At the world's largest car fair, which opened in Beijing on Friday, hundreds of manufacturers displayed over 1,000 vehicles to hundreds of thousands of enthusiasts, yet remarkably few drivers were behind the wheel. China's car companies have already dominated the domestic electric vehicle market and are increasingly prominent globally. Now, they are focusing on what they believe is the future of mobility: autonomous driving.
Intelligent Driving Technologies on Display
The Beijing Auto Fair, a massive industry event covering 380,000 square metres on the outskirts of the capital, served as a platform for the country's carmakers to showcase a range of intelligent driving technologies. In China's fiercely competitive domestic market, nearly every major carmaker is investing heavily in the software and computing power required to make 'hands-free' driving a reality. This push is driven by the need to offer additional perks and find new revenue streams.
Huawei, the telecommunications giant, announced 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 some version of intelligent driving makes it different to almost any market in the world,' said Tu Le, managing director of Sino Auto Insights, a consultancy. Le noted that the Chinese market is so competitive that selling passenger vehicles domestically is no longer viable for profitability, necessitating additional services like leasing AI-powered software to boost revenues.
AI Integration in Vehicles
Electric vehicle maker Xpeng revealed that its latest AI model allows drivers to issue commands such as 'park near the entrance to the shopping centre' rather than specifying a precise location on a map. Meanwhile, Xiaomi, known for appliances and phones, has developed an AI-powered operating system that enables drivers to make restaurant reservations, compile notes while driving, and order coffee. The system can also detect when drivers appear stressed or agitated and adjust lighting and music to create a calming environment upon arrival home.
Market Challenges and Export Growth
Domestic car sales in China have declined sharply in recent months. Passenger vehicle sales dropped by 17% in the first quarter of this year as the government phased out a subsidy programme. BYD, the leader in China's EV industry and a bellwether for the sector, reported seven consecutive months of declining sales. In contrast, China's exports surged by over 60% in the first quarter.
Chery, China's largest car exporter, has set its sights on the UK market. Since launching in the UK in August 2025, it has become one of the fastest-growing car brands there, selling 13,500 cars between September 2025 and March 2026. On Friday, the company announced a target of 10 million global annual sales by 2030, up from 5 million in 2025. Farrell Hsu, UK country director for Chery, stated: 'This exceptional growth underlines Chery UK's position as a key contributor to the overall business growth by 2030.'
Robotaxis and Global Ambitions
The focus on overseas sales was evident at the fair, as carmaker Geely announced plans to deploy thousands of driverless taxis globally next year through its ride-hailing arm, Caocao. Chinese companies aim to compete with US robotaxi firms like Waymo, which have proven successful in San Francisco and Los Angeles. Robotaxis have already been introduced in several Chinese cities, but widespread adoption has been limited by regulatory barriers as much as technical ones.
Last week, the Chinese government concluded a public consultation on proposed safety standards for autonomous cars. There are no nationwide guidelines yet, and Beijing has been cautious about allowing unrestricted access for driverless cars on its roads. Last month, several of Baidu's Apollo Go robotaxis stalled in the middle of the road in Wuhan, leaving riders stranded for hours.
Despite these challenges, Chinese robotaxis are expected on London streets this year, as Lyft and Uber have announced partnerships with Baidu to use its self-driving software. Faced with tariffs in major markets like the US and the EU, Chinese carmakers are focusing on smaller markets such as the UK and Canada to shift units. One industry professional noted that the UK is appealing because it is seen as 'culturally agnostic' about allowing Chinese EVs on its roads, unlike other countries that have blocked them on national security grounds.
Chinese companies are expected to account for one in every 10 new cars sold in Britain in 2025. In February, Chery launched its fourth brand in the UK. Hsu said the company is 'actively considering options for production and R&D facilities in the UK.'
