Auto Shanghai: Autonomous driving on the test bench.

Auto Shanghai 2025 has opened its doors. It is an anniversary: The trade fair has been around for 40 years. Since Wednesday, the majority of manufacturers have been presenting themselves in a much less funky and extravagant way than last year in Beijing. Some have even presented their new models a few days before the trade fair. Others have postponed eagerly awaited premieres at short notice.

There is certainly no lull behind the quieter mood. The Chinese market grew by 36% in the first quarter of 2025 compared to the same period last year. The number of electric vehicles sold reached almost one million in March 2025 – a record result.

However, with regard to the former flagship technology of automated and autonomous driving , the mood is subdued. The driving systems were already being touted as China's next big thing after e-mobility. However, the recent fatal accident involving three women driving a Xiaomi SU7 is causing great concern. The tragedy has sparked widespread discussion in China and prompted the government in Beijing to act quickly.

Until now, autonomous driving was only loosely regulated and, as is often the case in China, restrictions followed testing in practice. From now on, China's car manufacturers are obliged to clearly label their Level 2 driving systems as such and not to advertise them with false promises. The last few days have therefore been stressful for many exhibitors: Advertising materials for the trade fair had to be revised at the last minute.

This is because many manufacturers use vague terms when advertising their technologies. This includes, for example, the subtleties of advanced driver assistance systems (ADAS). Many drivers are not aware of the difference between Level 2 (assisted driving) and Level 3 (semi-automated driving). Level 3 is currently being tested in China, but is not yet on the market. Behind the tempting suggestions lies the fierce, cut-throat competition in the car industry, with its more than 100 manufacturers: Everyone wants to appear more attractive and more advanced than the competition.

There are also technical loopholes in various driving systems. According to several people in the industry, vehicles of some manufacturers can let go of the steering wheel for several minutes while driving. Some vehicles only react much later with a warning tone or a controlled braking maneuver. This is also confirmed by Mark Rainford, automotive journalist for Inside China Auto, who extensively tests many new models on his YouTube channel. One of the models he tested did not even give a warning for ten minutes when he was driving with his hands off the road, says Rainford.

A more comprehensive set of regulations is likely to follow; the issue is currently being intensively evaluated in Beijing. Car manufacturers with Level 2 systems must submit extensive information to the authorities by Friday. For German brands, the new caution is possibly an opportunity to score points with their core competencies. Because even if the regulatory frenzy is often decried in this country, safety is a top priority for manufacturers such as Mercedes-Benz, Volkswagen and BMW. Their cars start ringing after a few seconds if your hands are not on the steering wheel.

Away from the debates about driving systems, so-called New Energy Vehicles (NEVs) are once again clearly dominating the trade fair. These also include hybrid models and range extender vehicles, a trend that has now become the norm. SUVs dominate the stands, which is also not surprising. The models are quite diverse. Among them are very luxurious, awe-inspiring behemoths that are targeting established brands in the premium segment. Zeekr has its first hybrid with it, the SUV 9X, which has already been given the nickname Rolls-Royce from Hangzhou. However, it is available for the price of a BMW X5. BYD's luxury brand Yangwang is presenting the U8L, which is based on the luxury edition of the U8, has a particularly long wheelbase, 1180 hp from four electric motors, and six seats.

The often luxuriously equipped minivans, in which you can be chauffeured comfortably through city traffic, were also a trend last year. This year, so-called MPVs are much less common. In a new version, the angular MPV Li Mega is once again one of the highlights in the new Home version. The vehicle is already equipped with all the necessary sensors and a Lidar for Level 4 autonomous driving, customers just need to be patient. Among the small cars, Firefly, the subsidiary brand of Nio, which is intended to pave the way for young customers to join the brand family, once again stood out. However, some expected premieres failed to materialize: Among others, the Tesla Model Y-hunter Xiaomi YU7, the SUV Xpeng G7, and the second all-electric model from Li Auto, the Li i8, were not present.