Auto Shanghai 2025: Can traditional ICE vehicles compete in the autonomous era?

Auto Shanghai 2025, one of the major global automotive events on the calendar, is taking place from 23 April - 2 May 2025 and GlobalData are there to cut through the noise to bring you the real insight behind the biggest announcements.

John Zeng (Director of Asian Forecasting) and Lancy Zhang (Powertrain Market Analyst) have shared their thoughts on some of the show's biggest talking points.

Key Takeaways

Volkswagen Group's Innovative Strategy

At this year's auto exhibition, Volkswagen Group unveiled an innovative approach to enhancing their market position by augmenting traditional Internal Combustion Engine (ICE) vehicles with cutting-edge autonomous driving technology, establishing a unique technical trajectory.

Audi-Huawei Milestone

VW Group aims to demonstrate that next generation mobility is not limited to purely Electric Vehicles (EVs). The company has a substantial portfolio of conventional vehicles and has integrated the Huawei MDC810 computing platform in the Audi A5L, which boasts 400 TOPS of computing power, along with the Huawei Advanced Driving System (ADS) 3.0 system.

Shifting Consumer Preferences

Consumers are moving away from ICE vehicles not only due to the powertrain system, but because of their limited adoption of intelligent driving systems.

Insights

Latency Solutions

The response time of mechanical products is markedly slower than that of their electrical counterparts. VW Group's products have shown that the company has successfully attained real-time control capabilities by integrating intelligent systems with traditional vehicles, despite the inherent slower mechanical response times.

Successful Integration

Huawei provides algorithms and computing platforms while Audi optimizes powertrains, combining German handling with Chinese smart driving technology. This collaboration model offers replicable solutions for legacy automakers.

Perception Change

The consumer perception of "smart cars" is typically associated with “EVs." VW Group's strategy may inspire a rethink. Its success or failure will significantly impact other automakers' transition timelines.

Impact

Industry Restructuring

The industry structure will undergo a reshaping, particularly in the supply chain and in the competition for technology standards. Established automakers might collaborate on "smart ICE" standards to challenge Tesla's EV-centric intelligent framework.

Competitive Differentiation

Before fully committing to Battery Electric Vehicles (BEVs), smart ICE vehicles could become a key selling point for non-Chinese brands, especially for those grappling with New Energy Vehicles (NEVs). Simultaneously, the new technology could maintain a higher resale value than traditional ICE vehicles.