The absence of FAW Dongfeng in the internationalization of Shanghai Auto Show

At present, the five major international auto shows that are recognized by everyone are, in addition to the Geneva Motor Show where there is no auto industry in the country, the other four international auto shows are the protagonists of the host country's auto giants. The Shanghai auto show, which is determined to become an international auto show, should be the stage for the growing domestic auto giants to demonstrate their strength. However, following the absence of the previous Dongfeng Group, FAW Group also joined the ranks of absent and did not participate in the current Shanghai Auto Show.

The two giants miss together

At the Shanghai Auto Show this year, the booth area reached 140,000 square meters. Shanghai Auto Show has entered the ranks of the world automobile exhibition in terms of scale. However, the two giants of FAW and Dongfeng chose to miss the Shanghai Auto Show and abandoned the opportunity to compete with many domestic and international auto makers.

At the 11th Shanghai Auto Show two years ago, Dongfeng had announced high-profilely that it would not participate in the exhibition. At that time, this news once caused the industry to discuss. Dongfeng has been absent for the second time this year. Coincidentally, FAW also decided not to exhibit in the name of the group. This is unexpected news because FAW has consistently supported the Shanghai Auto Show for more than 20 years.

At the Shanghai Auto Show in 2003, FAW took out 100 vehicles as a media interview vehicle, creating a sensational effect; at the Shanghai Auto Show in 2005, under the condition that Dongfeng had a high-profile exit, FAW carried four new vehicles to help out. For this year's Shanghai Auto Show, although various subsidiaries of FAW will go to Shanghai for exhibitions, they will only appear on booths set up by Toyota, Volkswagen and Mazda.

As the only group of giants participating in the three giants, SAIC takes full advantage of the host. SAIC Motor will bring its passenger cars, commercial vehicles and parts and components together to participate in the exhibition. The scale and size of the exhibitors will be the largest in SAIC's history, and it will also be the largest exhibitor in the Shanghai Auto Show.

The shadow of local protection

Why FAW and Dongfeng are absent from the Shanghai Auto Show?

Dong Chen Motors Corporation Party Committee Minister Chen Hao gave this explanation. “Not participating in the Shanghai Auto Show is a set-down order for the Shanghai Auto Show because of its strong business promotion and not suitable for displaying the group image.” FAW Group Party Committee Propaganda Department Assistant Minister Li Huile said: “The Changchun Motor Show will begin in July. This time, it will cooperate with the Ministry of Commerce on the FAW Group. It will require a lot of manpower and financial resources, so we don’t have the energy to take care of the Shanghai auto show.”

Dongfeng has confirmed that in the future, it will only participate in the Beijing Auto Show and the Wuhan Auto Show in the form of a group. In the future, FAW will use the Beijing Auto Show and the Changchun Motor Show as its main promotional platform. From April, FAW will prepare for the Changchun Motor Show.

Li Huile also mentioned that the Shanghai Auto Show is too commercial. "Commercial taste is too strong" is only a pretext for Dongfeng and FAW, a local company vice president of sales revealed to reporters, FAW does not participate in this time, the real reason is not to get a good booth. "We were almost kicked out," the vice president said.

At the Shanghai Auto Show, the organizers gave SAIC great support. SAIC even opened up an image display area to show the glorious history of SAIC. “It is understandable that the organizers take care of local companies, but if you only take care of the organizers and do not take care of other local companies, this auto show is likely to become a local auto show. In the end, the Guangzhou Auto Show is the Guangzhou Auto Show. The Shanghai Auto Show is led by SAIC Motor and the Dongfeng is responsible for the Wuhan Auto Show. FAW has become a safflower in the Changchun Motor Show, and no one can do much," said a car analyst.

Impaired internationalization

The lack of two iconic companies, FAW and Dongfeng, can be compared to the Beijing Auto Show, which is indeed worrying.

Since 2001, the Shanghai Auto Show has frequently shouted the slogan of "Catch up with the Beijing Auto Show." However, under the circumstances where FAW's exhibiting strategy has changed, whether the Shanghai Auto Show will be attractive in the future has become a question.

Tian Xiang’s Gu Chen analyst said that both the Changchun Motor Show and the Shanghai Auto Show are held in odd-numbered years. Therefore, the Shanghai Auto Show, which hopes to become an international car show, is even more affected.

The lack of FAW and Dongfeng has no impact on the internationalization of the Shanghai auto show. There is also support for GM and Volkswagen. But for local companies, the indispensable status of the Shanghai auto show may have to be weighed again. Under the background of reducing costs, the promotion budgets of various companies may be more invested in the Beijing Auto Show and the more targeted regional automobile exhibitions.

In other words, if FAW and Dongfeng do not participate in the future, then even if the SAIC lineup is huge, in the outside world, the Shanghai Auto Show may become the next "Guangzhou Auto Show" or "Changchun Motor Show." This is naturally the result of the Shanghai Auto Show's unwillingness to see.

Just as the Frankfurt Auto Show will not exclude American auto companies, the Auto Show in Detroit will not exclude European auto companies. Shanghai Auto Show wants to create an image of an international auto show, as well as the absence of Chinese large auto companies.

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