Tuesday, April 18, 2023

POSTMODERN FORDISM
China auto show highlights intense electric car competition

By JOE McDONALD
April 15, 2023

THE CAR SALESMAN LOOKS THE SAME ACROSS THE GLOBE

1 of 9
Visitors look at the Arcfox a-S, an all electric car from Chinese automaker BAIC which claims to have a 708km range on a single charge, at a show room in Beijing, Thursday, April 13, 2023. Global and Chinese automakers plan to unveil more than a dozen new electric SUVs, sedans and muscle cars this week at the Shanghai auto show, their first full-scale sales event in four years in a market that has become a workshop for developing electrics, self-driving cars and other technology. (AP Photo/Ng Han Guan)

SHANGHAI (AP) — Global and Chinese automakers plan to unveil more than a dozen new electric SUVs, sedans and muscle cars this week at the Shanghai auto show, their first full-scale sales event in four years in a market that has become a workshop for developing electrics, self-driving cars and other technology.

Automakers are competing to roll out faster, more luxurious, more feature-drenched electric vehicles in the technology’s biggest, most crowded market. The ruling Communist Party has invested billions of dollars in subsidies to buy an early lead in an emerging industry. Established global brands face intense competition from Chinese rivals.

For the first time since 2019, executives are flying in from the United States, Europe and Japan for the world’s biggest auto show after anti-virus curbs that blocked most travel into China were lifted in December. Auto shows in the industry’s biggest market went ahead during the pandemic, but on a smaller scale. Global brands were represented by employees of their China operations.


Drivers in the world’s biggest auto market bought 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. That was more than one-quarter of total auto sales of 23.6 million. This year’s EV sales are forecast to rise another 30%.

“Consumers lost interest in gasoline cars. That is the biggest challenge for foreign brands to compete in China,” said industry analyst John Zeng of LMC Automotive. “They are going to have to show their best EV products.”

Beijing is winding down government support and shifting the burden to automakers by requiring them to earn credits for EV sales. 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.

Auto Shanghai 2023 fills the cavernous Shanghai exhibition center, a 1.5 million-square-meter (16 million-square-foot) subcontinent of a building that is among the world’s biggest.

Volkswagen AG, the country’s top-selling brand, says it plans to display 28 models, half of them electrified. VW says it 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 world’s biggest-selling electric automaker, says it will display for the first time its U9 supercar from its luxury Yangwang brand. 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 neck-straining seconds.

China’s auto sales peaked in 2017 at 24.7 million but collapsed in 2020 to 20.2 million after dealerships closed as part of efforts to contain COVID-19. They are recovering but are yet to return to the pre-pandemic level.

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.

That 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. China’s own foundries can supply low-end chips used in many cars but not processors for artificial intelligence and other advanced functions.

Sales of gasoline-electric hybrids and pure-electric vehicles rose 26.2% over a year ago in the first three months of 2023 to 1.6 million, according to the China Association of Auto Manufacturers. Sales of pure electrics rose 14.4% to 1.2 million while hybrids increased 75.1% to 433,000.

Tesla and some other brands cut prices by 5% to 15% starting in January after sales growth slowed, though to still-robust levels compared with the slack U.S. and European markets. That prompted warnings the squeeze on an industry with dozens of fledgling brands might force smaller automakers into mergers or out of business.

China also is, along with the United States, a leader in development of self-driving taxis and trucks.

Baidu Inc., best known as a search engine operator, is the most prominent among developers that also include Pony.ai. Geely Group, owner of Volvo Cars, Lotus and Polestar, has announced plans for satellite-linked autonomous vehicles. Network equipment maker Huawei Technologies Ltd. is working on self-driving mining and industrial vehicles.

Baidu and Pony.ai received China’s first licenses to offer autonomous ride-hailing services in Beijing with a safety driver aboard to take over in the event of an emergency in 2022. That came 18 months after Alphabet Inc.’s Waymo started driverless ride-hailing service in Phoenix, Arizona.

“We see very strong support from the government,” said Jason Low of Canalys.

At the auto show, Chinese brand Aito plans to display its new M5 SUV with autonomous technology developed in an alliance with Huawei Technologies Ltd. The telecom equipment maker is expanding into the auto and other industries after U.S. sanctions imposed in a feud with Beijing over technology crushed Huawei’s smartphone business.

China’s market is so huge that even brands whose strongest selling point is roaring, gasoline-powered engines are embracing electrics.

BMW AG says its whole vehicle lineup at Auto Shanghai will be electrified. The German sport luxury brand says it will unveil two new models, the i7 M70L and XM Red Label, and show its M760Le in China for the first time.

Italy’s Maserati, a Stellantis unit known for using high-performance Ferrari engines, plans to unveil its first electric SUV and says its electric sports car will get an Asia premiere.

Chinese luxury EV brand NIO Inc., which competes with Tesla at the premium end of the market, plans to display its latest SUV, the ES6. It promises a 610-kilometer (380-mile) range on one charge.

Mercedes Benz plans to unveil an electric SUV under its luxury Maybach brand and two SUVs. The company also has EV joint ventures with BYD Auto and Geely Group.

Toyota says it plans to unveil two new models in its bZ line of zero-emissions vehicles. Nissan plans to display its Max-Out electric convertible concept car. Honda is debuting a new prototype for its China-focused e:N electric brand.

Despite such investments, Western and Japanese brands need to be more aggressive about EV development to keep up with China’s rapid evolution, said LMC’s Zeng. He said many take too long to create models abroad without Chinese input.

“The model they bring to China lags behind Chinese models by three or four years in driving range and equipment,” Zeng said. “They have to learn to design and test cars in China for China.”


Volkswagen unveils electric luxury sedan at China auto show

By JOE McDONALD
TODAY

1 of 23
Volkswagen's ID.7 Vizzion, its new electric flagship sedan, is unveiled in a world premiere on the eve of the Auto Shanghai 2023 show in Shanghai, China, Monday, April 17, 2023. Global and Chinese automakers plan to unveil more than a dozen new electric SUVs, sedans and muscle cars this week at the Shanghai auto show, their first full-scale sales event in four years in a market that has become a workshop for developing electrics, self-driving cars and other technology. (AP Photo/Ng Han Guan)

SHANGHAI (AP) — Volkswagen unveiled an electric luxury sedan that promises a 700-kilometer (435-mile) battery range as global and Chinese automakers displayed their latest SUVs, sedans and muscle cars at the world’s biggest auto show Tuesday.

Auto Shanghai 2023 reflects the intense competition in China’s fast-growing electric vehicle market after the ruling Communist Party poured billions of dollars into promoting the technology. China accounted for two-thirds of global electrics sales last year.

Brands including General Motors, BMW and Nissan and Chinese rivals BYD Auto and NIO unveiled dozens of new EVs in the cavernous Shanghai exhibition center. Brands touted faster charging, satellite-linked navigation and entertainment, and the future possibility of self-driving technology.

Volkswagen’s ID.7 sedan, the new flagship model for its electric vehicles, was one of 28 models displayed by the German automaker, half of them electrified.

“We are turbo-charging our electric campaign,” said the CEO of VW’s passenger car brand, Thomas Schaefer, who rode onto the stage aboard an electric minibus. Schaefer said VW plans to release another 10 electric models in the next three years.

The show is the auto industry’s first full-scale sales event in its biggest market since 2019 following the end of anti-virus controls in December that blocked most travel into and out of China.

Automakers are looking to China to drive sales growth at a time of slack American and European demand, but that requires then to pour money into creating competitive models that can appeal to Chinese buyers in a crowded market.

Established global brands face pressure from ambitious Chinese newcomers and to meet government sales quotas for electrics. Many are forming partnerships to split soaring development costs.

China is “playing a leading role in the industry’s electric and digital transformation,” said Ford Motor Co. CEO Jim Farley in a recorded message played on a video screen.

Electrics accounted for just over a quarter of the 23.6 million SUVs, sedans and minivans sold last year in China while sales of traditional gasoline-powered vehicles declined.

GM debuted an electric SUV, the Buick Electra E5, ahead of the auto show. Toyota Motor Co. unveiled two new models for its bZ line of zero-emissions vehicles. Honda Motor Co. premiered a new prototype for its China-focused electric brand, e:N.

Toyota also displayed a prototype self-driving taxi developed with China’s Pony.ai, a leading competitor in the country’s fast-evolving autonomous vehicle industry.

Chinese luxury electric brand NIO Inc., which competes with Tesla Inc. at the premium end of the market, unveiled its latest SUV, the ES6, and an update of its flagship sedan, the ET7. Both have digital cockpits and an onboard computer with connections for tablet computers and other devices.

BMW AG showed an all-electric lineup including two new models, the i7 M70L and XM Label Red. The German sport luxury brand’s M760Le had its China debut.

Automakers also highlighted China’s growing role as a source of exports and innovation, especially EVs.

NIO and BYD Auto are among a growing group of Chinese EV brands that are starting to sell in foreign markets. BYD Auto exports to Europe and opened a dealership in Japan this year. NIO started selling in Europe in 2021 and says it plans to serve 25 countries by 2025.

Global brands all have design centers in China and increasingly are drawing on Chinese talent for engineering, software and other development.

VW is adding as many as 2,000 employees to a research and development center in the eastern city of Anhui to work on “intelligent connected vehicles,” Schaefer said. He said a separate software unit would add up to 1,200 employees this year.

“We are gaining innovative strength by taking on local R&D responsibility,” Schaefer said. “Our guiding principle: Developing in China for China.”

The organizers said automakers would debut 100 new models, 70 of them electric, according to Chinese media.

Drivers in China bought 5.4 million all-electric vehicles last year — about two-thirds of the global total of 8 million — plus 1.5 million gasoline-electric hybrids. This year’s EV sales are forecast to rise another 30%.

Beijing is winding down government support and shifting the burden to automakers by requiring them to earn credits for EV sales.

China’s BYD Auto, which competes with Tesla for the title of world’s biggest-selling EV brand, displayed the U9 supercar from its luxury Yangwang brand and an SUV, the U8. 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.

Another Chinese EV brand, Aion, part of state-owned GAC, announced rapid charging technology it said needs as little as five minutes to power up a battery to go 200 kilometers (120 miles).

Aion also unveiled a system it said can remove a drained battery and install a fresh one in as little as two minutes. The company said that would be quicker than filling a gasoline tank, eliminating a drawback to EV ownership.

China’s auto sales peaked in 2017 at 24.7 million but collapsed in 2020 to 20.2 million after dealerships closed as part of efforts to contain COVID-19. They are recovering but have yet to return to the pre-pandemic level.

For drivers who aren’t ready to give up fossil fuels, state-owned BAIC unveiled a hulking, American-style pickup truck, the Mars, with a 6.8-liter diesel engine. The company boasted that with its flaring wheel wells, the Mars is 2.1 meters (6.9 feet) wide.

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.

That 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. China’s own foundries can supply low-end chips used in many cars but not processors for artificial intelligence and other advanced functions.

Sales of gasoline-electric hybrids and all-electric vehicles rose 26.2% over a year ago in the first three months of 2023 to 1.6 million, according to the China Association of Auto Manufacturers. Sales of purely electric vehicles rose 14.4% to 1.2 million while hybrids increased 75.1% to 433,000.

Tesla and some other brands cut prices by 5% to 15% starting in January after sales growth slowed, though to still-robust levels compared with the U.S. and European markets. That prompted warnings that the squeeze on an industry with dozens of fledgling brands might force smaller automakers into mergers or out of business.

No comments:

Post a Comment