The automotive industry's absence from CES: A sign of shifting power dynamics?
The world of cars is evolving, and the annual Consumer Electronics Show (CES) is no longer the epicenter of innovation. Once a crucial event for automakers, CES has seemingly fallen out of favor, leaving many to wonder: Where have all the new cars gone? But here's the twist—it's not just about the cars themselves.
A few years back, a high-ranking Mercedes executive whispered that CES was the second most significant car show globally, right after Detroit. This was a surprising revelation, especially before the electric vehicle (EV) boom. But now, the automotive presence at CES has dwindled, with only a handful of cars on display in Las Vegas this year.
The automotive industry is still making headlines at CES, though. Chipmakers introduced "Physical AI" to enhance vehicle capabilities, and Nvidia unveiled Alpamayo, an AI model for autonomous driving. Ford announced hands-free driving for its upcoming Universal EV Platform, and BMW's in-car assistant will now feature Alexa+. Even Hyundai showcased a robot, Atlas, designed to assist in vehicle manufacturing.
But the question remains: Why the sudden disappearance of cars from CES? The answer lies in the changing landscape of the automotive industry. Sales are declining in the US, and the market is in a precarious state. While global EV sales surged by over 20% last year, America is experiencing a slowdown after the tax credit's demise. BYD has even surpassed Tesla in EV sales, and Chinese automakers are gearing up to flood the market with new models.
And this is where it gets controversial. The US market's struggles are not just about sales figures. Daniele Ministeri, a senior automotive consultant, points out that the American market is "in a very tricky situation." With the Trump administration's support for combustion engines and OEMs investing in conventional power solutions, the future of CES as a platform for showcasing new models is uncertain.
Ministeri also highlights the absence of Chinese OEMs, who are ahead in software and autonomous driving technology. They are not launching vehicles in the US, making CES less relevant for them. Andy Palmer, a former automotive executive, agrees, stating that CES has lost its allure for automakers as automotive tech is now expected, not just an exciting novelty.
The real game-changer is China. The center of gravity for the automotive industry has shifted to the East, both technologically and geographically. The Shanghai and Beijing auto expos have become the new battlegrounds for automakers, as China's industry aims to dominate globally in charging rates, ranges, design, and volume. The West has been put on notice, and the power dynamics are shifting.
Chinese automakers are not content with domestic success. They seek global recognition, and with CES no longer an option, they've set their sights on Munich's IAA Mobility, Europe's largest car convention. Ministeri explains, "The Chinese are looking for a platform to showcase their products outside of China." Mercedes and BMW's significant investments at IAA reflect the importance of this new stage.
For CES to reclaim its former glory in the automotive world, a significant evolution in vehicle technology is needed. But with Chinese manufacturers' rapid development cycles, the traditional car show format may soon become obsolete. Philip Nothard, an automotive analyst, emphasizes the speed of Chinese innovation: "They're bringing cars to the market very quickly... A traditional manufacturer's average is seven years."
So, what's the verdict? The automotive industry's absence from CES is a symptom of a larger shift in power dynamics. As China continues to innovate and dominate, the West must adapt and find new ways to stay relevant in this rapidly changing landscape. The future of the automotive industry is being written, and it's a story that will keep us on the edge of our seats.
