SHANGHAI - Global car makers flock to the Shanghai Auto Show this week with the world's largest vehicle market facing an unfamiliar sales slump just as China veers toward an ultra-competitive electric future.
Sales dipped 2.8 per cent in 2018 to 28.1 million units, according to the China Association of Automobile Manufacturers, a pace that has accelerated in recent months. But cut-throat competition is expected to intensify even in EVs with Beijing moving to phase out policies that encourage the purchase of green vehicles.
This includes incorporating the artificial intelligence technology of China's Baidu into Ford vehicles, giving Ford's Chinese joint ventures more freedom on design choices, and other steps. This has given rise to a number of Chinese EV start-ups seeking to stake out territory that will have to face off against the likes of Tesla.