Saturday, April 25, 2026

Chinese EVs geared up to dominate world’s biggest auto show


By AFP
April 23, 2026


Chinese car manufacturers like Xiaomi are at the forefront of integrating AI software and autonomous driving technology into their models - Copyright AFP GREG BAKER

The world’s biggest car show opens Friday in Beijing, with hundreds of thousands of auto fans expected to descend on the Chinese capital to size up the latest sleek, teched-out models on the market.

Legacy overseas brands such as Volkswagen, Toyota and BMW once dominated in China, but have lost market share in past years to domestic firms that beat them to the electric vehicle revolution and undercut them on price.

Chinese manufacturers including BYD, Xiaomi and Xpeng are now also at the forefront of integrating AI software and autonomous driving technology into their EVs.

The Auto China exhibition, hosted at two side-by-side venues in the capital, will span 380,000 square metres (four million square feet), according to organisers — sprawling more than 50 football pitches.

More than 1,400 vehicles from hundreds of foreign and domestic companies will be on show from Friday, when the show opens to industry professionals and the media, and later to the public from April 28 until May 3.

Domestic brands are expected to fight to out-wow competition with upgrades in autonomous driving, battery charging and futuristic transportation.

Xpeng — founded just over a decade ago — said it plans to showcase “the latest progress in robotics and flying cars”, as well as a new smart driving system.

Foreign automakers, meanwhile, are increasingly collaborating with local companies to keep pace with technological advances.

BMW has partnered with Chinese battery maker CATL, while Audi is using Huawei’s driving assistance systems and Volkswagen is developing EVs together with Guangzhou-based Xpeng.



– Fierce competition –



This year, companies will also jostle to sell space, analysts say, with roomy SUVs’ new growth area targeting customers prioritising seating and comfort.

China “has become a customer retention and replacement/upgrade-driven market, and these big SUVs address that need,” independent analyst Lei Xing wrote in a blog this week.

Firms have flooded the domestic market in recent years with trade-in schemes, offering huge discounts to customers to give up their old auto for a new one.

The fierce price war led Chinese officials last year to call for tighter price monitoring and improving long-term regulation of competition.

But newcomers appear unfazed, Lei wrote, naming at least eight EV brands from Chinese automakers that have cropped up over the last two years.

Electric cars, which China dominates, are also getting a boost as spiralling oil prices from the Middle East war nudge drivers away from fossil-fuel powered models.

Companies are vying to outlast the competition on range.

Xiaomi’s CEO Lei Jun recently completed a 1,300-kilometre (800-mile) road trip from Beijing to Shanghai in the new SU7 Pro electric sedan — stopping just once to charge during the 15-hour drive.

Electric vehicles supercharge EU car sales


By AFP
April 23, 2026


Nearly one in five cars sold in the EU in the first three months of this year was an electric vehicle - Copyright AFP/File Jonathan NACKSTRAND

Sales of new cars jumped last month in the European Union as consumers turned to electric vehicles as petrol prices soared due to the war in the Middle East, data showed Thursday.

Overall sales rose 12.5 percent in March from the same month last year to 1.16 million vehicles, according to registration data from the European Automobile Manufacturers’ Association (ACEA).

That jump helped the market attain a four percent rise for the first quarter overall following declines in January and February.

Sales of fully electric vehicles soared by 49 percent, with plug-in hybrids also jumping 20 percent.

Over the first quarter hybrids were the top choice of European consumers, accounting for 37 percent of overall sales.

Plug-in hybrids accounted for another 10 percent of market share.

The market share of simple petrol motor vehicles slumped to 23 percent in the quarter, down from 28 percent a year earlier.

Fully electric vehicles accounted for just over 19 percent of overall sales.

The ACEA noted the sales performance of electric vehicles varied strongly by country, with Italy, France and Germany posting strong gains.

Petrol prices spiked throughout Europe after the United States and Israel attacked Iran on February 28, resulting in a near block on oil exports from the Gulf and leading Iran to retaliate by attacking energy facilities throughout the region.

Meanwhile, sales in Belgium and the Netherlands fell.

The Volkswagen group kept its top spot in the EU market in the first quarter, with its market share dipping to 26.4 percent despite its sales edging higher.

That was primarily due to Stellantis, whose Fiat, Citroen and Opel brands saw sales surge and boost the group’s market share.

Another major European car manufacturer, Renault, saw sales slide in the first due to transportation problems affecting its low-cost Dacia brand.

Sales of Teslas jumped nearly 60 percent from the first quarter of last year when Elon Musk’s involvement in the Trump administration turned off European consumers.

Chinese EVs look to sideline foreign brands at Beijing auto show


By AFP
April 22, 2026


Dozens of carmakers will display their latest models during the 10-day exhibition in the Chinese capital - Copyright AFP Adek BERRY


Sam DAVIES

The world’s biggest auto show opens in Beijing on Friday, as Chinese manufacturers solidify their status as industry innovators and foreign brands face ferocious competition in the country’s giant car market.

Brands such as Volkswagen, Toyota and BMW once dominated in China, but have steadily lost market share to domestic firms that beat them to the electric vehicle revolution and undercut them on price.

Electric cars are also getting a boost as oil prices sent spiking by the Mideast war nudge drivers away from fossil-fuel powered models.

Dozens of carmakers will display their latest models at the 10-day exhibition in the Chinese capital, with domestic manufacturers like BYD, Xiaomi and Xpeng now at the forefront of integrating AI software and autonomous driving technology into their EVs.

Foreign brands have been “too slow to localise decision-making and product development”, said Bill Russo, founder of Shanghai-based consultancy Automobility.

“The basis of competition in China has fundamentally shifted from hardware and brand to software, speed, and ecosystem integration,” Russo told AFP.

Mercedes-Benz’s China sales plunged 19 percent last year, while fellow German brand BMW saw sales hit their lowest level since 2017.

Volkswagen, long the largest seller in China, is battling to maintain a Chinese market share while also fending off competition at home.

The German car giant plans to cut 50,000 jobs domestically by 2030, after post-tax earnings fell 44 percent last year.

– ‘Centre of gravity’ –

“China is now the centre of gravity for automotive innovation, not just production,” Russo said.

Foreign automakers are increasingly collaborating with local companies to keep pace with technological advances.

BMW has partnered with battery maker CATL, while Audi is using Huawei’s driving assistance systems and Volkswagen is developing EVs together with Chinese brand Xpeng.

“The golden time for foreign brands has passed,” said Ernan Cui, an analyst at Gavekal Dragonomics in Beijing.

“Chinese brands… are upgrading much faster.”

Foreign manufacturers also face being outcompeted in other markets, as Chinese carmakers look abroad to boost profitability.

Chinese brands already control around a fifth of the auto market in Latin America, and plan to boost overseas production to 3.4 million vehicles by 2030 from 1.2 million in 2025, according to consulting firm AlixPartners.

Major players like BYD have high hopes for the Middle East and European markets, with sky-high tariffs keeping Chinese models out of the United States.

The European Union had imposed tariffs of up to 35.3 percent on EVs imported from China, but in January agreed that Chinese carmakers could accept minimum prices to sell into the bloc.

Still, BYD is building a factory in Hungary to manufacture cars for Europe, Leapmotor is due to start making EVs in Spain this year and Chery said Tuesday it wants to produce a small electric vehicle in Europe.

– Too many players –

But Chinese brands are also facing headwinds as a ferocious price war at home eats into profit margins.

“There are still too many players in the market with too much investment behind them,” according to Cui.

“The losers are not quitting the market as fast as they are supposed to because they have investors’ backing, local governments’ backing, who do not want their existing investments to be written off,” she said.

BYD logged a record 2.26 million EV sales in 2025, but net profit declined 19 percent.

Overall, Chinese passenger car sales fell 17.4 percent in the first quarter of this year, according to the China Passenger Car Association (CPCA), as the government scaled back incentives for EVs.

In that context, Chinese brands “are increasingly treating overseas markets as a strategic growth pillar rather than simply an outlet for excess capacity”, Russo said.

China exported more than 2.6 million new energy vehicles — which includes electric and hybrid autos — last year, more than double in 2024, according to the China Association of Automobile Manufacturers.

Meanwhile, higher oil prices caused by the US-Israeli war on Iran are reinforcing the economic incentives for EVs, which is likely to further benefit Chinese brands, according to Russo.

Exports of Chinese electric vehicles more than doubled in March, compared to the same month last year across all manufacturers, according to the CPCA.

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