Auto Shanghai Unveils Smart-Global Strategies

The 21st Shanghai International Automobile Industry Exhibition has attracted 1,000 exhibitors from 26 countries, rapidly positioning itself as the global auto industry's innovation nexus. Automakers unveiled cutting-edge technologies across 97 new models, with Chinese brands driving an unprecedented intelligence revolution, as highlighted in Kaiyuan Securities' latest report.

Flying taxis towered over the rest of the vehicles on display, offering a glimpse into the future of urban mobility. Known as electric vertical take-off and landing (eVTOL) vehicles, these prototypes aim to transport multiple passengers at a time. CATL, the world's leading battery manufacturer, unveiled its eVTOL concept following its substantial investment in Chinese startup AutoFlight. Meanwhile, Hongqi, better known for its limousines used by China's leaders, revealed its "flying car" concept, boasting a purported range of 200 kilometres as it prepares for testing later this year.

Carmakers are competing fiercely to cater to hyperconnected consumers, outfitting vehicles with massive screens up to 65 inches wide. These displays can be found not only in front of each passenger but also in doors, sun visors, and even on car bonnets. European automakers, such as Volkswagen's China-focused brand AUDI, are countering with their own innovations, including a dashboard-wide screen that doubles as an entertainment hub when the car is stationary. Advanced driving systems also promise hands-free navigation, allowing drivers to sit back and relax except in emergencies.

Visitors to the show lined up to experience luxurious interiors, reflecting a trend among Chinese consumers who prioritize comfort and lifestyle features. Mercedes showcased its Vision V, a luxury electric minivan with aluminium seats, wood and silk trim, and a fold-out cinema screen. McKinsey noted that features like fridges, reclining seats, and advanced suspension systems are increasingly sought after in China, with consumers willing to pay a premium for enhanced comfort and technology.

The show also highlighted the growing role of tech giants like Huawei and Xiaomi, which are integrating their devices seamlessly into vehicles to target younger, tech-savvy customers. Meanwhile, McKinsey's 2025 report predicted that cars in China will increasingly be viewed as "second living spaces," blending transportation with entertainment and comfort.