China's importance as world's largest car market shows little tariff stress at Shanghai auto show

Despite a complex global landscape marked by geopolitical uncertainties and the US trade war, the ongoing Auto Shanghai 2025 show is demonstrating an industry determination to get on with business.

Embracing participants from around the world, the show exemplifies both China's push to export more of its domestic vehicles and a resolve by foreign automakers and parts suppliers to penetrate deeper into the Chinese market.

Attention is centered at this year's exhibition in the booming electric-car market, both at home and abroad.

Show participant Nicolas Nasarenko, a marketing official from Russia's Avtoliga, a vehicle distributor in the city of Nizhny Novgorod, expressed considerable interest in the advanced autonomous and intelligent features showcased in Chinese domestic vehicles.

Russia has emerged as a pivotal export market for the Chinese automotive industry. Chinese brands now command about a 60 percent market share, according to Yandex, Russia's leading Internet and technology conglomerate.

Expanding market

Globally, Chinese car exports have surpassed 5 million, with a fifth heading to Russia.

Yandex Auto, a first-time exhibitor at Auto Shanghai, offers a suite of in-car services, including navigation, weather updates and entertainment.

Zhou Tian, senior business development manager at Yandex Auto, highlighted the potential for further collaboration.

"Around 47 percent of Russians are open to considering a Chinese car for their next purchase," he said. "Yandex's established popularity can provide Chinese companies with a competitive edge, enhancing their appeal in Russia and Central Asia."

In Shanghai, the company showcased Alisa, its AI-powered virtual assistant integrated into Yandex Auto. With 70 million monthly active users on smart devices now, Alisa is tailored for Russian-speaking markets, offering localized functionalities such as remotely controlling home appliances. This integration promises to enhance the user experience for Chinese vehicles sold in Russia.

Beyond Russia, South America countries like Uruguay, are also gaining traction as a target market.

"BYD has consistently ranked among the top three best-selling brands in Uruguay over the past three months," noted Santiago Guelfi, a local distributor who has been importing BYD vehicles from China since 2008.

His presence at the Shanghai show underscores the growing interest in Chinese new energy vehicles in the region.

"While EVs haven't yet surpassed gasoline cars in Uruguay, their presence is steadily increasing," he added.

Electric vehicles, alongside lithium-ion batteries and solar panels, have been identified as China's three export pillars, poised to be major drivers of the nation's export growth. In 2023, the combined export value of these sectors reached nearly US$143 billion, up from US$33 billion in 2019.

Meanwhile, China-brand vehicle sales in Europe in the first quarter jumped 78 percent from a year earlier, according to China Industrial Securities, citing industry sources.

US commitment despite trade tensions

Despite ongoing tariff tensions, several US-based companies are actively participating in Auto Shanghai, announcing new partnerships and expansion strategies within the Chinese market.

Dolby Laboratories, a first-time exhibitor, showcased its advanced in-car entertainment solutions. Demonstrations within a Li Auto vehicle highlighted the seamless integration of popular localized streaming services, including QQ Music, NetEase Cloud Music, Ximalaya podcasts, iQiyi and Tencent video movies, and even user-generated content from Bilibili.

"Chinese consumers place a high value on entertainment quality," said Javier Foncillas, vice president for commercial partnerships and global sales at Dolby Laboratories. "Dolby is committed to redefining in-car entertainment through deeper collaborations with partners to offer a diverse range of entertainment options to car owners."

Technology giant Intel, which also attended the auto show, announced partnerships with Chinese firms Black Sesame and Modelbest to jointly tackle technical challenges in intelligent vehicle ecosystems.

Nexteer Automotive, a US-based provider of motion-control systems, debuted its electro-mechanical braking system in Shanghai. This new technology offers a modular, high-precision braking solution.

Nexteer currently supplies to over 60 customers globally, including major international brands like BMW, Ford and GM, alongside a growing number of leading Chinese automakers such as BYD, Xiaomi, ChangAn, Li Auto, Chery, Great Wall, Geely and Xpeng.

Robin Milavec, Nexteer's president, stressed the company's position as a "trusted partner domestically" and its commitment to expanding Chinese clients by adapting to market demands and expediting deliveries.

Tenneco, a supplier of electronic and passive suspension systems and components, presented its semi-active suspension technology at the Shanghai show. This technology enhances driving control and safety, a critical aspect in the domestic market, where smart driving safety is heavily emphasized.

Tenneco has established a production facility in the Jiangsu city of Changzhou.

Auto Shanghai 2025 will run through May 2.

(Tan Weiyun also contributed to this story.)