Lexus's First MPV Arrives

The 18th Shanghai Motor Show concluded on April 25, 2019. It featured 129 world premieres, 76 new energy vehicles primarily electric, and 76 concept cars, attracting 993,000 visitors.

For reference, the Geneva Motor Show held a month earlier had 602,000 visitors, meaning the Shanghai show attracted 1.6 times as many.

Despite China's economic growth slowing due to trade friction with the United States, these numbers still indicate a strong interest in automobiles. In Chinese, it was a 'harmonious conclusion'.

This report will focus on production cars and concept cars intended for production.

The Lexus LM, a luxury MPV that has garnered attention in Japanese media, will be launched in China and select Asian markets. As you can see from the photos, it is based on the Toyota Alphard/Vellfire.

The exterior differentiates itself from the Alphard/Vellfire with integrated high/low beam LED headlights, "L"-shaped daytime running lights, a spindle grille, and "L" chrome trim on the sides. It is available in two body colors: black and pearl white.

However, while the Alphard/Vellfire offers seating for 7-8 people, the LM seats only four. The suspension also features the swing valve dampers found in other Lexus models.

The rear and front seats are separated by a glass partition. The 26-inch display, immediately noticeable upon entering, can connect to smartphones and tablets and supports Blu-ray disc playback. A specially designed 19-speaker Mark Levinson sound system is also included. The 14-liter refrigerator can hold two bottles of champagne or wine.

According to Lexus, the LM in China not only emphasizes the importance of the Chinese market in the brand's global strategy but also aims to bring more luxury and luxurious travel experiences to Chinese consumers.

In a release (originally in Chinese), Yoshihiro Sawada, President of Lexus International, stated, "With the rapid development of the Chinese market, today's consumers seek higher quality. They are no longer satisfied with cars merely serving as transportation. Instead, they expect more space, elegant taste, and ultimate comfort. The LM is a new model specially designed for them, serving as an inspirational space for focused time amidst pleasant temperatures, accompanying work, leisure, and entertainment."

According to Chen Chen, Lexus's Marketing Director in China, the number of Lexus users in China is expected to exceed one million soon. The LM is sure to appeal to existing Lexus owners as well.

Furthermore, such luxury MPVs would likely appeal to the growing ride-sharing business in China and Asia. It is quite satisfying to see minivans, once typical of Japan's Galapagos automotive market alongside kei cars, gaining recognition overseas.

The Power to Boldly Embrace Innovation

The Volkswagen Group clearly demonstrated the next market that foreign joint venture manufacturers are targeting in China. They unveiled their new brand, 'Jetta,' at this Shanghai show.

As those familiar with the history know, Jetta originated as a three-box sedan launched in 1979, based on the first-generation Golf two-box hatchback. The latest seventh-generation Jetta is produced in Mexico and China.

This Jetta is positioned as a new brand, separate from the 'Volkswagen Jetta' with its 40-year history. It is manufactured by FAW, Volkswagen's long-standing partner in China.

Regarding the market, manufacturers point to Chinese cities with populations over one million. In many of these cities, car adoption is significantly behind larger metropolises like Beijing and Shanghai. However, the steadily growing middle class in these areas is eager to purchase their first car as a personal mobility solution. Jetta targets these younger customers.

Sitting in the driver's seat, some rough finishes are noticeable, such as the plastic edges of the door pockets. However, considering that even the interior of the first-generation Volkswagen Beetle, well into the 1970s, was comparable, there's a refreshing sense of returning to basics.

We also saw several Chinese startups dubbed 'Tesla killers.' A prime example is XPeng, an emerging EV brand based in Guangzhou, and their SUV-style electric vehicle, the 'G3'.

It boasts advanced connectivity with smartphone apps, interactive voice commands, a large center console display reminiscent of Tesla, and an air purification system designed to combat PM2.5. The base price is 227,800 yuan (approximately $37,800).

The most remarkable feature is a pop-up device on the roof. Its purpose? A camera. It can capture footage of the vehicle's surroundings and share it online. While it might be considered a mere gimmick by some, the power to boldly incorporate entertainment features into production cars, something Western automakers might not consider, is truly impressive.

In terms of design, as seen with BYD's Wolfgang Egger, the trend of appointing foreign designers to senior positions has led to remarkable progress. Zotye, once known for its 'copycat' cars, also recruited Anthony Williams-Kenny, former director of MG's UK design center, in September 2018.

At the next Shanghai show in 2021, the much-talked-about next-generation communication standard '5G' will undoubtedly be standard equipment, ahead of its debut at European and American shows.

From design to technology, the Chinese automotive industry is transforming from an ugly duckling into a swan. Such a sentiment was palpable in Shanghai in the spring of 2019.

Concept Cars