China: The New Battlefield for EVs

The 17th Shanghai Motor Show was held from April 21st to 28th, 2017, at the city's exhibition center.

There were 113 world premieres this year. Following the trend of long-wheelbase models exclusive to the Chinese market four years ago, and SUVs/crossovers two years ago, what is the trend this time?

One is the premium compact sedan.

Mercedes-Benz unveiled the "Concept A Sedan" as a world premiere. In response, Audi, together with China's FAW, revealed the Audi " A3" in China for the first time.

As a representative from a well-known German supplier noted, Chinese drivers prioritize "brand first, fuel efficiency second, and comfort third." With the government's implementation of China's version of eco-car tax reductions, it's a natural conclusion that combining these factors leads to a demand for more compact and premium vehicles.

Indeed, the Mercedes-Benz A-Class (hatchback) has become more noticeable on the streets of Shanghai compared to two years ago. It's clear that the new generation of drivers is seeking more compact and sporty models.

Mercedes-Benz concept A sedan

Volkswagen I.D. Cross

Meanwhile, several brands are focusing on minivans.

This trend, which showed early signs at the Beijing Motor Show in 2016, anticipates increased demand from families following the abolition of the one-child policy in 2016.

The announcement of zero-emission vehicles was also active.

Volkswagen unveiled the "I.D. Crozz," the third model in its new generation of EVs. Audi also presented the "e-tron Sportback concept." Volvo announced that it will begin production of its first electric vehicle (EV) in southeastern China in 2019.

In line with environmental pollution control measures promoted by governments in various Chinese cities, preferential license plate issuance (in Shanghai) and other incentives are being offered for zero-emission vehicles.

For these reasons, manufacturers are positioning China as the primary battleground for EVs. Furthermore, Volvo announced plans to export EVs produced in China globally.

The "Fast Fashion" of Cars Accelerates

Another notable trend is the investment in design by Chinese manufacturers. For example, they are actively recruiting design directors with experience from European brands.

Great Wall Motor's new luxury brand, "WEY," appointed Pierre Leclercq, who was responsible for models like the " X5" and " X6" at BMW, as Vice President of Design starting in 2013.

BYD, also known as a battery manufacturer, has appointed Wolfgang Egger, a designer who worked on the "8C" for Alfa Romeo and also at Audi, as Design Director since 2016.

WEY Pi4 VV7x

BYD The Dynasty

The trend of actively utilizing European design centers and collaborators is more pronounced than ever.

With their enhanced design capabilities, they are now looking towards Europe. Chinese manufacturers, who previously attempted to enter the European market but withdrew due to issues like design infringement and inadequate compliance with safety standards, may soon re-enter the European market.

It is reported that "Great Wall Motor" has plans to sell "Borgward," a brand name borrowed from a historic German marque, in Europe.

"MG," once a well-known British brand and now with its trademark held by "SAIC Motor," is signaling a return to sporty models and plans to expand its sales, currently limited to the UK, to mainland Europe by the end of 2019.

MG e-Motion Concept

Link&Co 01

"Lynk & Co," a new brand launched by "Geely Auto" targeting the millennial generation, also plans to launch in Europe and the United States in the first half of 2019.

Apple, with its cool design, has overcome user prejudice against its country of manufacture. Only a very small minority of users now care that Apple products are made in China. The same can be said for "ZARA" and "H&M"; very few customers are conscious that many of their products are made in Bangladesh.

Some might argue, "Cars are high-value items. That won't happen."

However, in Europe, where production locations have become borderless, it's almost unheard of for someone to insist, "Mercedes or BMW must be made in a German factory."

As this mindset evolves, if revived European brands from China or sophisticated new brands land in Europe at affordable prices and elicit a "Cool!" reaction from the new generation of users, we might witness an "Apple & ZARA phenomenon" in the automotive world.

Will the Next Elon Musk Emerge?

Another trend, even more noticeable than last time, is the presence of numerous startup companies.

For instance, "NIO" displayed five units of its sports car equipped with autonomous driving functions, despite its relatively low name recognition. Their presentation, seemingly demonstrating their commitment to mass production, stunned the press.

Preston Thomas Tucker, whose story was made into a movie in the 1980s, gathered significant investment in post-WWII America but ultimately succumbed to pressure from established manufacturers and went bankrupt. He was sued for fraud, and by the time he won the case, his energy was completely depleted.

Quoros model-K-EV concept

Iconic Seven

John Zachary DeLorean, the creator of the DeLorean, known as the "time machine from Back to the Future," also launched projects involving top designers, engineers, and even governments, but was caught in a drug sting operation, leading to his swift downfall.

The automotive business is a world with an extremely low success rate for newcomers.

Nevertheless, seeing "EVs" and "autonomous driving" as historical turning points in the 131-year history of automobiles, several companies are emerging, aiming to rival Elon Musk.

In contrast to the mature shows in Europe and the US, Shanghai is the most exciting motor show in the world.