SHANGHAI (AP) — Major automakers from China, Germany, and Japan showcased their latest models at the Shanghai Auto Show this week, emphasizing their focus on global markets unaffected by steep U.S. tariffs on car and auto parts imports. The 25% tariffs imposed by U.S. President Donald Trump are prompting companies to reassess their strategies and explore new opportunities.
Ma Lihua, general manager of Soling, a Chinese manufacturer of automotive electronics, noted the impact of geopolitical tensions on businesses. Soling, headquartered in Shanghai, supplies companies like Ford and Toyota and is expanding its manufacturing footprint to Vietnam. Many exhibitors at the show operate in both the Chinese and international markets.
Gestamp, a Spanish supplier of chassis and battery boxes, has faced challenges in the U.S. and Western European markets but is expanding in Asia, Latin America, and Eastern Europe. The tariffs add complexity to an already uncertain market.
Wei Jianjun, chairman of Great Wall Motor Co., emphasized the importance of political stability when investing in overseas markets. With high U.S. tariffs, the company is focusing on other regions, such as trade between China and Europe.
Tianshu Xin, CEO of Leapmotor International, stated that the U.S. market is not their primary focus due to differing regulatory environments and customer preferences.
Nissan plans to introduce 10 new electric vehicles in China by 2027 and invest an additional $1.4 billion by the end of 2026. In the U.S., it can utilize spare capacity to offset reduced imports.
Wuhan Kotei Informatics, a software provider for autonomous driving, has adapted its business model to address sanctions by acting as a consultant for foreign customers.
Some attendees believe Trump may eventually soften his stance on tariffs. Yang Jingdi of LvXiang Automobile Parts Co. noted that China’s robust supply chains give it an advantage if tariffs persist.
AOD Technology displayed a simplified version of Tesla’s Cybertruck equipped with its devices, showcasing its ambition to supply components to Tesla despite the challenging market conditions.
— new from AP News