During the transition period between summer and autumn each year, it’s the “Chengdu Time” for the Chinese automotive industry.
“Starting from 169,800 yuan!” In Chengdu on August 25th, as Yu Chengdong, Executive Director of Huawei and Chairman of the Terminal BG, finished speaking, a flurry of camera flashes filled the venue. The mystery surrounding the “Shangjie,” the most affordable model in the Hongmeng Zhixing lineup, was officially unveiled in this western core city for automotive consumption.
Surprisingly, after the official announcement that the new car would be launched on September 23rd, the official channels of Hongmeng Zhixing quickly reported good news: within just one hour of opening pre – orders for the Shangjie H5, the number of small – scale pre – orders exceeded 25,000. This figure is several times the monthly sales of many automakers. Shangjie, with this set of “phenomenal data,” fired the first shot in the intelligent driving competition among automakers in the central and western regions, and also kicked off the 2025 Chengdu Auto Show with a powerful impact.
As the first A – class auto show in the second half of the year in China, the Chengdu Auto Show is never just a “new car showcase.” It’s a “skirmish” for automakers to sprint into the “Golden September and Silver October” sales season, and more importantly, a “strategic hub” for technology implementation, industrial chain connection, and regional consumption activation. That’s why the “pre – race” this year has been intense since August 25th.
“Chengdu and the entire Chengdu – Chongqing Twin – City Economic Circle are among the most active regions for automotive consumption in China,” said Liu Guoliang, General Manager of Hannover Milano Fairs (China) Co., Ltd., revealing the core logic behind automakers “flocking to Chengdu.”
On August 29th, the Chengdu Auto Show officially opened. According to a reporter from National Business Daily, nearly 120 automotive brands participated in this year’s show, with over 1,600 exhibition vehicles filling a 220,000 – square – meter exhibition area. From mainstream passenger cars to personalized modified vehicles, from cutting – edge humanoid robots to new – energy three – electric systems, it covers almost all the hot areas of the current automotive industry. It’s easy to foresee that when automakers showcase their most important models this year, this auto show will not only ignite the sales enthusiasm during the “Golden September and Silver October” but also set the key tone for the technological direction and market pattern of the Chinese automotive market in the second half of the year.
As the global automotive industry’s intelligent competition reaches a critical turning point from “technological competition” to “scenario implementation,” the strategic value of a city is being redefined. Chengdu, with its dual identities as the “core test field for intelligent driving commercialization” and the “key hub for market penetration,” has become a must – compete territory for automakers in the intelligent era.
China’s leading position in the global intelligent driving field needs no further elaboration: the penetration rate of L2 – level assisted driving has exceeded 50%, ranking first in the world, and the functions of high – speed NOA (Autonomous Navigation Driving) and urban NOA are accelerating their penetration into the mainstream price range. As the industry moves from the “technology verification period” to the “large – scale implementation period,” Chengdu, through the Chengdu Auto Show, has become the “first – show platform” for automakers’ latest intelligent driving technologies. Moreover, with the characteristics of the central and western markets it radiates, it has become the core springboard for intelligent driving to move from “high – end early adoption” to “mass popularization.”
Photo source: Photo taken by Zhang Jian, a reporter from National Business Daily
The “intelligent driving hub” status of this city is first reflected in the in – depth reconstruction of the auto show’s functions. Today’s Chengdu Auto Show has long surpassed the traditional positioning of a “product display window” and has become a “practical verification platform” for the intelligent technologies of global automakers. At this year’s Chengdu Auto Show, Voyah launched a new car with Huawei’s Qiankun ADS 4 system for the first time, Chery’s Xingjiyuan E05 started mass production with Horizon’s latest intelligent driving solution, BYD’s “Tian Shen Zhi Yan,” Geely’s “Qian Li Hao Han” and other new – generation intelligent driving systems were dynamically demonstrated in a concentrated manner. Almost all the core intelligent achievements of mainstream automakers chose to make their “market debut” in Chengdu, which has become the “wind vane” for judging the industry’s technological direction.
More importantly, the mainstream price range of 150,000 – 200,000 yuan targeted by Chengdu precisely hits the “golden track” for the penetration of intelligent driving. Data from the China Electric Vehicle 100 Committee shows that high – end intelligent driving has passed the “early adoption period” and is spreading to the 100,000 – 200,000 – yuan range. By the end of 2025, the penetration rate of NOA in passenger cars will double to 20% compared to the first half of 2024. The central and western markets where Chengdu is located happen to highly overlap with this price range, making it the best test field for the “large – scale implementation” of intelligent driving.
From the Shangjie H5, which starts at 169,800 yuan and is equipped with the HUAWEI ADS 4 system, to the Jetour Shanhai L7 PLUS, which starts at 129,900 yuan and is equipped with the Falcon 500 intelligent driving system, and then to the 150,000 – yuan – level intelligent driving models strategically deployed by automakers such as Changan and Leapmotor, every new car at the Chengdu Auto Show is a practical implementation of automakers’ “intelligent driving penetration strategy.” These models not only bring the “top – level” intelligent driving experience to the mainstream market but also radiate to the entire central and western consumer groups starting from Chengdu. For automakers, whoever can gain a firm foothold in the 150,000 – yuan – level intelligent driving battlefield in Chengdu will hold the “market initiative” for the future popularization of intelligent driving.
It can be said that Chengdu is no longer just a “regional market” in automakers’ intelligent layout. Instead, it is the “core hub” that determines the success or failure of their global intelligent driving strategy. It is the “first – verification place” for new technologies, the “key breakthrough point” for price penetration, and the “strategic starting point” for market penetration. The intelligent driving competition among global automakers has long entered the “Chengdu Time.”
As the production and sales of new – energy vehicles in China exceed 8 million units in half a year and the penetration rate stabilizes at 45%, a fierce competition for the “new growth pole” is taking place in the western region. Chengdu, a city with a new – energy vehicle ownership of 1.08 million, has not only achieved its five – year goal in advance as the “first non – restricted – license – plate city” but also, with its complete industrial chain from vehicle manufacturing to three – electric system supporting, has become the core pillar of the “third pole of China’s new – energy vehicles.”
Behind the data is the visible “new – energy speed.” According to data from the China Association of Automobile Manufacturers, from January to July 2025, the production and sales of new – energy vehicles in China both exceeded 8.2 million units. For every 10 new cars sold, 4.5 are new – energy vehicles. In Sichuan Province, where Chengdu is located, the production of new – energy vehicles in the first half of this year soared to 144,000 units, exceeding the total of the whole year in 2024. Its proportion in the province’s total vehicle production has jumped to 27.6%, an increase of 16.2 percentage points compared to the same period last year, which is equivalent to achieving a “capacity leap” in half a year that used to take a whole year.
Photo source: Photo taken by Zhang Jian, a reporter from National Business Daily
Chengdu’s “new – energy strength” is not limited to the production side. As early as 2024, the penetration rate of new – energy vehicles in this city was approaching 50%, meaning that for every two new cars on the road, one was a new – energy vehicle. By the end of June this year, the ownership of new – energy vehicles in Chengdu had reached 1.08 million, firmly ranking first among non – restricted – license – plate cities. It achieved the original target of “800,000 units of ownership by 2025” one and a half years ahead of schedule, confirming its status as the “core of the western automotive market” with real – world consumption enthusiasm.
This potential has made the southwestern region a recognized “next growth blue ocean” in the industry. According to industry forecasts, the production of new – energy vehicles in the southwestern region will exceed 3 million units in 2025, accounting for more than 20% of the national total. After the Yangtze River Delta and the Pearl River Delta, it will become the veritable “third pole of China’s new – energy vehicles.” And Chengdu is the absolute core of this “third pole.”
Automakers’ “westward strategy” has already been voted with actions. At this year’s Chengdu Auto Show, new – energy vehicles have completely taken the center stage. Mercedes – Benz’s new all – electric CLA, BYD’s Yangwang U8L, Chery’s Fengyun series, Ford’s Bronco New Energy are lined up, and smart’s latest super hybrid technology also made a special appearance here. Almost all mainstream brands have brought their “new – energy aces” for the second half of the year to Chengdu. There are also more intensive actions on the production side. According to a reporter from National Business Daily, FAW – Volkswagen Jetta is fully promoting its new – energy project in Chengdu and plans to launch its first all – electric model in 2026. Volvo’s Chengdu factory is also accelerating the transformation of its production line and will mass – produce high – end new – energy vehicles in the future. The new – energy vehicles “made in Chengdu” are moving from concept to large – scale production.
Photo source: Photo taken by Zhang Jian, a reporter from National Business Daily
What supports all this is the well – established “automotive industry ecosystem” in Chengdu. Taking Chengdu Economic Development Zone as an example, it is home to five “chain – leading” vehicle manufacturers such as FAW – Volkswagen, FAW Toyota, Geely (Lynk & Co), Volvo, and Dongfeng Peugeot – Citroën. Around them, more than 500 parts – supporting enterprises have formed a complete industrial chain from powertrain, chassis system, interior and exterior of the vehicle body to electronic appliances and new – energy three – electric systems. From a battery, a motor to the completion of a vehicle, the entire production process can be completed in Chengdu without cross – regional allocation.
With a “market enthusiasm” of 1.08 million units of ownership on the consumption side, an “industrial thickness” of a production capacity expectation of 3 million units on the production side, and an “ecological depth” of 500 supporting enterprises in the industrial chain, Chengdu is no longer just a “participant” in the new – energy vehicle market. Instead, it is the “key variable” that determines the industry’s growth pattern and the core force supporting the “third pole” of China’s new – energy vehicles.
As electric and intelligent vehicles are accelerating their popularization in the southwestern region, the strong consumption potential in Chengdu and its surrounding areas is prompting automakers to break free from the mindset of a “nation – wide unified model” and customize technological solutions for the unique road conditions, climate, and usage scenarios in this region. From the “mountain – area adaptation” of intelligent driving systems, the “high – temperature optimization” of charging facilities to the “southwestern customization” of range solutions, each innovation precisely targets the pain points of local users. A “technology adaptation battle” around the Chengdu market has quietly begun.
The mountainous terrain around Chengdu and the common presence of unmarked roads in the urban – rural fringe pose significant challenges to intelligent driving systems. “To address the pain points of intelligent driving applications in the central and western regions, lidars with longer wavelengths can be used, and millimeter – wave radars can be made to form redundant complementarity with cameras and ultrasonic radars. Multiple sensors work together to improve the reliability of positioning,” said a technical staff member in the intelligent driving field. Automobile manufacturers often start with hardware and conduct local adaptation of intelligent driving systems based on the characteristics of road infrastructure in the central and western regions to ensure their adaptation to regional road conditions.
Photo source: Photo taken by Zhang Jian, a reporter from National Business Daily
Extreme weather is also a challenge for intelligent driving in the central and western regions. For example, frequent foggy days in the Sichuan Basin can interfere with the perception of intelligent driving systems. “In this regard, if the hardware can be adjusted, the hardware should be optimized first. If the hardware is limited, the focus should be on software algorithm upgrades. By optimizing the perception – layer algorithm and fusion algorithm, and developing exclusive AI (Artificial Intelligence) algorithms for special weather, the system’s perception ability in bad weather can be enhanced to ensure driving safety,” the above – mentioned intelligent driving technician revealed. When promoting high – end intelligent driving technologies to mid – range models priced between 150,000 and 200,000 yuan, automakers will also formulate system – level safety strategies to adapt to hardware computing power. For example, when the computing power is insufficient, the function downgrade mode will be activated, and the driver will be promptly reminded to take over.
In addition, with the rapid growth of new – energy vehicles, problems such as the shortage and uneven distribution of charging infrastructure in the southwestern region have become more prominent. An owner of an all – electric vehicle in Panzhihua, Sichuan, told the reporter: “There are many more new – energy vehicles on the streets in the past two years, but the number of charging piles has not kept up. It’s common to see that the parking lots with public charging piles are full of cars.”
Taking Sichuan Province as an example, currently, more than 90% of the province’s charging piles are concentrated in the Chengdu Plain Economic Zone and the Southern Sichuan Economic Zone, with 63% concentrated in Chengdu. There are fewer charging piles in the urban fringe and rural areas, and the township coverage rate of public charging piles is still less than 40%.
“Due to problems such as insufficient capacity of power supply facilities and safety management, we found that it is difficult to install charging infrastructure in some communities during our business operations,” said a relevant person in charge of a charging pile enterprise in the southwestern region. The high – temperature summers in the southwestern region lead to more energy consumption during the charging process, which also requires higher hardware requirements for charging equipment. Automakers and charging
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