2022 Guangzhou Auto Show Starts on December 30th
The 20th Guangzhou Auto Show kicked off on December 30th, 2022.
As the first large-scale international auto show to resume after the optimization of epidemic prevention and control policies, and quite possibly the only A-level auto show to be held in full this year, the Guangzhou Auto Show at the end of this year came as a bit of a surprise. However, this surprise was clearly more pleasant than frightening.
Even though many automakers have given up on the 2022 Guangzhou Auto Show and released their heavyweight models early in November or early December, it has not stopped companies of all sizes from rushing to Guangzhou, including mainstream joint venture automakers such as FAW-Volkswagen, SAIC Volkswagen, SAIC-GM, FAW Toyota, GAC Toyota, Dongfeng Honda, GAC Honda, Dongfeng Nissan, as well as luxury brands like BMW Group, Mercedes-Benz, and FAW Audi. Domestic independent automakers like GAC Group, Great Wall Motor, ChanganAutomobile, FAW Hongqi, SAIC Roewe, Geely, Chery, BYD, and others are all present.
Meanwhile, new energy vehicle brands such as Tesla, NIO, XPeng, Ideal, NETA Auto, ARCFOX, High·Philosophy, JEEKAR, IM Auto, RisingAuto Automobile, Hechuang, Ora, AITO, Geometry, Jidu, and others will also compete at the same venue.
Even more excitingly, over 20 new cars are still scheduled to make their first appearance at the Guangzhou Exhibition Hall, particularly impressive is the return of joint venture brands to the electric vehicle field after a lack of effort in the past two years, with vehicles like the Buick ELECTRA E5, the Audi A6 Avant e-tron concept car based on the PPE electrification platform, the compact all-electric crossover from Smart, the EQE SUV from Mercedes-Benz, and the Toyota bZ3 from FAW.
GAC Group even released its “Wan Yi Guang Qi 1578 Development Plan,” announcing its goal of achieving production and sales of over 4.75 million vehicles, revenue of 1 trillion yuan, and a profit and tax of over 100 billion yuan by 2030.
On the first day of the auto show, the entire southern region and even the entire country’s automobile industry appeared to be filled with vitality and competition.And in order to further stimulate the domestic car consumption market and speed up the resumption of work and production, the 2022 Guangzhou Auto Show first used the newly built Guangzhou Fair Exhibition Hall D area. In addition, the indoor exhibition hall of Guangzhou Fair Exhibition Hall A and the outdoor exhibition area of the north and south plazas make the exhibition scale reach 220,000 square meters, which is equivalent to the previous session.
The 2022 Guangzhou Auto Show finally gave the Chinese car market a breath of relief at the end of the year and had a more decent year-end summary.
The opening of the 2022 Guangzhou Auto Show at light speed is undoubtedly lucky. Today, we will use a few keywords to review various domestic or important auto shows in 2022. The domestic auto shows that have been hit by a stick for a year can finally smile and close their eyes in the last two days of 2022.
Postponement
This word should be the best attributive modifier for domestic auto shows this year, especially A-level auto shows.
Postponement is not cancellation but enters the caching stage. Although there is always a subtle hope of “leaving room for maneuver” with a feeling of a blunt knife stabbing meat.
So, we waited for the postponed Chongqing Auto Show and the postponed Guangzhou Auto Show. We are still waiting for the postponed Beijing Auto Show, and we look forward to next year’s Shanghai Auto Show not being postponed.
Through this word, we can see the determination of auto industry practitioners to survive in a difficult environment and smell the infinite variables facing the global auto market.
Abrupt End
It refers to the Chengdu Auto Show this year.
This auto show, which started in difficulties in the whirlwind of epidemics, expensive electricity, and extreme heat, indeed allowed most automakers to complete the preheating and fermentation of their most important new products this year, but it stopped abruptly when it was the most lively and noisy.
The last auto show that was temporarily cancelled was the Shanghai Auto Show in 2003. The fate of the two seems so similar, but the realities they face are different.
As the first A-level auto show in 2022, the significance of the Chengdu Auto Show has long been not only a weather vane for the development of the automotive industry in the Midwest but also a weather vane for the development of China’s automotive industry in 2022. Although it was only held for four days, it was enough to sound the charge for the accelerated attack of the automotive industry in the second half of 2022.
Of course, the disconnection of the charge signal also indicates the result of this year’s accelerated charge. But many industry insiders believe that the successful opening of the Chengdu Auto Show in such a complex and difficult environment already means half of the success.At this auto show, we saw that the second half of intelligence not only came but also intensified; hybrid began to counterattack pure electric; the new energy product categories are becoming increasingly subdivided and the replacement rate for the fuel car market continues to rise, and so on.
As the second auto show in history in China that was temporarily suspended, the 2022 Chengdu Auto Show was not lively enough, but full of regrets and heroism. However, it is probably the busiest and best domestic auto show this year.
Low Tide
The era when an auto show could bring a small peak in the domestic auto market seems to be gone forever.
Even many media outlets have said that the cancellation of the Beijing Auto Show, the curtailed Chengdu Auto Show, and the New Year’s show of the Guangzhou Auto Show did not actually have any impact on the automobile sales in some major areas of China or the domestic car market.
Especially for ordinary consumers, the significance of an automobile show does not lie in enhancing the vitality of the car market or boosting the economy with big words. They require one simple thing – stimulation, novelty.
So, seven or eight years ago, they looked at oppa; more than ten years ago, they looked at car models; two or three years ago, they had some rights protection.
This year, the domestic auto show market and the movie market became the classic models of “two flowers in one’s hand, both of which wilt” (a Chinese idiom refers to two things going badly). Large auto shows can’t be held, and small ones can’t evoke a buzz; and coupled with the impact of Covid-19 since March this year across the country, especially the lockdown in Shanghai, which caused the car market to be particularly depressed this year.
April and November in previous years should have been the two most anticipated auto show months for the auto industry, but due to the Covid-19 epidemic in Shanghai and Guangzhou, car production of most regions across the country has been hampered, and the market retail has been severely affected, resulting in much more losses than estimated.
Especially in April, passenger car production was only 990,000 units, causing industry losses beyond expectations. Many places even had the idea of gradually abandoning Shanghai’s supply chain and establishing their automobile industry system to prevent certain uncertain factors from coming back and causing a second terrible loss.
November was also not so great. The retail volume of passenger cars was 1.649 million units, a year-on-year decrease of 9.2% and a month-on-month decrease of 10.5%, which was the first-month sequential decline in November since 2008. Moreover, under the background that automobile purchase tax preferences are about to expire, a black swan appeared – Covid-19 had completely changed the normal pattern, leading to a nationwide sales drop, which even caused the market operation interruption in some core consumer areas, dealer closures, and quiet formation of abnormal monthly trends in November that led to huge losses, exceeding estimates.
The above mentioned is not something that can be made up through hosting a few large-scale auto shows.
Small Exhibitions Keep Coming
Therefore, are traditional car shows really that important?
The answer for many second, third or fourth-tier cities is positive, especially those places that are not regarded as industrial centers. Because hosting a car show is definitely better than not doing it, not hosting one would lead to very low attention.
As a result, many small auto shows with greater numbers of exhibits suddenly emerged this year, such as the Changsha Auto Show, the Greater Bay Area Auto Show, the Kunming International Auto Show, the Dalian International Auto Show, the Haikou International Auto Show, and the Jinan International Auto Show, among others.
The most prominent among them is the Tianjin International Auto Show that opened in early November, which became the largest and most complete international auto show in the northern region this year due to the cessation of the Beijing Auto Show. It has become an important platform for demonstrating the integrated development strategy of the Beijing-Tianjin-Hebei region.
Many automakers had originally planned to participate in the Beijing Auto Show, but went to Tianjin instead. This also made the seemingly new auto show in Tianjin instantly elevate in quality.
For example, some small indicators of A-class auto shows – brands such as SAIC Audi, Volkswagen import vehicles, Lotus, Lexus, Tenger Automotive, Smart, Avitta, Jidu, Rui Blue, Horizon, and other brands were all present. 990 vehicles were exhibited, 260 of which were new energy vehicles, and more than 30 new car release activities were held. There were also heavyweight events such as the nationwide debut of the Porsche Taycan GTS and the public unveiling of the BMW i7 for the first time.
On the day of the media conference, many automakers announced new models or new strategic plans according to the rules of A-level auto shows. NIO also brought its battery swap station, supercharging pile, fast charging pile, and home charging pile 2.0 exhibition area to the exhibition site, and almost all new energy brands had corresponding new cars and technologies unveiled at this auto show.
Of course, not all local auto shows can rise so suddenly. More local small car shows are becoming familiar with the soul of agricultural trade fairs – not only holding once a year, but also holding twice a year or even once a quarter.
For example, the Qilu International Auto Show in Shandong province is like this.Every six months, the car show attracts 250,000 visitors and over 500,000 in a year. Some treat it like a fair, but you never know when you might find the perfect car.
Every sale counts, and there’s always new hope.
Media for Everyone
The trend is becoming evident in the Chengdu and Chongqing car shows this year. Many companies, including PR departments, have been seeking the optimal outlet for the past half year. They consider the Chengdu and Chongqing car shows a pivotal turning point for the industry in 2022. During these two most important car exhibitions in western China, various professional automotive media outlets have been overshadowed by bloggers looking to attract followers.
During the Chengdu car show, media outlet “Auto Home” described how professional media lost its foothold:
“As some automotive media and KOLs were still discussing why other attendees came to the media day of the car show, the communication traffic of the media day had already been dominated by live-stream hosts around the exhibition hall. When automotive media were still filming and editing, dealers began selling through live-streams. The role of automotive media was greatly reduced.”
These past two years saw a swift change in the form of automotive media that left many veteran journalists behind.
What draws consumers now is not the content itself, but various short video platforms and live-streaming media, particularly refined videos from Douyin and Xiaohongshu. A few words can generate tens of thousands or even over 100,000 views. PGC automotive media relying solely on vertical platforms are struggling to capture traffic. In particular, those automotive KOLs with an established brand following have become very influential.
“Everyone can participate” has begun to erode “professional opinion.” The continued inclusion of amateur media and cross-disciplinary media has made many independently operated automotive media nostalgic for the golden age of ten years ago.
After this year, there will be more professional automotive media outlets that become extinct, and more KOLs and possibly even amateurs will join in.
Europe
If you can’t make it to Beijing, Chengdu or Paris could work. Although the international exhibitors at the Paris Motor Show were significantly cut back this year, the vehicles on display are still an opportunity for brands to stand out, regardless of exhibit size. After all, any exhibition, no matter how small, is still an exhibition.Of course, it was not the first time that Chinese car companies participated in overseas A-class auto shows, including the 2022 Paris Motor Show. Moreover, an increasing number of Chinese car companies, especially mainstream brands like BYD and Great Wall, view some European auto shows as an indispensable part of their European market expansion plan, instead of merely attending for “Chinese elements,” “participation,” or “experience.”
For instance, BYD, which showcased its Yuan PLUS (ATTO 3), Han, and Tang car models at this year’s Paris Motor Show, came to Paris to pave the way for subsequent deliveries in many European countries, including Norway, Denmark, Sweden, the Netherlands, Belgium, and Germany. Moreover, BYD aims to further expand into the French and British markets by the end of this year.
Overseas media outlets have shown significant support for these Chinese brands as well. Forbes titled an article “The international exhibitors diminished at the Paris Motor Show, but Chinese brands performed strongly,” calling Chinese brands the well-deserved protagonists of the European auto show. Several other media outlets described the high-profile Chinese exhibitors as one of the biggest highlights of this year’s Paris International Auto Show. A German TV station reported, “After dominating its domestic market, China’s new energy vehicles will soon establish a foothold in Europe. In the future, BYD and NIO’s new energy vehicles will be driving on European streets.”
Germany’s Economic Weekly reported that more than 15 Chinese car brands are ready to conquer the European market, citing former Volkswagen CEO’s statement that China’s catch-up in some key automotive technology fields is becoming a surpassing process.
European auto shows, which have suffered from the pandemic in recent years, have brought more opportunities for Chinese brands. NIO, BYD, MG, Polestar, and even Chery, XPeng, Leapmotor, and Aiways have all made their European presence felt.
And the biggest difference at this year’s Paris Motor Show is that some Chinese brands, led by NIO and BYD, have achieved their initial victory and entered the substantive competition stage in Europe.
Currently, the export price of Chinese cars has increased from $12,900 in 2018 to $16,400 in 2022. The number of registered Chinese cars in Europe is also rapidly increasing. Before 2020, only about 10,000 Chinese cars were registered in Europe; however, that number increased to 80,000 in 2021, and it is expected to reach 150,000 in 2022, according to European consulting firm Inovev.## ASEAN
This month, there are at least two important auto shows related to ASEAN.
One is the ASEAN International Auto Show in Nanning, and the other is the Thailand International Auto Show.
The former is quite unfamiliar to us, as it has been running for a full 15 years, but only just received UFI certification in May of this year, making it the first brand exhibition in Guangxi to receive UFI certification. The latter is a car show in Southeast Asia that has gradually become known to the Chinese people as Chinese brands have penetrated the ASEAN market over the past two years.
But ultimately, they are both relatively small regional auto shows.
Over 80 automotive brands and manufacturers are featured at the ASEAN International Auto Show in Nanning. The Thailand International Auto Show has even fewer participating brands: 35 automotive brands from 10 countries, 17 motorcycle brands from eight countries, and many automotive parts manufacturers.
However, both shows are considered the barometers of Southeast Asia’s automotive industry.
The Chinese automotive brands on display are mostly electric or hybrid models, especially at the Thailand International Auto Show. To some extent, the 2022 Thailand International Auto Show in December, which targets the ASEAN market, carries more weight than most domestic auto shows this year.
For example, Great Wall Motors, which is currently gaining ground in ASEAN, not only brought seven models, such as the Tank 500 HEV production version and the Euler Lightning Cat, to the show, but also called the 2022 Overseas Dealers Conference in Thailand and more than 200 overseas dealers from over 50 countries and regions signed in at Great Wall’s booth at the Thailand International Auto Show. It’s quite impressive to think about.
In addition, BYD also brought seven models led by the Yuan PLUS. However, its purpose of attending the Thailand International Auto Show is more significant – just three months ago, BYD signed a land purchase agreement with relevant parties in Thailand and announced plans to build its first overseas passenger car factory in Thailand.
Therefore, although the Thailand International Auto Show is small, it is undoubtedly BYD’s most important auto show this year, where it showcases its brand’s product matrix and innovative technologies to the world.
It is understood that Thailand International Auto Show, as the barometer of ASEAN’s automotive industry, took place for 13 days and attracted over one million visitors, far surpassing some of the important domestic auto shows mentioned earlier.
Diversity
There were fewer professional auto shows in China this year, but there were still many non-professional/cross-industry exhibitions, where many car dealers tried their best to showcase themselves in more diverse spaces and channels.For example, WAIC, the World Artificial Intelligence Conference held in Shanghai in September, regarded autonomous driving as the highlight of the event.
During the conference, more than 20 car companies and self-driving technology providers, represented by SAIC-GM, Mercedes-Benz, Stellantis, WM Motor, Bosch, ZongMu Technology, Auto X, Xpeng, and DeepRoute, participated in various experience activities, such as the RoboTaxi experience by AutoX, the holographic intersection V2X vehicle-road cooperation solution application experience by Zebra Intelligent Perception, and the autonomous parking application experience by ZongMu and WM.
In early November, the fifth CIIE held in Shanghai became the most important showcase for major global automotive companies in 2022. About 90% of the exhibited cars at the scene were new energy vehicles, and many models were even presented for the first time in China and even in Asia, such as the Porsche Mission R concept car.
In addition, the new and updated Tesla Model S Plaid and Model X Plaid, Honda’s second concept car e:N2 Concept, the electric version of the F-150 pickup truck Ford F-150 Lightning, the HUMMER EV SUV under General Motors, and the Celestiq concept version of the flagship Cadillac all made their domestic debut at the 2022 CIIE.
More importantly, the new products exhibited by those automakers at the CIIE were far more than just cars. For example, Toyota’s autonomous driving taxi, the “Autono-MaaS” equipped with XM Intelligent Driving L4 autonomous driving hardware and software, made its first public appearance in China at the event.
Hyundai Mobis, the auto parts giant, introduced the “M.Vision POP” urban sharing-type mobile travel concept car. When driving, users can place their smartphones on the steering wheel, and the information on the phone can be synchronized to the screen in front of the vehicle in real-time. Users can also control the steering of the vehicle through the sensors on their smartphones.
Volkswagen Group brought the latest software application “Neon” developed by its Chinese subsidiary of software company CARIAD, which is capable of flexibly controlling the various lights of the vehicle.
Tesla couldn’t be left out, and brought the Tesla Bot humanoid robot to the 2022 CIIE, which also had its China debut. At this car show that is not quite a car show, Tesla Bot not only walked, climbed stairs, squatted, and grabbed objects, but also withstands about half a ton of weight and performs high-precision actions, such as light and thin object handling and manipulation of mechanical devices.
The significance of auto shows is to showcase new cars. For today’s car companies, it seems too narrow-minded. They clearly need more diverse spaces and audiences because cars today and in the future are no longer just simple means of transportation that can run fast.
Breakthrough
What I want to say at last is still about the Guangzhou Auto Show, which not only broke the time limit, but also broke through the stagnation of the auto show market that had lasted for so long in this year.
The Guangzhou Auto Show has always been hailed as the final battle between China’s auto market and auto shows each year. But this year, it has become the new start and new hope for next year’s auto market.
Of course, judging from the information released by automakers, the number of new cars to be displayed at this year’s Guangzhou Auto Show is slightly lower than in previous years, and even the overall standard of the show is significantly reduced compared to previous years due to the hasty preparation.
According to incomplete statistics, there are about 20 or more models confirmed to debut at this year’s Guangzhou Auto Show, while there were 54 global debut models and 28 concept cars at the 2021 Guangzhou Auto Show. The gap is not insignificant.
Meanwhile, this year, due to the impact of the epidemic, lack of chips, expensive electricity, and other factors, China’s domestic automobile market has shown signs of fatigue in production and sales compared with the end-of-year peak in previous years. According to data from the China Association of Automobile Manufacturers, in November, domestic car production and sales were 2.386 million and 2.328 million units, respectively, down 8.2% and 7.1% from the previous month, and both down 7.9% year-on-year.
But often, the more unlucky they are, the easier it is for everyone to take hope. Public data shows that in 2021, Guangzhou’s automobile production reached 2.96 million units, achieving a total output value of more than 610 billion yuan, ranking first in the country for three consecutive years, with a proportion of 90% and 10% in Guangdong and the country, respectively. According to related data, in the first 11 months of this year, the output value and production of Guangzhou’s automobile industry increased by nearly 12% year-on-year, far higher than the national average.
Looking at the exhibition on the opening day, major automakers are still enthusiastic about participating in the Guangzhou Auto Show. They are eager to stimulate consumer purchasing enthusiasm during the New Year holiday through this year-end auto show, and launch the “first shot” of 2023 to reverse the situation.Of course, if we can’t break through, it’s also a good idea to cheer up a little bit in the endless fog.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.