Global auto giants double down on China at record-breaking Auto Shanghai

Tariffs may be rising, but so is the global auto industry's appetite for China. At the 2025 Auto Shanghai – the largest in its history – nearly 1,000 companies from 26 countries and regions rolled out their latest tech and partnerships, signaling one clear message: the world's biggest electric vehicle market is too important to ignore, trade war or not.

From cutting-edge driver-assistance systems by Japan's Denso to AI-powered in-car projection tech by Shenzhen's Appotronics, the show became a stage not just for showcasing innovation, but for reaffirming the global industry's commitment to cooperation – even as geopolitical tensions continue to cast long shadows.

Denso's signature offerings have traditionally centered on thermal management, powertrain, and electrification systems, which account for the majority of its revenue. Speaking at a press conference on April 24, Eiji Inoue, chairman and general manager of Denso (China), said that "combined driver assistance systems" – specifically those meeting L2++ standards – will be a key growth driver in the Chinese market.

The company unveiled several advanced driver-assistance technologies tailored for China, including a next-generation millimeter-wave radar with a detection range of 290 meters and a ±63-degree field of view. Also on display was the SPC3 image sensor, boasting 8 million pixels, a 128-degree wide-angle lens, and 5 TOPs of processing power – all designed to meet China's NCAP five-star safety rating requirements.

According to the 2024 Global Automotive Supply Chain Competitiveness White Paper by China Automotive News and Roland Berger, Denso ranked second globally in 2023 supply chain revenue, totaling 357.5 billion yuan ($49.4 billion). The company operates 34 affiliated entities in China and employs around 15,000 workers.

Also drawing attention at the auto show was Shenzhen-based Appotronics, a global leader in laser optical technologies. The company unveiled its "Lingjing" smart in-car optical system, which leverages AI to control projected content across a vehicle's interior, enhancing driving safety and comfort. Appotronics has already secured 13 project wins for automotive applications, including cinema-grade in-car displays, laser projection headlights, and lamp modules.

While the company's US market plans have stalled due to trade barriers, Appotronics founder and CEO Li Yi said the firm continues to attract interest from other global automakers. He revealed that new overseas manufacturing invitations have been extended during the show.

"The real barrier isn't tariffs – it's whether we can lead with innovation," Li told Jiemian News. "China's core technologies and key components are indispensable to the global automotive supply chain."

As China continues its rapid ascent in the global auto industry, even traditional competitors are embracing collaboration. US tariffs have impacted the flow of goods, but European manufacturers are pushing back.

Ola Källenius, chairman of Mercedes-Benz Group AG, urged the European Union to find a "fair solution" that ensures a level playing field for Chinese-made EVs in Europe. Audi CEO Gernot Döllner criticized the US government's use of retaliatory tariffs, calling them counterproductive.

"Tariffs are not the answer," Döllner said. "They stifle innovation and create artificial competition. We've been manufacturing in China for more than 30 years, and we believe other solutions must be explored."

Though the US accounted for less than 2 percent of China's 6.4 million total vehicle exports in 2024, it remained a significant market for Chinese auto parts, which reached 99.8 billion yuan in exports – 15 percent of total component exports.

Li Yi predicts a turning point may be near: "Given the mutual dependency, the US-China tariff war could soon see a U-turn."