(Image Source: Photograph by Lin Zhijia)

AsianFin — The 21st Shanghai International Automobile Industry Exhibition, or the 2025 Shanghai Auto Show, kicked off on Wednesday at the National Exhibition and Convention Center.

Running through May 2, the show features nearly 1,000 automotive giants and startups from 26 countries and regions, making it the largest edition in its history.

Spanning over 360,000 square meters, this year's event marks a significant expansion both in scale and global participation, reinforcing Shanghai's status as a bellwether for the global auto industry. More than 100 new models are set to debut, with rising Chinese brands like Xiaomi Auto, NIO's Le Tao, and Huawei's HarmonyOS Intelligent Mobility making high-profile appearances.

But the show arrives amid a backdrop of heightened scrutiny over intelligent driving safety, following recent accidents and regulatory crackdowns. The Ministry of Industry and Information Technology (MIIT) has issued directives against exaggerated marketing of autonomous and assisted driving features, effectively putting a brake on the sector's more flamboyant promotional tactics.

Smart driving technology remains a central theme at the 2025 Shanghai Auto Show, but companies are treading carefully. Startups and tech giants such as Huawei, Horizon Robotics, and Momenta occupy key spots on the showroom floor, though many have shifted their messaging toward safety and practicality.

Notably absent from the event are Hyundai, Kia, and France's Dongfeng Citro?n and Dongfeng Peugeot, underscoring changing dynamics in the global automotive landscape.

In the wake of a March 29 explosion involving Xiaomi's SU7, safety concerns have intensified. The MIIT followed up with new regulations on April 16 mandating stricter advertising standards and system function disclosures for intelligent connected vehicles.

Xiaomi, for example, has toned down its autonomous driving pitch this year. Its SU7 is on display, but the company's focus is squarely on financing and sales, with little mention of its driving tech in promotional videos. Its rumored YU7 model is also absent.

BYD, China's top EV maker, is shifting its language as well — replacing bold terms like "Eye of the Gods" with more measured labels like "Driving Assistance."

The shift comes as Chinese authorities and industry groups issue new guidelines aimed at curbing overreach in intelligent driving promotions. On April 21, the China Association of Automobile Manufacturers and the Society of Automotive Engineers released a joint initiative urging automakers to avoid misleading claims and clarify any previously published misinformation.

Executives from across the sector have largely welcomed the move. Horizon Robotics CEO Yu Kai called the tighter regulation a "net positive," arguing that a more rational, safety-focused approach will drive sustainable growth. Momenta CEO Cao Xudong echoed that sentiment, saying standardized language and safer practices will help weed out weaker players.

PwC China's Jin Jun noted that autonomous driving still faces steep hurdles in safety validation and cost control. The high price of core components like LiDAR and the demand for powerful onboard computing remain obstacles to broader rollout.

Beyond smart driving, automotive chips and humanoid robots are drawing attention on the show floor.

Intel unveiled its second-generation AI-enhanced Software Defined Vehicle (SDV) SoC — the first automotive chip to feature chiplet architecture — and announced new partnerships with local players like Black Sesame Intelligence. Meanwhile, Black Sesame showed off its Huashan chip line, which is already in mass production for models from FAW, Dongfeng, and Geely.

Xpeng Motors CEO He Xiaopeng introduced the company's humanoid robot "Iron," promising human-like interaction without the need for remote control. SAIC's Roewe brand also showcased bipedal robots capable of running and performing interactive demonstrations.

The exhibition also features a new "China Chip" pavilion in Hall 5.2H, reflecting Beijing's push for chip self-sufficiency amid a looming tariff battle with the U.S. The dedicated zone brings together firms like UNISOC, Fudan Microelectronics, and Naxin Microelectronics to highlight domestic semiconductor innovation.

China remains the global epicenter of EV growth. In 2024, domestic vehicle sales hit 31.44 million units, with new energy vehicles (NEVs) accounting for 12.86 million — more than half of global NEV sales.

Shanghai alone produced over 1.2 million NEVs last year, with a penetration rate of 68%, according to the newly released "2025 Shanghai Smart Vehicle Development White Paper."

Yet, the specter of global trade friction looms large. As new U.S. tariffs on Chinese chips take effect, Chinese automakers are accelerating their global strategies. PwC's Jin Jun emphasized the need for localized production and service networks overseas, warning that tariff volatility could further disrupt international supply chains.

While China's smart car industry continues to grow at a blistering pace — with Level 2 automation penetration expected to hit 65% this year — regulators and executives alike are signaling a shift from hype to substance.

"It's not about being the first to deploy flashy tech," said NIO CEO William Li. "It's about ensuring safety, managing expectations, and building long-term trust."

With smarter cars, smarter chips, and smarter rules all in focus, the 2025 Shanghai Auto Show isn't just about the latest models. It's a glimpse into the future of mobility — one where innovation, regulation, and global ambition are converging fast.