver Blume told reporters that the luxury market in China has changed.
"The electric segment, especially in the electric era, still doesn't exist," Blume said.
However, he added, "Porsche has an opportunity to position its product."
The brand is "sharpening its strategy on low volume, (and) bringing more exclusivity".
In particular, Porsche intends to offer more customisation options for its vehicles.
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