Exclusive: Key takeaways from Shanghai International Auto Show

The Shanghai International Automobile Industry Exhibition, the first auto show after China lifted its Covid restrictions, was successfully concluded last week. Thousands of car and car parts companies from more than 20 countries and regions participated in this auto show. More than 90 new car models were exhibited and nearly 70 of them were new energy models. What does it mean to have so many new energy vehicle models in such a wide-ranging international exhibition? Where will the new energy vehicle market go in the future? The Shanghai Auto Show seems to be revealing the answers to all this.

1. The new energy vehicle market has occupied the mainstream position in the market, and the market has gradually shifted from a stage of rapid development to a mature and large-scale market.

In terms of the number of models exhibited at the Shanghai Auto Show, the proportion of new energy vehicles is very large. The cancellation of the subsidy policy seems to indicate that new energy vehicles have occupied the mainstream position in the market, and the market has gradually matured into a higher stage of development.

There are a total of 93 new car models unveiled at this auto show, including about 70 new energy car models, accounting for about 75%. In the past three years, the proportion of new energy vehicles in the Shanghai Auto Show and Beijing Auto Show was 38% and 43%, respectively. Such a high proportion of new energy vehicle models means that the new energy vehicle market has entered a new stage. Such a high proportion this year means that new energy vehicles have become or will soon become the main models in the market, and the new energy vehicle market is about to shift from a fast-growing market to a large but mature and stable market.

Meanwhile, players are about to face more intense competition. The major giants in the traditional automotive industry exhibited brand-new electric car platforms, including but not limited to Volkswagen's MEB platform, GM's BEV3 platform, Ford's Global Electronic platform, and Mercedes-Benz's EVA platform. Traditional car companies are focusing on electrification and accelerating transformation to EVs.

The maturity of the new energy vehicle market may continue to accelerate in the future, and the global market may quickly enter a stage of steady growth. A total of 93 new models were launched at this year's auto show, of which about 50 were domestic brands, accounting for more than 50% and most of them were pure electric vehicles. China's new energy industry chain is densely distributed. Domestic players enjoy the advantages brought by a complete supply chain, and at the same time face one of the most competitive and mature markets in the world - the domestic market. Domestic players will aggressively enter overseas markets after completing their overseas layout, and seize overseas markets with highly mature products. The global market may face the catfish effect, competition will intensify, and maturity will increase rapidly.

2. The penetration rate of new energy vehicles continues to increase, which promotes cost reduction and efficiency enhancement of power batteries

Power battery manufacturers did not miss the opportunity of the auto show, showing new power batteries and systems one after another. CATL exhibited a mix-and-match module, trying to use the respective advantages of sodium-ion batteries and lithium-ion batteries to integrate batteries of different materials into the same system, learn from each other's strengths and integrate the advantages of sodium-ion batteries and lithium-ion batteries. At the same time, the agreement signed with Chery on the use of sodium-ion batteries has greatly promoted the commercialization of sodium-ion batteries.