Chinese buyers rewriting domestic auto market

With over 50 percent of China's new car sales now electric and hybrid models growing at double-digit rates, the 2025 Auto Shanghai not only offers a look at the future of mobility, but also captures a shift in what Chinese consumers demand from their vehicles.

Performance still matters, but it is no longer the sole differentiator. Today's buyers are weighing intelligent driving features, personalized in-car experiences, and brand identity alongside speed, battery life, and range. From six-seater EVs tailored to family life to pink-furred show cars designed to attract women drivers, the definition of "value" in China's auto market is being rewritten.

Intelligent performance, not just power

China's electric vehicle sector has entered what many call its "second half" – no longer driven by early adoption incentives, but by practical, data-driven upgrades. Consumers want smart driving to be seamless, not experimental. This year, 65 percent of all new EV models at the show featured Level 2 or higher autonomous driving systems.

The BYD brand is showcasing its latest "Sky Eye" system (DiPilot), while Huawei's QianKun Autonomous Driving Solution 3.0 promises full-scenario intelligent navigation. Xiaomi's SU7 Ultra boasts 0–100kph acceleration in under two seconds, but what draws equal attention is its compatibility with domestic smart ecosystems and a cockpit interface optimized for Chinese apps and voice commands.

What's new in 2025 is the deeper integration of AI, particularly large language models, into the in-car experience. BMW is co-developing a conversational cockpit system with Alibaba, while NIO's flagship ET9 not only comes with a 900V high-voltage platform for performance, but also features anti-nausea technology and adaptive comfort systems.

Huawei, meanwhile, is expanding its influence beyond driver assistance. Through its Huawei HiCar platform, the tech giant is building a "human-car-home" intelligent ecosystem, turning vehicles into extensions of users' mobile lives. HiCar allows smartphones to serve as the central hub of an interconnected environment, enabling navigation, communication, and personalized services to flow naturally between car and phone.

Performance, in this context, is being redefined. It now includes how a car sees, thinks, and responds as much as how it moves.

"Over the past decade, China has made remarkable progress in transforming its auto sector. It has effectively become a testing ground for the global shift toward electrification and smart mobility," said Guan Mingyu, senior partner at McKinsey & Company and head of McKinsey's Automotive Practice in China.

"These rapid changes are continuously shaping consumer preferences in China, and in turn, those preferences are pushing the industry to further embrace EVs and smart technologies. This mutual reinforcement is not only defining the future of China's auto market, but also gradually influencing the global industry, from technology development and business models to the competitive landscape over the next 5 to 10 years," Guan said.

Diversification of value

As China's EV market matures, carmakers are no longer designing for a monolithic buyer. Instead, they're targeting increasingly segmented user groups, young, urban, female, family-oriented, with tailored offerings that blend emotional appeal with functional logic.

At the 2025 Shanghai Auto Show, this shift is easy to spot.

IM Motors draws attention with a display SUV LS6 covered in soft pink fuzz and rabbit ears, explicitly designed to attract female buyers.

"One of our major customer groups is female drivers. This pink look isn't just cute; it's a design choice based on real preferences," said IM's Zhou Lingyuan. "We've tailored the exterior and features to make the car more approachable, functional, and fun for them."

The car also features assisted parking systems, customizable light-permeable rooftops for sun protection, and smart voice controls – features that resonate with a demographic often overlooked by traditional auto marketing.

For Gen Z buyers, value is increasingly defined by design, tech, and affordability in equal measure. Lynk & Co's Z20 show car, for instance, features a limited-edition "capybara wrap" – a cute, cartoonish car skin that draws young crowds to its booth.

"It looks great, drives well, and hits 0 to 100kph in just 5.3 seconds," said Yang Yuling, a staff member at the brand's Chengdu base. "And even the top trim is priced under 150,000 yuan (US$20,566). It's within reach for them."

For family users, multi-row, large-battery SUVs dominate the halls. Models such as the Li Auto i8 and the new ONVO L90 emphasize long-distance comfort, child-friendly cabin space, and backup power functions for emergencies.

What links these efforts is a consumer mindset that blends form with function: buyers want cars that reflect who they are, but also what they need.

Social to showroom

In China's highly digitized consumer landscape, car buyers increasingly begin their journey not at the dealership, but on platforms such as Xiaohongshu (Red), Douyin, and Bilibili. The decision-making path now starts with short videos, influencer reviews, and aesthetic-driven content, long before a buyer ever steps into a showroom.

This digital-first behavior is reshaping how automakers market their vehicles. Live-streamed test drives, showroom walkthroughs, and "day in the life" vlogs featuring specific car models are becoming central to brand storytelling. Aesthetic appeal, such as color schemes, dashboard interfaces, even personalized sound systems, is often fine-tuned for virality as much as for function.

At this year's Auto Shanghai, the showroom is just as much a content studio. Beyond the traditional press corps, the venue was swarming with livestreamers, KOLs, and influencers, many equipped with professional lighting and audio gear, broadcasting in real time.

In some booths, livestreamers aren't merely promoting the cars; they are closing deals. Dealers and brand reps stand by their side, shouting out specs, highlighting discounts, and guiding viewers through in-app purchase flows.

The livestream audience on Douyin for Bo Ge Talks Cars is firing off questions in real time: "What's the price?" "How big is the trunk?" "Can you show us the back seat?" Bo responds instantly – sitting inside to demonstrate cabin space, opening the rear hatch, panning the camera to the car's rear design.

The 2025 Shanghai Auto Show makes one thing clear: China's car buyers are driving the industry forward – demanding smarter tech, more personal design, and faster, social-powered ways to shop. What starts in China no longer stays in China. These shifts in consumer behavior, product strategy, and retail logic are reshaping not just the domestic market, but the global future of mobility.