Key takeaways from the 2023 Auto Guangzhou
22 Nov 2023|3,512 views
With more than 800 exhibitors represented across two exhibition buildings and 10 halls spanning over 220,000sqm, the Guangzhou International Automobile Exhibition (Auto Guangzhou) is big in every sense of the word.
And I'll be honest, I wasn't quite prepared for the sheer scale of the thing, even though the pre-event press materials clearly indicate that it is "a test of physical strength and endurance".
With just a day to spend there, it is truly impossible to visit every single booth and check out all the vehicles on display. However, there are some important takeaways that can be gleaned from even my brief time here:
The sheer size of the motor show (over 200,000 sqm) is matched only by the outsized proportions of many of the cars there, such as this GWM Tank 700 Hi4-T (right)
1. Size matters
The cars are big. Like, really big. So much so that I regret not opting to bring a wider camera lens. Reflective of where the automotive industry is trending, everything at the motor show feels upsized - certainly the cars on display, but also the booths (just about all of them were double-storeyed), and definitely the crowd too.
The trend towards bigger cars perhaps speaks to the natural evolution of vehicles, as more technology and more safety equipment require more space.
The go-big attitude extends into the interiors as well - more space, and more equipment as well (with big screens, of course)
Ready for an overland adventure but don't have the vehicle for it? Well, this Maxus has got you covered (literally)
And that 'go-big' attitude extends beyond just the physical stature of cars. The new cars on display are all chock full to technology (and screens), and even auxiliary elements feel larger-than-life too (peek the fully overland-ready Maxus).
It is refreshing, then, the occasional pint-sized city car. That almost feels like an anomaly, tucked quietly beside hulking SUVs.
Par for course for any motor show these days, EVs are everywhere - including this Maxus MIFA 7 (right) that will make its way to Singapore in 2024
2. Electrification expected
With any modern motor show, you expect plenty of EVs, and it's no different here at Auto Guangzhou. However, one trend that caught me by slight surprise was the number of plug-in hybrid models being showcased.
While PHEVs may not seem particularly practical in Singapore (yet), it definitely factors into China's New Energy Vehicles push. And in a market where EV development has rapidly accelerated, PHEVs actually serve a complementary function. With more charging infrastructure available to support the already sizeable EV population, PHEVs stand to be able to take advantage of said infrastructure, while also still offering the peace of mind of traditional petrol power.
Plenty of models have also gone the PHEV route, including off-road adventure vehicles as well
It's perhaps little wonder that off-road-focused vehicles from the likes of TANK and POER have adopted new PHEV powertrains - these vehicles retain their go-anywhere capabilities, but also have the augmented capability of emissions-free city driving. No range anxiety, no performance anxiety either.
A booth features a frame-only jeep positioned right next to a scissor-door supercar, because of course it does
3. Prominent dominence
It is impossible to overlook the sheer number of Chinese brands on display. Whether its practical family SUVs, electric sedans, scissor-door supercars and even a frame-only jeep that could well be used as a quick-response military vehicle, Chinese brands dominate the conservation (that's not surprising considering I am in China).
However, zooming outwards, we do have to recognise the growing international presence of the Chinese automotive industry. In Singapore, we already have a few brands (ORA, BYD and Maxus immediately come to mind), and it's entirely possible more will come.
Unsurprisingly, Chinese brands are heavily represented at Auto Guangzhou, but this also demonstrates the growing and increasingly international presence and might of Chinese auto manufacturers
A big part of this, of course, is China's sheer manufacturing might, coupled with its technological advancements. And at least based on the numerous cars I saw in Guangzhou, there should be little doubt on the quality of these cars, either.
Yes, buyers (especially locally) will still have hesitations about these new brands, but there's no denying that they are coming. And they are coming with full force.
GWM has a brand (WEY) that specialises specifically in luxurious people movers (think large MPVs and SUVs)
Or... you could also specialise in what looks like armoured vehicles (its not actually armoured, but it is fully electric)
4. Segment specialisation
One interesting thing about these Chinese brands, though, is the segment specialisation. For example, under the GWM umbrella, you have ORA (compact cars), Haval (SUVs), TANK (premium off-roader), WEY (premium MPV/SUVs) and POER (pickups). Though technology is expectedly shared, each brand specialises in one distinct segment.
This conglomerate-driven brand segmentation (similar across other enterprises as well) is only possible because of the sheer size of the China market. A brand can specialise because even within a niche segment, that's still plenty of volume (and potential profit).
The sheer size and volume of the Chinese market means that manufacturers can even target a model at a specific demographic - the ORA Ballet Cat is being marketed directly at female drivers
It's even possible to take it one step further. In China, the recently introduced ORA Ballet Cat is actually being marketed directly (and seemingly only) at female drivers. Beyond segment-specific brands, we even see model specialisation. That marketing approach will unlikely be exported beyond Chinese borders (an ORA executive highlights that the brand will cater to distinct market requirements and demands), but the fact that it is even possible at all speaks to the sheer market size.
The shocking number of live streamers on the day highlight the changing purchasing patterns of consumers, but more importantly, the sheer and undeniable buying power of the Chinese market
5. Customer choice
Ultimately, Auto Guangzhou is a consumer-driven event. That’' evident from the mind-boggling number of live streamers on site (selling cars on Douyin, yes really), as well as the importance of the price announcement at each press conference.
Auto Guangzhou is probably 10 times the size of our Singapore Motor Show. And with the vast variety of choices on offer, across Chinese brands but also more established manufacturers from Europe, Japan and Korea, customers have plenty to choose from.
The sheer size and variety of the automotive market also breeds competition, which typically has a downward effect on prices. In fact, we were told that cars in China have actually become cheaper in recent years. A recent spate of price cuts from over 40 manufacturers also point to how competitive the market is.
While many of the cars here may never make their way to Singapore, it is still worth paying attention to what the Chinese automotive industry is doing
What does it all mean?
As with many other things, the Chinese automotive market is its own giant. While it may not necessarily have a one-to-one correlation to the broader automotive market (and certainly not our peculiar own one), it would be remiss for us not to pay attention to what's happening there.
The drive toward electrification is obvious enough - not just electric, but also PHEVs. That trend, true not just of Chinese automakers but also evident in the displays of big-name manufacturers like Honda and Toyota, perhaps sheds a light on what the near future could look like.
From my time in Guangzhou, one thing is clear - the future is electrified, and the Chinese are going to have a big role to play in this changing automotive landscape
And that future, hopefully, is predicated on choice. It provides the individual customer with a wide variety of choices capable of suiting each and every particular lifestyle.
Ultimately, the customer benefits. And I'm sure we can all get behind that.
With more than 800 exhibitors represented across two exhibition buildings and 10 halls spanning over 220,000sqm, the Guangzhou International Automobile Exhibition (Auto Guangzhou) is big in every sense of the word.
And I'll be honest, I wasn't quite prepared for the sheer scale of the thing, even though the pre-event press materials clearly indicate that it is "a test of physical strength and endurance".
With just a day to spend there, it is truly impossible to visit every single booth and check out all the vehicles on display. However, there are some important takeaways that can be gleaned from even my brief time here:
The sheer size of the motor show (over 200,000 sqm) is matched only by the outsized proportions of many of the cars there, such as this GWM Tank 700 Hi4-T (right)
1. Size matters
The cars are big. Like, really big. So much so that I regret not opting to bring a wider camera lens. Reflective of where the automotive industry is trending, everything at the motor show feels upsized - certainly the cars on display, but also the booths (just about all of them were double-storeyed), and definitely the crowd too.
The trend towards bigger cars perhaps speaks to the natural evolution of vehicles, as more technology and more safety equipment require more space.
The go-big attitude extends into the interiors as well - more space, and more equipment as well (with big screens, of course)
Ready for an overland adventure but don't have the vehicle for it? Well, this Maxus has got you covered (literally)
And that 'go-big' attitude extends beyond just the physical stature of cars. The new cars on display are all chock full to technology (and screens), and even auxiliary elements feel larger-than-life too (peek the fully overland-ready Maxus).
It is refreshing, then, the occasional pint-sized city car. That almost feels like an anomaly, tucked quietly beside hulking SUVs.
Par for course for any motor show these days, EVs are everywhere - including this Maxus MIFA 7 (right) that will make its way to Singapore in 2024
2. Electrification expected
With any modern motor show, you expect plenty of EVs, and it's no different here at Auto Guangzhou. However, one trend that caught me by slight surprise was the number of plug-in hybrid models being showcased.
While PHEVs may not seem particularly practical in Singapore (yet), it definitely factors into China's New Energy Vehicles push. And in a market where EV development has rapidly accelerated, PHEVs actually serve a complementary function. With more charging infrastructure available to support the already sizeable EV population, PHEVs stand to be able to take advantage of said infrastructure, while also still offering the peace of mind of traditional petrol power.
Plenty of models have also gone the PHEV route, including off-road adventure vehicles as well
It's perhaps little wonder that off-road-focused vehicles from the likes of TANK and POER have adopted new PHEV powertrains - these vehicles retain their go-anywhere capabilities, but also have the augmented capability of emissions-free city driving. No range anxiety, no performance anxiety either.
A booth features a frame-only jeep positioned right next to a scissor-door supercar, because of course it does
3. Prominent dominence
It is impossible to overlook the sheer number of Chinese brands on display. Whether its practical family SUVs, electric sedans, scissor-door supercars and even a frame-only jeep that could well be used as a quick-response military vehicle, Chinese brands dominate the conservation (that's not surprising considering I am in China).
However, zooming outwards, we do have to recognise the growing international presence of the Chinese automotive industry. In Singapore, we already have a few brands (ORA, BYD and Maxus immediately come to mind), and it's entirely possible more will come.
Unsurprisingly, Chinese brands are heavily represented at Auto Guangzhou, but this also demonstrates the growing and increasingly international presence and might of Chinese auto manufacturers
A big part of this, of course, is China's sheer manufacturing might, coupled with its technological advancements. And at least based on the numerous cars I saw in Guangzhou, there should be little doubt on the quality of these cars, either.
Yes, buyers (especially locally) will still have hesitations about these new brands, but there's no denying that they are coming. And they are coming with full force.
GWM has a brand (WEY) that specialises specifically in luxurious people movers (think large MPVs and SUVs)
Or... you could also specialise in what looks like armoured vehicles (its not actually armoured, but it is fully electric)
4. Segment specialisation
One interesting thing about these Chinese brands, though, is the segment specialisation. For example, under the GWM umbrella, you have ORA (compact cars), Haval (SUVs), TANK (premium off-roader), WEY (premium MPV/SUVs) and POER (pickups). Though technology is expectedly shared, each brand specialises in one distinct segment.
This conglomerate-driven brand segmentation (similar across other enterprises as well) is only possible because of the sheer size of the China market. A brand can specialise because even within a niche segment, that's still plenty of volume (and potential profit).
The sheer size and volume of the Chinese market means that manufacturers can even target a model at a specific demographic - the ORA Ballet Cat is being marketed directly at female drivers
It's even possible to take it one step further. In China, the recently introduced ORA Ballet Cat is actually being marketed directly (and seemingly only) at female drivers. Beyond segment-specific brands, we even see model specialisation. That marketing approach will unlikely be exported beyond Chinese borders (an ORA executive highlights that the brand will cater to distinct market requirements and demands), but the fact that it is even possible at all speaks to the sheer market size.
The shocking number of live streamers on the day highlight the changing purchasing patterns of consumers, but more importantly, the sheer and undeniable buying power of the Chinese market
5. Customer choice
Ultimately, Auto Guangzhou is a consumer-driven event. That’' evident from the mind-boggling number of live streamers on site (selling cars on Douyin, yes really), as well as the importance of the price announcement at each press conference.
Auto Guangzhou is probably 10 times the size of our Singapore Motor Show. And with the vast variety of choices on offer, across Chinese brands but also more established manufacturers from Europe, Japan and Korea, customers have plenty to choose from.
The sheer size and variety of the automotive market also breeds competition, which typically has a downward effect on prices. In fact, we were told that cars in China have actually become cheaper in recent years. A recent spate of price cuts from over 40 manufacturers also point to how competitive the market is.
While many of the cars here may never make their way to Singapore, it is still worth paying attention to what the Chinese automotive industry is doing
What does it all mean?
As with many other things, the Chinese automotive market is its own giant. While it may not necessarily have a one-to-one correlation to the broader automotive market (and certainly not our peculiar own one), it would be remiss for us not to pay attention to what's happening there.
The drive toward electrification is obvious enough - not just electric, but also PHEVs. That trend, true not just of Chinese automakers but also evident in the displays of big-name manufacturers like Honda and Toyota, perhaps sheds a light on what the near future could look like.
From my time in Guangzhou, one thing is clear - the future is electrified, and the Chinese are going to have a big role to play in this changing automotive landscape
And that future, hopefully, is predicated on choice. It provides the individual customer with a wide variety of choices capable of suiting each and every particular lifestyle.
Ultimately, the customer benefits. And I'm sure we can all get behind that.
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