The multinational automobile companies that have participated in the China International Import Expo for seven consecutive years are no longer just pursuing the display of cutting-edge technologies or concept models. They are leveraging the spillover effects of the expo to transform it into an international car sales platform.
Compared with previous years, the vast majority of passenger cars displayed at the Auto Pavilion of this year's CIIE have already achieved mass production and been introduced for sale in the Chinese market. Some products that have appeared on the CIIE stage several times have also completed the transition from "exhibits" to "commodities" this year.
When General Motors first exhibited under the name of its high-end imported car business platform, the Touareg, in 2022, it brought the Chevrolet TAHOE Tahoe, which has consistently ranked first in full-size SUV sales in the US market, to the CIIE venue. The staff at the Daolang booth told Interface News that they received many voices hoping to introduce this model to the Chinese market, and the exhibition guests in charge of procurement wanted to place orders on the spot.
After two years of channel development and market feedback collection, the Taihao was officially launched in China in August this year, becoming the first model sold on the Daolang platform in China. Based on the feedback from previous CIIE events, General Motors plans to introduce its second platform model, the GMC YUKON Yukon full-size SUV, which is scheduled to be launched at the upcoming Guangzhou Auto Show, marking the official start of the GMC brand's journey into China.
The Corvette Stingray hardtop sports car at the Daolang booth. Photo shoot by Zhou Shuqi
Another company that will officially showcase its products is Hyundai Motor. The two high-performance N brand models, Elantra N and IONIQ 5N, which were unveiled at the previous CIIE, have been launched and delivered in China. Among them, the IONIQ 5N, which was launched at this year's Chengdu Auto Show, is the brand's first mass-produced high-performance electric vehicle with a 0-100 km/h acceleration time of only 3.4 seconds.
High performance cars originating from racing tracks are usually the best showcase of the technological strength of automotive companies. However, due to the still nascent stage of domestic racing culture and differences in consumer purchasing concepts, high-performance models that invest huge research and development costs have not yet received sufficient returns in the Chinese market.
Wu Yanbing, the head of the public relations department of Hyundai Motor Group in China, said in an interview with Interface News that the track characteristics of high-performance cars do not conflict with daily driving. "Although the user base of high-performance cars is not as large as that of Volkswagen family cars, it is showing a trend of youthfulness, and users are gradually changing their misconception that high-performance cars can only reflect driving pleasure on the track
Hyundai Group's N brand exhibition car. Photo shoot by Zhou Shuqi
Multiple multinational automobile manufacturers are exploring new growth opportunities on the stage of the CIIE, as another measure to address the dual challenges of profit and sales during their transition to electrification. Due to the continuous decline in market share in China and the high cost of electric vehicles, multinational automotive companies have experienced a general decline in net profit in their third quarter reports.
Interface News noticed that many uniquely designed off-road vehicles and performance sports cars appeared on the exhibition booths of the CIIE Auto Pavilion this year, attracting many visitors to check in. These imported products, which are difficult to see at domestic auto shows, can meet the needs of segmented markets and earn considerable profits.
On the other hand, some overseas brands tend to focus on new energy vehicles that have recently or will soon be launched domestically at the China International Import Expo, using this high traffic platform to attract a large number of potential consumers, which is an advantage they find difficult to obtain when competing with local Chinese brands at regular auto shows.
The key model of the Audi brand is the first PPE platform pure electric vehicle, the Audi Q6L e-tron, which will be launched next year. Interface News learned from insiders that this product is equipped with Huawei's intelligent driving system, in order to catch up with domestic independent brands through "tutoring" in the field of intelligence.
Toyota has also introduced two upcoming pure electric models, the bZ3C and the Platinum 3X. Compared to the previously quiet exhibition booths at the Beijing Auto Show, the two electric vehicles showcased at this year's CIIE have provided many visitors with car experiences and product functions for consultation. A participant told Interface News that she only discovered that multinational car companies have electric vehicle products.
Toyota Prado. Photo shoot by Zhou Shuqi
In the current era of numerous product launches and accelerating pace, consumers can infinitely shorten the heat period of each new car. Interface News found that Volkswagen Group, Volvo, Nissan, and Honda also exhibited some long launched models with the aim of maximizing product exposure and promoting sales.
A staff member at a Nissan booth told Interface News that one of their important tasks at the CIIE this time is to obtain potential consumer leads interested in the product and guide them to test drive and experience the product at the store.
In fact, in order to expand the import of high-quality goods and enrich the domestic consumer market, the Auto Pavilion of the CIIE held its first on-site transaction activity last year. Consumers can place orders directly after reaching a purchase intention on site, and then deliver and pick up the car at the 4S store.
Chairman and CEO of Volkswagen China, Beryl, showcased the Anhui Volkswagen ID, which was launched this year With the crowd. Photo shoot by Zhou Shuqi
Since the first CIIE, new energy vehicles have always been the first product of multinational automotive companies. Differently, based on China's complete electrification industry chain system, most of the new energy products exhibited this year have achieved localization.
Honda's new electric vehicle brand "Ye" unveiled three products at the China International Import Expo. They will not only be put into production in two new energy factories in China, but also make full use of Chinese technological resources in their research and development. The "Ye" brand products adopt Chinese supplier products and technologies such as CATL batteries, Huawei light field screens, Hangsheng Life Sense digital cockpit, and iFlytek voice.
According to data from the China Association of Automobile Manufacturers, in September of this year, the market share of domestic automobile brands exceeded 60%. Multinational automobile companies need to enhance their local research and development capabilities and reduce costs in the Chinese electrification industry chain in order to regain their advantages in the era of intelligent electric vehicles.
BMW Group has established the largest R&D network outside of Germany in China, and its local R&D team is deeply involved in the development of BMW's new generation models; Volkswagen publicly showcased for the first time at the CIIE its jointly developed regional control electronic and electrical architecture CEA with Xiaopeng Motors.
With a strong local R&D layout and close cooperation with top technology companies and local automotive companies in China, we will continue to work closely with Chinese society to create a better travel life for Chinese customers with advanced products, "said Baird, Chairman and CEO of Volkswagen China