Motor event offers key market outlook

The 2026 Chengdu Motor Show attracts 120 major domestic and international automakers to showcase about 1,600 vehicles from Aug 21 to 30. CHINA DAILY

Around 120 major domestic and international automakers are showcasing about 1,600 vehicles at the Chengdu Motor Show, highlighting the latest developments in electrification and intelligent technologies.

The 10-day event, which kicked off on Friday, is the first major A-level auto show in China in the second half of the year and an important indicator of the market outlook for the months ahead.

"A wide range of debut models across different segments is displayed, giving visitors and consumers a clear picture of the latest industry developments and market trends," said Liu Guoliang, general manager of Hannover Milano Fairs Shanghai, one of the event's organizers.

The show comes as China's auto market undergoes a profound structural shift.

Passenger vehicle sales fell 24.3 percent year-on-year to 8.29 million units in the first half of 2026.

While sales of traditional fuel-powered passenger vehicles dropped 31.9 percent year-on-year to 3.69 million units, new energy vehicle sales rose 7.3 percent during the same period, with their market share continuing to expand.

"China's auto market is experiencing an interplay of ice and fire," Liu said, referring to the contraction of the overall market and the accelerating development of electrified smart vehicles.

The changing market is also pushing automakers to compete less on price and more on technology, product value and brand differentiation.

The Chengdu show provides a snapshot of the growing technological strength of Chinese automakers.

BYD has brought together its Dynasty and Ocean series as well as Denza, Fangchengbao and Yangwang, showcasing fast-charging and advanced driver-assistance technologies.

Chery Group is displaying 38 models from all five of its brands, while Great Wall Motor, Geely Galaxy, Hongqi, BAIC, Deepal, Voyah and other Chinese brands are expanding their new energy and intelligent vehicle portfolios.

Wang Xia, president of the automotive sub-council at the China Council for the Promotion of International Trade, said the industry's competitiveness should not be judged solely by short-term sales.

"Sales are a fast variable," Wang said, while technology, brands, partnerships and industrial ecosystems are "slow variables" that more fundamentally determine competitiveness.

China accounted for 35.6 percent of global automobile patent publications over the past decade, according to figures cited by Wang. Chinese companies also occupied 17 positions on the 2026 global top 100 automotive suppliers list.

"China used to exchange its market for technology; today, China is using technology to compete in the world," Wang said.

The transformation is increasingly visible overseas. China exported 5.1 million vehicles in the first half of 2026, up 65.3 percent year-on-year, while new energy vehicle exports more than doubled to 2.36 million units, according to figures cited at the event.

Chinese automakers are also moving from exporting vehicles toward building overseas production facilities and integrating into local supply chains.

More than 100 Chinese vehicle production bases have been established overseas, with overseas production capacity exceeding 2.5 million vehicles, Wang said.

At the same time, joint ventures are taking on new forms, with multinational automakers increasingly relying on Chinese technologies and R&D capabilities and exploring ways to export products developed in China to global markets.

At the Chengdu show, for example, Dongfeng Peugeot and Dongfeng Citroen are highlighting their transition toward intelligent electrification. BMW has started taking orders for its long-wheelbase Neue Klasse iX3.

Other major brands including Audi, Volkswagen, Buick, Toyota and Honda are displaying their new electric and intelligent models tailored for Chinese customers.

The event's organizers also integrated a wider range of immersive experiences this year. For example, a dedicated model-car zone has been set up for the first time, alongside limited-time weekend special events.

"Our vision is to build the show into an automotive-culture carnival open to all members of the public," Liu said.

The importance of the Chengdu show extends beyond the exhibition halls.

Chengdu, capital of Sichuan province, has developed into a major automotive manufacturing and consumption center in western China, supported by an increasingly complete new energy and intelligent connected vehicle industrial chain.

A dedicated exhibition area for the "Chengdu-made" intelligent connected vehicle industry chain has been established for the first time, showcasing technologies in batteries, electric drive systems and intelligent connectivity.

Vehicles produced in Chengdu by brands including Volvo, Zeekr, Lynk& Co and Jetta are also on display.

The show is also connecting local manufacturers with overseas buyers, reflecting Chengdu's growing role as a gateway for Chinese vehicles entering global markets.

For the Chinese auto industry, this year's Chengdu show is more than a platform for new-car launches, analysts said.

It is also a test of how automakers can respond to a shrinking market, increasingly demanding consumers and intensifying global competition, they said.

The message emerging from the event is clear: China's auto industry is moving into a new phase in which technological capability, global competitiveness and value creation are becoming increasingly important alongside sales volume.