Source: Yuan Auto

At the 20th Shanghai Auto Show two years ago, the scene was abuzz with innovations. BYD Seagull models priced from 70,000 yuan, high-end NIO U8 models priced in the millions, and new models like Xiaopeng G6, the second-generation NIO ES6, and SAIC IM Motors LS7, which introduced lidar to the mass market, were on display. That year's event left a strong impression on over 13,000 domestic and international media outlets and nearly a million visitors, showcasing the rise of domestic brands in the new energy vehicle (NEV) sector.

In contrast, German, Japanese, and American brands struggled to maintain their footing, relying heavily on past achievements. Joint venture automakers were present in major media reports but had ceded the limelight.

Now, in 2025, the 21st Shanghai Auto Show has arrived. Domestic brands remain robust, with high-end models like the extended-range NIO U8, Huawei HarmonyOS Intelligent Driving Supreme S800, and Zeekr 9X priced in the millions, signaling their ambition to penetrate high-profit markets. Meanwhile, joint ventures have started to reclaim the popular NEV market with strategic products, well-crafted market strategies, and the support of domestic partners.

At this pivotal moment, joint ventures benefit from favorable timing. Relevant authorities have begun to address the industry's chaotic promotion of intelligent driving technologies, and a new national battery standard is set to be implemented next year. Under these new policies, domestic brands, traditionally stronger in intelligent driving and battery technologies, have been more significantly impacted than joint ventures.

01

High-Level Intelligent Driving "Retreats"

Prior to this Shanghai Auto Show, industry rumors suggested that authorities planned to standardize automakers' promotional marketing of intelligent driving technologies, including misleading terms like autonomous driving, high-level intelligent driving, and L2++ intelligent driving. In the future, these terms will be replaced by specified, unified terminology.

Yuan Auto's observations at multiple press conferences revealed that most automakers have replaced the previously diverse naming of intelligent driving products with "intelligent assisted driving," with some even omitting "intelligent" and retaining only "assisted driving."

According to the well-known self-media account @42 Number garage, Hong Wei, the market general manager of Changan Deep Blue S09, disclosed that current Ministry of Industry and Information Technology regulations for assisted driving naming require the mention of "assisted driving," with "intelligent" optionally added before it.

While tightening the promotional marketing of intelligent driving, on April 23, an industry insider informed Yuan Auto that authorities have also raised the approval threshold for OTA updates of intelligent assisted driving functions. For instance, small-scale internal test OTA updates, common among new force automakers, are now restricted.

"Now, even if an (intelligent driving) new model updates and iterates rapidly, it still needs to undergo a complete set of closed-loop road tests before being OTA-updated to users. Additionally, cloud-based model tests must adhere to a series of requirements," the source said. Under this new regulatory scrutiny, most automakers' intelligent assisted driving OTA plans have been delayed, disrupting some automakers' original plans to drive market enthusiasm and even sales with new intelligent driving models.

However, there are exceptions.

"I also drive (the AITO M9), and I use assisted driving every day. It parks itself and drives itself. From the starting point to the destination, I just keep my hand on the steering wheel, and it drives itself."

On the first day of the Shanghai Auto Show, Yu Chengdong, Executive Director of Huawei and Chairman of the Terminal BG, joined AITO M9 celebrity owners Ma Dong and Huang Bo at Huawei's HarmonyOS Intelligent Driving booth to discuss intelligent driving. Despite their restrained language, their presence was undoubtedly the largest at the event.

It's worth noting that on the eve of the Shanghai Auto Show, Huawei released its Kunlun Intelligent Driving ADS 4 solution, available in four configurations, with the top-tier ADS Ultra flagship version supporting highway L3. If successfully implemented, Huawei Kunlun Intelligent Driving ADS 4 will become China's first conditionally autonomous driving commercial solution.

Perhaps this is the confidence behind Yu Chengdong's unwavering "big mouth" style.

Overall, due to regulatory changes, domestic brands, previously dominant in intelligent driving, appeared unusually subdued at this Shanghai Auto Show. In contrast, joint venture brands have begun to see their models, in collaboration with domestic intelligent driving solution providers like SAIC GM, Beijing Benz, and Momenta, come to fruition. Although there are still differences in assisted driving capabilities, under this compromise, joint venture brands' disadvantage in intelligent driving compared to domestic brands has been mitigated to a certain extent.

02

Joint Ventures That Listen and Act

SAIC GM Buick launched the plug-in hybrid MPV GL8 Lushang, priced from 249,900 yuan;

Beijing Benz introduced the long-wheelbase CLA, competitive in both charging speed and driving range;

SAIC Volkswagen showcased the ID.ERA concept car, its first extended-range hybrid model...

If listening is a key feature and secret weapon of domestic brands, joint ventures can also be considered successful in learning from them at this auto show. Taking the above three models as examples, joint ventures have begun to set aside the "idol burden" of multinational automakers and closely follow the needs of the Chinese market in their vehicle manufacturing, from pricing to technology.

Joint ventures that listen and integrate their deep automotive manufacturing expertise may become the new recipe for market success.

Taking the Beijing Benz long-wheelbase CLA as an example, this pure electric vehicle's ultra-long range is not only attributed to its large 85kWh battery but also to its two-speed transmission. By shifting into second gear during high-speed cruising, the CLA significantly reduces power consumption.

Using a transmission to address the long-standing issue of high power consumption in long-range pure electric vehicles has so far only been adopted by Porsche Taycan, Audi e-tron GT, and Mercedes-Benz electric "G-Class," and is relatively rare among domestic brands. At the same time, unlike these predecessors, the CLA is expected to have an affordable price.

In addition to the qualitative shift in individual products' "hit" problem-solving approach, some joint venture brands' overall market strategies have also begun to change, such as SAIC GM.

At this Shanghai Auto Show, in addition to launching the highly competitive new energy MPV Buick GL8 Lushang, SAIC GM also unveiled the "Xiaoyao" super fusion architecture. This architecture enables SAIC GM to rapidly launch new models with three new energy power forms: pure electric, extended range, and plug-in hybrid. The models span sedans, MPVs, and SUVs, with drive forms including front-wheel drive, rear-wheel drive, and four-wheel drive.

"SAIC GM now represents China's core strength and is deeply rooted in China. Many products released during the Ultium 1.0 era did not resonate with customers, but this does not mean that SAIC GM lacks the ability to realize new electrification and intelligence," said Lu Xiao, General Manager of SAIC GM, at a media communication meeting on April 22.

According to data from a mainstream social media platform's brand popularity chart, from 9:00 am on April 23 when the 21st Shanghai Auto Show opened to 6:00 pm when it closed, Volkswagen and Benz firmly occupied the top 3 positions, alternately surpassing popular domestic brands like Huawei HarmonyOS Intelligent Driving and Zeekr to dominate the platform's hottest automotive brands. Expanding the view to the top 10, one can also see brands such as BMW, Mazda, and Audi.

Starting from this Shanghai Auto Show, joint venture brands have begun to regain ground in the NEV race.

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