The Shanghai Auto Show, which began on April 23, 2025, featured more than 100 new electric vehicle (EV) models from brands such as BYD, Volkswagen, and Nio.
The Shanghai Auto Show is taking place amidst uncertainties surrounding the US-China trade war and the introduction of stricter regulations in China regarding smart driving features. As the world’s largest auto market, China faces challenges due to tariffs that disrupt supply chains and impact demand.
US President Donald Trump’s 145% tariffs on Chinese imports and China’s counter-tariffs have lowered global growth forecasts, prompting US auto groups to urge tariff reductions. Tesla reported a 22% drop in China sales and a 71% Q1 profit decline, with CEO Elon Musk citing delays in Optimus robot production due to China’s rare earth export curbs.
Made it to China for the 2025 Shanghai Auto Show. Keen to see the new products! 🥳🇨🇳 pic.twitter.com/oxDqbaJPQi
— Reba (@_RebaS) April 22, 2025Chinese regulators cracked down on “smart driving” marketing after a fatal Xiaomi SU7 crash, pushing automakers like Xpeng to emphasise safety. Xpeng’s CEO, He Xiaopeng, announced driver training camps. At the same time, Geely unveiled a global safety testing centre.
China’s auto sales increased by 12.5% through March, driven by BYD and Geely. Foreign brands like Honda (-34%) and Volkswagen (-6%) faced challenges. Over 160 brands compete in the market, with only a few operating profitably, including Chery and Li Auto.
