China's Auto Show: The 'Smartification' Surge Amid Trade Tensions

The Shanghai auto show highlights China's rising electric vehicle market amid trade tensions, domestic market challenges, and a government crackdown on smart driving systems. Industry players are pivoting to safety-focused messaging following regulatory changes and adapting to potential impacts of US tariffs.

At the Shanghai auto show, the focus is on China's burgeoning electric vehicle market as it faces uncertainty due to the U.S.-China trade war and domestic challenges. Over 70 automakers have launched more than 100 new models in a competitive market fraught with potential risks.

With the Chinese government's crackdown on smart driving marketing, automakers are promoting safety and compliance. The tragic accident involving a Xiaomi vehicle has prompted regulators to prohibit terms like 'smart driving' and 'autonomous driving,' shifting industry narratives.

Despite rising vehicle demand, the trade war remains a concern. Industry leaders urge the U.S. to lift tariffs on auto parts to stabilize prices and sales. Meanwhile, as foreign brands like General Motors and BMW incorporate AI technology, they grapple with the competitive pressure from China's advanced local EV developers.

(With inputs from agencies.)