The Auto Show That Just Isn't What It Used to Be
Every year, the world's top car manufacturers gather at Consumer Electronics Show (CES) in Las Vegas to showcase their latest innovations and technologies. But this year was different. As a senior Mercedes executive so candidly pointed out just a few years ago, CES has become less about new cars and more about the technology that makes them go.
At last week's CES, it was clear that the center of gravity for the auto industry had shifted – both technologically and geographically to China. Chinese automakers were nowhere to be seen, but their presence was felt through the announcements made by Western companies, such as Lucid, Uber, and Nuro, who showcased their robotaxi projects.
Ford revealed plans to offer eyes-off, hands-free driving on its new Universal EV Platform in 2028, while Hyundai unveiled a robot called Atlas that would assist in "real manufacturing environments." However, actual cars were scarce. Even Sony and Honda, two well-established automakers, wheeled out their Afeela 1 car, but promised it's finally coming to customers later this year.
Industry insiders point to the US car industry's struggling sales numbers as a major reason for the lack of new car announcements at CES. "A decade ago, you wouldn't have thought CES would be for cars – but then every car manufacturer was there," says Philip Nothard, Cox Automotive's Insight director. "[For auto] CES has now probably had its day."
The shift in the industry's focus is attributed to China becoming the hub of automotive innovation and technological advancement. Chinese companies are investing heavily in autonomous driving technology, software-defined vehicles, and electrification, which are no longer considered novelty concepts.
"CES used to matter to carmakers because the industry was borrowing technological credibility from Silicon Valley," says Andy Palmer, former COO of Nissan and former CEO of Aston Martin Lagonda. "Today that relationship has flipped. Automotive tech is no longer an exciting novelty, it’s to be expected."
The Chinese auto expo in Shanghai has become more strategically important than CES for many manufacturers, as it offers a platform to showcase their products outside of China.
"It's not just about being seen; it's about the actual technology and business," says Daniele Ministeri, senior consultant at automotive analysts JATO. "Chinese automakers are making huge investments in IAA Mobility, Europe's largest car convention."
The industry is now shifting towards a more rapid and agile approach to innovation, with Chinese companies leading the way. As Philip Nothard notes, "Look at Chinese manufacturers' lead time: from R&D to deliveries in two years on average. They're bringing cars to the market very quickly. A traditional manufacturer's average is seven years."
For CES to regain its importance, another seismic shift in the evolution of vehicles will be necessary – one that takes into account the rapidly changing landscape of the auto industry.
Every year, the world's top car manufacturers gather at Consumer Electronics Show (CES) in Las Vegas to showcase their latest innovations and technologies. But this year was different. As a senior Mercedes executive so candidly pointed out just a few years ago, CES has become less about new cars and more about the technology that makes them go.
At last week's CES, it was clear that the center of gravity for the auto industry had shifted – both technologically and geographically to China. Chinese automakers were nowhere to be seen, but their presence was felt through the announcements made by Western companies, such as Lucid, Uber, and Nuro, who showcased their robotaxi projects.
Ford revealed plans to offer eyes-off, hands-free driving on its new Universal EV Platform in 2028, while Hyundai unveiled a robot called Atlas that would assist in "real manufacturing environments." However, actual cars were scarce. Even Sony and Honda, two well-established automakers, wheeled out their Afeela 1 car, but promised it's finally coming to customers later this year.
Industry insiders point to the US car industry's struggling sales numbers as a major reason for the lack of new car announcements at CES. "A decade ago, you wouldn't have thought CES would be for cars – but then every car manufacturer was there," says Philip Nothard, Cox Automotive's Insight director. "[For auto] CES has now probably had its day."
The shift in the industry's focus is attributed to China becoming the hub of automotive innovation and technological advancement. Chinese companies are investing heavily in autonomous driving technology, software-defined vehicles, and electrification, which are no longer considered novelty concepts.
"CES used to matter to carmakers because the industry was borrowing technological credibility from Silicon Valley," says Andy Palmer, former COO of Nissan and former CEO of Aston Martin Lagonda. "Today that relationship has flipped. Automotive tech is no longer an exciting novelty, it’s to be expected."
The Chinese auto expo in Shanghai has become more strategically important than CES for many manufacturers, as it offers a platform to showcase their products outside of China.
"It's not just about being seen; it's about the actual technology and business," says Daniele Ministeri, senior consultant at automotive analysts JATO. "Chinese automakers are making huge investments in IAA Mobility, Europe's largest car convention."
The industry is now shifting towards a more rapid and agile approach to innovation, with Chinese companies leading the way. As Philip Nothard notes, "Look at Chinese manufacturers' lead time: from R&D to deliveries in two years on average. They're bringing cars to the market very quickly. A traditional manufacturer's average is seven years."
For CES to regain its importance, another seismic shift in the evolution of vehicles will be necessary – one that takes into account the rapidly changing landscape of the auto industry.