The auto show that was once a must-attend event for the automotive industry has become almost irrelevant. At this year's Consumer Electronics Show (CES) in Las Vegas, new cars were scarce, and many were absent altogether. The absence of cars at CES is not just a matter of the traditional car manufacturers skipping the event, but rather it reflects a broader shift in the global auto market.
The center of gravity for the auto world has moved to China, both technologically and geographically. Chinese automakers are now the ones driving innovation, and their products are being showcased at events like Shanghai Auto Show. The IAA Mobility convention in Munich is also becoming an important platform for them to showcase their latest offerings.
This shift has left traditional Western manufacturers scrambling to keep up. Many have abandoned their US-based plans to launch new models, opting instead to focus on China's massive market. Even major brands like Mercedes and BMW are now investing heavily in Chinese production, recognizing the importance of this growing market.
The reason for the decline of car shows is the rapid pace at which technology is advancing. Chinese manufacturers are bringing new products to market much faster than their Western counterparts, with some models taking as little as two years from R&D to delivery. This makes it increasingly difficult for traditional manufacturers to keep up with the latest trends and innovations.
As a result, events like CES have become less relevant. The industry is no longer borrowing technological credibility from Silicon Valley; instead, automotive tech has become an industrialized technology that is expected in the market, not showcased as a novelty at a car show. To regain dominance, Western manufacturers will need to undergo another seismic shift in evolution - and it may be too late for annual events like car shows to keep pace with progress in China.
The absence of cars at CES this year serves as a stark reminder that the auto industry is evolving rapidly, and traditional models of innovation and marketing are no longer working. The global car market is becoming increasingly dominated by Chinese manufacturers, and it's unclear whether Western brands will be able to reclaim their place in the spotlight anytime soon.
The center of gravity for the auto world has moved to China, both technologically and geographically. Chinese automakers are now the ones driving innovation, and their products are being showcased at events like Shanghai Auto Show. The IAA Mobility convention in Munich is also becoming an important platform for them to showcase their latest offerings.
This shift has left traditional Western manufacturers scrambling to keep up. Many have abandoned their US-based plans to launch new models, opting instead to focus on China's massive market. Even major brands like Mercedes and BMW are now investing heavily in Chinese production, recognizing the importance of this growing market.
The reason for the decline of car shows is the rapid pace at which technology is advancing. Chinese manufacturers are bringing new products to market much faster than their Western counterparts, with some models taking as little as two years from R&D to delivery. This makes it increasingly difficult for traditional manufacturers to keep up with the latest trends and innovations.
As a result, events like CES have become less relevant. The industry is no longer borrowing technological credibility from Silicon Valley; instead, automotive tech has become an industrialized technology that is expected in the market, not showcased as a novelty at a car show. To regain dominance, Western manufacturers will need to undergo another seismic shift in evolution - and it may be too late for annual events like car shows to keep pace with progress in China.
The absence of cars at CES this year serves as a stark reminder that the auto industry is evolving rapidly, and traditional models of innovation and marketing are no longer working. The global car market is becoming increasingly dominated by Chinese manufacturers, and it's unclear whether Western brands will be able to reclaim their place in the spotlight anytime soon.