This photo taken on Feb 24, 2023 shows the assembly line of GAC Aion, an NEV subsidiary of Guangzhou Automobile Group Co., Ltd. (GAC Group), in Guangzhou, south China's Guangdong Province. Photo: Xinhua

The 22nd Guangzhou International Automobile Exhibition officially kicked off on Friday, with many major global carmakers actively participating in and introducing new electric vehicle (NEV) models. This reflects their continued optimism about the vast potential of China's NEV market, even in the face of growing competition from domestic brands, analysts said.

During the exhibition, which is running from Friday to November 24, 78 new models from global and domestic manufacturers will debut, with 1,171 on display, exceeding the 1,132 vehicles showcased in 2023, with 512 being NEVs, according to local media outlet, Guangzhou Daily.

As the world accelerates toward an electrified future, multinational automakers are intensifying their efforts in electrification to remain competitive in China's rapidly growing EV sector. 

This year's event saw BMW unveiling models such as the all-electric i4 and i5 eDrive40L. Meanwhile, Audi, in partnership with Huawei, showcased the A5L equipped with Huawei's intelligent driving system, set for release in the middle of 2025.

The German carmaker Mercedes-Benz announced it had unveiled its first luxury electric hard-core G-Class off-road vehicle G580, the new electric EQE, and the 2025 GLC coupe SUV at this year's auto show, according to a statement the company sent to the Global Times.

"The launch of this new model completes our lineup in the luxury EV segment, ushering luxury hard-core off-road vehicles into the electric age," Duan Jianjun, president and CEO of Beijing Mercedes-Benz Sales Service Co. said in a statement sent to the Global Times.

This year, Mercedes-Benz introduced the long-wheelbase C-Class and GLC SUV models with advanced cockpit and driving systems, and the company is rapidly incorporating its latest intelligent production advancements into additional models, Zhang Yan, senior executive vice president of the company said.

Chinese domestic brands such as BYD, NIO, Xpeng, Li Auto, and Xiaomi showcased innovative new products at the auto show, emphasizing the increasing mainstream adoption of NEVs in China.

China's NEVs have seen remarkable advances in electrification and intelligent technologies, serving as a new driving force for high-quality development in the automotive industry, observers said, adding that this trend has motivated global automakers to participate actively in the event and further engage with the expansive Chinese market.

At the recently concluded China International Import Expo (CIIE), multinational automakers expressed continued optimism about the Chinese market and outlined plans for future investments, committing to strengthening partnerships, advancing electrification, and accelerating digital transformation, to meet Chinese consumer demands, according to media reports.

Audi announced during the CIIE its partnership with SAIC to launch a new brand, AUDI, marking the first instance of a traditional premium car brand unveiling a new strategy tailored for the Chinese market. 

Facing stiff competition from China's pioneering domestic EV brands, multinational automakers' investments and collaborations in China are poised to capitalize on the country's rapid innovation and expansive consumer market potential, unlocking new growth opportunities within the Chinese market, observers said.

Data from the China Association of Automobile Manufacturers (CAAM) revealed that China's annual NEV production has exceeded 10 million units, making it the first country globally to reach this milestone, CCTV reported on Thursday.

CAAM also stated that with the continued impact of supportive policies and heightened sales efforts by automakers and dealers toward year-end, vehicle demand is expected to grow steadily, sustaining an upward trend in the final two months of the year.

With 90 percent of the vehicles purchased by domestic consumers, the fast growth of China's NEV industry highlights the potential of China's mega-sized market. It also demonstrates the firm resolve of the Chinese government to advance green and low-carbon development and contribute to global carbon neutrality, Lin Jian, a Chinese Foreign Ministry spokesperson told a press conference on Friday. 

According to the statistics of the International Energy Agency, to realize carbon neutrality, total global EV sales will need to reach 45 million in 2030. China will continue to promote high-quality development and high-standard opening-up, deepen cooperation in the industrial and supply chains of new energy, advance tech innovation, and the development of relevant sectors to offer the world more high-quality green products and better turbocharge global green development, Lin added.

Global Times