Automotive sensors and chips have become critical battlegrounds for semiconductor manufacturers, as their reliability and integration capabilities are key factors in the rapid advancement of automated driving technology. Texas Instruments (TI) aims to provide advanced driver assistance system (ADAS) solutions with its latest automotive LiDAR, clock, and radar chips.

The 2025 Shanghai Auto Show has drawn nearly 1,000 automakers and component suppliers from around the world. Chinese manufacturers continued to lead in presence, but a strong group of companies from Europe, the US, and Japan also presented their latest innovations. Notably, Tesla was absent for the third consecutive year. South Korean automakers Hyundai and Kia were also missing, underscoring shifting dynamics in the world's largest auto market.

Tesla may be stacked with strategic assets—from EV dominance to AI-driven autonomy and advanced energy systems—but 2025 is shaping up as a year of friction. Mounting delays, shifting priorities, and regulatory headwinds are complicating its ability to deliver on expectations.

Chinese smartphone maker Xiaomi's pivot into cars has become a high-profile success story. Its SU7 is a hit, forecast to sell 350,000 units this year, and even Ford Motor CEO Jim Farley has heaped praise on the model.

Volkswagen's software arm Cariad SE and Chinese AI chipmaker Horizon Robotics have jointly developed their first autonomous driving system under the Carizon venture, which will debut at Auto Shanghai starting April 23.

At its "Global Brand Night" in Hong Kong on April 15, XPeng Motors unveiled its 2025 global flagship, the XPeng X9, and laid out an ambitious new AI roadmap. Chairman and CEO He Xiaopeng said the company is entering a transformative decade, evolving from a smart EV maker into a full-stack AI innovator.

China's Ministry of Industry and Information Technology has instructed nearly 60 automotive manufacturers to cease using terms like "self-driving" and "smart driving" in marketing materials for Level 2 (L2) advanced driver-assistance systems (ADAS).

Chinese automakers have set ambitious targets to introduce Level 3 (L3) autonomous driving technology starting in 2025. Companies including GAC, Zeekr, Xpeng, and Chery have announced plans for aggressive rollouts of L3 and even Level 4 (L4) systems over the next two years. However, the primary challenge facing the industry is regulatory rather than technological. The broader adoption of these autonomous driving systems depends heavily on the establishment of detailed nationwide regulations.

In the face of rising global tariff pressures and an increasingly volatile automotive market, Chinese automaker Xpeng Motors is bucking the trend, actively accelerating its expansion into overseas markets. Xpeng's Co-founder and Chairman of the Board, Xiaopeng He, stated that over the next decade, competition in the automotive industry will be fierce, and only 5 to 7 electric vehicle manufacturers will ultimately survive.

XPeng Motors plans to begin mass production of its proprietary AI chip, "Turing," in the second quarter of 2025, with deployment across all of its vehicle models. The chip may also power autonomous flying vehicles and robots developed by XPeng's affiliated ventures, according to reports from the South China Morning Post and Sina Finance.

On the evening of April 15, XPeng held a global strategic launch event in Hong Kong to announce its automotive strategy for the AI era and unveiled the 2025 XPeng X9. Chairman and CEO Xiaopeng He stated that the 2025 X9 sets a new benchmark for smart mobility with 496 technical upgrades and 35% new components.

The Chinese companies complain about America's non-tariff barriers, but many foreign car manufacturers and brands want to enter the Chinese market—what company hasn't returned defeated?

Electric vehicles are naturally ideal platforms for testing AI technologies. At the same time, the robotics industry is moving beyond 2D control systems into 3D, 4D, and more complex dimensions. The real shift, however, lies in business model innovation, not just technical advancement. Lei Zhang, founder of Hillhouse Investment, highlights this evolution, calling China "not only a leader in technological innovation, but a global powerhouse in business model innovation." A new wave of Chinese entrepreneurs is capturing global attention.

Taiwan-based Global PMX, a leading manufacturer of automotive powertrain and safety components, is beginning to reap the benefits of its strategic investments in the autonomous vehicle sector.

China's EV dominance is already global, but the next front is autonomous driving. It's no longer just about the vehicle; it's about the AI-powered stack behind it: maps, sensors, monitoring, and infrastructure. For AI, smart cars aren't just another use case—they're the ultimate proving ground.

The US government under President Donald Trump initiated a new round of trade protection policies on April 3, 2025, imposing a 25% tariff on all automobiles produced outside the US and planning to further expand this to the automotive component supply chain starting May 3, 2025. This move has triggered a ripple effect across the global automotive industry, with China, as a major hub for automotive components, being particularly affected.

On March 29, a Xiaomi SU7 operating in Navigate on Autopilot (NOA) mode crashed on a highway in Anhui Province, killing three college-aged passengers. Despite detecting an obstacle and initiating braking, the vehicle collided with a roadside barrier at 97 km/h. The deadly crash quickly went viral on Chinese social media platforms.

As Tesla and Huawei continue to dominate headlines in China's autonomous driving race, another player is quietly reshaping the landscape. Founded in 2016, Momenta has captured more than 60% of China's urban Navigation on Autopilot (NOA) market for third-party suppliers, according to Xinhua News Agency. In a field crowded with tech giants and cash-burning startups, this stealth-mode contender has rapidly become a pivotal force in China's smart mobility sector.

At Nvidia GTC 2025, the discussion surrounding advanced autonomous driving heated up, with US automotive alliances and tech industry groups joining forces to urge President Donald Trump to take action. Their goal: to expedite the deployment of self-driving cars by overcoming current regulatory hurdles before China takes the lead in this emerging sector.

Chinese automaker BYD plans to dominate the world's largest car market in 2025 by making smart driving technology accessible in vehicles below CNY100,000 (approx. US$13,780), triggering rivals Geely and Changan to accelerate similar offerings. Industry sources confirm China's advanced driver assistance systems currently max out at Level 2+, requiring constant driver attention despite marketing that suggests otherwise.

Tesla is grappling with mounting international headwinds as geopolitical friction, regulatory uncertainty, and brand controversies collide. Straddling the divide between the US and China, the EV maker is catching heat from both sides—disrupting its supply chain, denting its image, and complicating expansion efforts.

BYD Co's sales last year surpassed the US$100 billion mark, leapfrogging Elon Musk's Tesla Inc on revenue, as the Chinese auto giant wows consumers with a range of electric and hybrid cars packed with high-tech features.

Chinese electric vehicle maker XPeng Motors believes the robotics industry will eventually surpass the automotive sector in scale, though consumer adoption may take several years. The company plans to initially focus on commercial applications in factories and retail environments.

With the collaboration between Nvidia and major US automaker General Motors (GM), AI is poised to take on a robotic form in car factories, promising to both boost production efficiency and advance autonomous driving technology.