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Top executives from global carmakers and auto parts suppliers have voiced their commitment to the Chinese market at 20th Shanghai International Automobile Industry Exhibition, or Auto Shanghai 2023, the first major auto exhibition they have attended in the country since the outbreak of COVID-19.
The biennial event, which runs from Tuesday through April 27, is one of the most important platforms to showcase latest car models and automotive technologies. Over 1,000 foreign and Chinese companies are participating in the event, according to its organizers.
Volkswagen, the best-selling international carmaker in China, is presenting a big lineup of models, including 20 fully or partially electric ones.
Volkswagen is the first international carmaker after a joint venture in the country. Its CEO Oliver Blume said his visit to China "is a bit like coming home". After 40 years of operating in the country, Volkswagen is "sometimes perceived as a Chinese brand", he said.
According to Blume, China's auto industry has seen great progress in the past decades, with some local carmakers having launched "very competitive" products. He said that Volkswagen is speeding up its local decision-making and R&D to tap into China's dynamic growth and high speed of innovation.
Last year, German carmaker BMW AG sold 790,000 vehicles in China, accounting for over one-third of its global total.
"We are very confident about the development of the Chinese market, and will continue to expand our footprint here," said Oliver Zipse, chairman of BMW AG's board of management.
"We feel at home here in China. The growth and success of BMW in the country has created prosperity in both China and Germany," he added.
Toyota's Executive Vice-President Hiroki Nakajima emphasized the Japanese carmaker's commitment to China, especially in the new energy vehicle segment.
Toyota is showcasing four electric models at the Shanghai auto show. It will launch at least 10 by 2026 to hit its global EV sales goal of 1.5 million units, with China as one of the leading markets.
French marque Peugeot launched its first global model 408 X, while its electric concept — the Inception — made its Asian debut on the first day of the event.
"China will continue to be both the world's largest car producer and the world's largest car market," Peugeot CEO Linda Jackson said.
German auto parts supplier Brose expects China to account for 25 percent of its global revenue by 2025, up from 20 percent now, CEO Ulrich Schrickel said.
Cui Dongshu, secretary-general of the China Passenger Car Association, said the brimming enthusiasm and cutting-edge products on display at the auto show will boost the Chinese market.
Statistics from the CPCA show that 6.08 million vehicles were sold in the first quarter of 2023, down 6.7 percent year-on-year. However, sales in March saw a rising trajectory, with 2.5 million units sold, up 9.7 percent year-on-year.
New energy vehicles have been a driving force. In March, NEV sales hit 653,000 units, up 34.8 percent year-on-year. The CPCA estimates that China's NEV sales will reach 9 million units this year, up from 6.9 million in 2022.