China’s Autonomous Driving Ambitions Unveiled at the World’s Biggest Car Show
At the world’s biggest car show, which opened Friday in Beijing, there were hundreds of manufacturers, more than 1,000 vehicles, hundreds of thousands of enthusiasts – and almost no one behind the wheel.
Chinese Automakers Lead the Electric and Autonomous Charge
Chinese automakers have cornered the domestic electric vehicle market and are increasingly visible on the global stage. They are now turning their attention to what they are betting is the future of mobility: autonomous driving.
At the Beijing Auto Show, a massive industry event spanning 380,000 square meters on the outskirts of the capital, the country’s automakers showcased a range of intelligent driving technologies.
Investments in Intelligent Driving Technologies
In China’s unforgiving domestic market, nearly every major automaker is investing heavily in the software and computing power needed to make “hands-free” driving a reality as they compete to offer additional benefits and find new ways to generate revenue.
And Huawei, the telecommunications group, revealed this week that it would invest up to 80 billion yuan (£8.7 billion) over the next five years to develop its autonomous driving software and computing power.
“The fact that almost every automaker has a version of intelligent driving makes it different from almost every market in the world,” said Tu Le, managing director of Sino Auto Insights, a consultancy.
Le said the Chinese market was so competitive that simply selling passenger vehicles domestically was no longer a viable way for Chinese companies to make money. Additional benefits, such as AI-based software rentals, are needed to increase revenue.
Innovative AI Applications in Vehicles
Electric vehicle maker Xpeng said its latest AI model allows drivers to give commands to the car – such as “park near the mall entrance” – rather than a specific location on a map.
An AI-powered operating system from Xiaomi, a device and phone maker, allows drivers to make restaurant reservations, write notes while driving and place coffee orders. It can also detect when drivers appear stressed or agitated and adjust lighting and music for when they arrive home.
Hyundai’s Ioniq V electric vehicle on display in Beijing. Photograph: Maxim Shemetov/Reuters
Challenges and Opportunities in the Domestic Market
Domestic car sales in China have fallen sharply in recent months. The number of passenger vehicles sold in China fell 17% in the first three months of this year as the government phased out a subsidy program.
BYD, the leader in China’s electric vehicle industry and a company considered an industry bellwether, reported seven consecutive months of declining sales.
Chinese exports increased by more than 60% in the first quarter.
Expansion into Overseas Markets
China’s largest car exporter, Chery, has recently set its sights on the UK market. Since its launch in the UK in August 2025, it has become one of the fastest growing car brands in the country, with 13,500 cars sold between September and March.
On Friday, the company announced a target of 10 million global annual sales by 2030, up from 5 million in 2025. Farrell Hsu, Chery’s UK country manager, said: “This exceptional growth underlines Chery UK’s position as a key contributor to the company’s overall growth through 2030.”
The focus on overseas sales was evident at the show when carmaker Geely announced plans to roll out thousands of driverless taxis globally next year through its ride-hailing arm, Caocao. Chinese companies are seeking to compete with American robot taxi companies such as Waymo, which have proven successful in San Francisco and Los Angeles.
Robotaxis have already been deployed in several Chinese cities, but their large-scale adoption has been limited by regulatory as well as technical barriers.
Regulatory Challenges and Future Prospects
Last week, the government concluded a public consultation on a new set of safety standards for self-driving cars. There are no national guidelines and Beijing has been cautious about allowing unfettered access to driverless cars on its roads.
Last month, several Baidu Apollo Go robo-taxis got stuck in the middle of the road in Wuhan, leaving passengers stranded for hours.
A Cadillac electric vehicle at the Beijing International Auto Show on April 24. Photograph: Kevin Frayer/Getty
Nevertheless, Chinese robo-taxis are expected on the streets of London this year as Lyft and Uber announced partnerships with Baidu to use its autonomous driving software.
Faced with tariffs in large markets, such as the United States and the European Union, Chinese automakers are focusing on smaller markets, such as the United Kingdom and Canada, to move their units.
An industry professional said the UK was tapping Chinese companies because it was seen as “culturally agnostic” about allowing Chinese electric vehicles on its roads – while other countries have blocked them on national security grounds.
Chinese companies are expected to account for one in ten new cars sold in Britain in 2025.
In February, Chery launched its fourth brand in the UK. Hsu said the company was “actively considering options for production and R&D facilities in the UK”.
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