Introduction

Introduction

Stripped of its flashy facade, perhaps the Chengdu Auto Show has always been like this.

Looking back on the Beijing Auto Show four months ago, what left a deep impression on us, besides the traffic generated by companies like Lei Jun and Zhou Hongyi, was whether there were any significant models that lingered in our memories. To be honest, it's not immediately clear.

Now, as the Chengdu Auto Show is underway, regardless of how many automakers choose not to attend or only use it as a sales platform, as insiders, we still want to know: what is the true significance of an auto show for automakers? And for consumers, can participating in an auto show offer insights into the industry's future trends?

Indeed, against the backdrop of rapidly changing markets, automakers have long stopped relying solely on auto shows to showcase their strengths. Often, to avoid information overload, new car launches and technology showcases are deliberately scheduled before the show. But even so, has the Chengdu Auto Show, a bellwether of the southwestern market, truly devolved into a regional trade fair?

In my opinion, the answer is debatable.

Perhaps, after years of market refinement, auto shows are still flooded with influencers chasing traffic. Live streams showcasing cars and models, or attempting to capitalize on unexpected events, can be found at every booth. But overall, the attitude displayed at the Chengdu Auto Show is distinct from that of the Beijing Auto Show in April.

Even though the lineup of new cars and industry leaders in attendance may be smaller, the underlying competition among automakers is very real. After all, in today's price war, who wants to back down at a venue where brands converge?

New energy is the future, but reality is more tangible

Chengdu has always been a hub for new energy vehicle sales in China. Knowing this, it's safe to assume that the concentration of electric vehicles at the auto show will be high. But more importantly, I want to discuss the level of participation from major brands. Given the vast capacity of the southwestern market, no automaker would willingly forgo this opportunity to showcase their products.

One might expect foreign brands, weaker in this period of collective rise of Chinese automakers determined to drive them out of the market, to withdraw voluntarily. Yet, based on first-half performance, there's little new to showcase from Toyota, Honda, Volkswagen, and GM.

However, a closer look reveals that their presence is more than just a token gesture.

Volkswagen (Anhui)'s first live vehicle debut was held here, with the Golden Logo ID.BUZZ making a prominent appearance between Dongfeng and Aion booths, showcasing the brand's determination to make a big splash. After collaborating with Momenta, GAC Toyota brought its intelligent driving-focused Platinum Wisdom 3X to Chengdu. Hyundai also chose Chengdu for the launch of two significant new models: the all-new Santa Fe and the brand-elevating Ioniq 5N.

More surprisingly, brands like Chevrolet, Citroen, Peugeot, and Jetta, which often skip auto shows together, were all present this time. While BBA flexed their muscles with oversized booths, second-tier luxury brands like Jaguar, Lincoln, and Genesis were also in attendance.

Before the show, we knew that most of these brands wouldn't hold press conferences or unveil new products. The reason, as stated in the title, is that "an auto show should look like an auto show." Is it lowbrow to simply sell cars? Not at all. Especially in Chengdu, a major consumer hub in the southwestern market.

Data shows that in the first seven months of 2024, Chengdu stood out among Chinese cities in terms of auto sales, surpassing Shanghai and Beijing with 332,000 units sold to rank first.

In other words, despite occasional classification of the Chengdu Auto Show as a regional trade fair, automakers with even a modest budget wouldn't miss the opportunity to boost sales at this event.

Without the usual celebrity buzz, the Chengdu Auto Show's booths may seem monotonous after the initial flurry of activity. Sales consultants fill every booth, reminding passersby that buying a new car is the ultimate goal here.

Perhaps for media outlets tasked with covering the event, this down-to-earth atmosphere falls short of their ideal auto show ambiance. Lack of newsworthy moments might make the show seem unworthy of extended coverage. Yet, judged by brand participation and booth size, the Chengdu Auto Show still embodies the essence of a major auto show.

"Pragmatism" is the overarching theme of this auto show, genuinely contributing to the prosperity of Chengdu's automotive market.

Selling cars isn't easy; why bother with glitz and glamour?

As expected, after a brief period of buzz, the Chengdu Auto Show shifted into full sales mode on Media Day. Even though most sales consultants know we're not potential customers, they adopt a professional demeanor to ensure no visitor leaves without considering a purchase.

Recall the Beijing Auto Show earlier this year. With many brands absent, most people's memories are dominated by corporate bigwigs making the rounds. Names like Lei Jun, Li Xiang, Zhou Hongyi, Wei Jianjun, and Li Bin captured headlines and overshadowed new car launches.

Today, while the Chengdu Auto Show lacks the buzz and terminal market discussion of its larger counterparts, it fulfills its core purpose: selling cars. With numerous brands in attendance, the Chengdu Auto Show is a success by this metric.

Compared to the same period last year, data shows that the Chengdu International Auto Show garnered over 2.2 billion topic views, attracted 902,000 visitors, and generated 35,028 orders worth 6.087 billion yuan. With Chengdu's auto retail sales exceeding 153.23 billion yuan in 2023, the show accounted for roughly 4% of annual sales. The significance of these figures is self-evident.

Given the decline in press conferences, fewer novelty vehicles are expected at this year's show. Nonetheless, the Chengdu Auto Show has a clear self-awareness in defining its role.

Moreover, to further stimulate consumer demand, Chengdu recently announced a third round of auto consumption incentives worth 100 million yuan. From August 30 to September 20, consumers who purchase new passenger vehicles from participating dealerships and successfully submit their applications will receive up to 8,000 yuan for new energy vehicles and 7,000 yuan for conventional fuel vehicles.

In light of these developments, reviewing the Chengdu Auto Show reveals its essential role in driving the southwestern automotive market.

For automakers, auto shows are about generating returns on investment. To dismiss this year's Chengdu Auto Show as meaningless would be misguided.

Amid fierce competition in today's automotive market, few dare to miss out on the Chengdu Auto Show's visibility.

Generating traffic and buzz has never been the mission of the Chengdu Auto Show. In the past, some saw it on par with Beijing, Shanghai, and Guangzhou auto shows due to robust market growth and consumer enthusiasm. Now, with emotion-driven demand waning, the Chengdu Auto Show focuses on fulfilling its role as a regional event.