Global automakers, including Toyota and Volkswagen, took the stage at the Shanghai auto show on Tuesday with built-for-China and electric-drive products to compete for a high-stakes comeback in the world's largest market.
But after a year when trends have shifted sharply against the established foreign brands that once dominated in China, executives from Chinese automakers offered a reality check: the game is moving faster and the pressure to cut prices is getting more intense.
Volkswagen (VOWG_p.DE) said at the show it would introduce 10 more electric vehicle (EV) models by 2026 and cut the time to develop new models by almost 40% to keep pace with faster-moving Chinese rivals.
"Our guiding principle is development in China for China at full speed," Thomas Schafer, chief executive of VW passenger car brands said.
Toyota (7203.T), which has been slow to roll out electric vehicles, used the Shanghai show to unveil two new EVs, doubling the number on offer in China under its mainstream brand. It also introduced a Lexus-brand minivan, the "Luxury Mover," a hybrid designed to be chauffeur driven, a preference for many Chinese luxury car buyers.
Both Toyota and VW's mass-market brands have lost share in China over the past year as the market shifted to EVs and plug-in hybrids where made-in-China brands, led by BYD (002594.SZ), have moved faster.
In a mark of that reversal, BYD outsold both Toyota and VW brand vehicles in the first quarter of this year in China.
On Tuesday, BYD launched an entry-level EV, the Seagull, aimed at the small car market that Toyota has long-dominated with models such as the Corolla, a global best-seller.
The Seagull will start at the equivalent of just over $11,000. By comparison, Toyota's most popular EV on offer in China, the bZ4X, starts at more than $29,000.
"Amazingly affordable," Bill Russo, founder of Auto-mobility, a Shanghai-based consultancy. "This will be the best-selling car in China within six months of launch."
The hatchback-styled Seagull comes with battery options rated at between 305-km and 405-km of range and represents a cheaper alternative to BYD's Dolphin, China's best-selling electric car this year.
Reuters