With over 360,000 square meters of exhibition space showcasing nearly 1,000 exhibitors from 26 countries, the 2025 Shanghai Autoshow made one thing clear – the future of automotive isn’t just electric, it’s profoundly digital. And China is leading that transformation.
What made this year's show truly remarkable for me wasn’t just the stream of glitzy new EVs. It was witnessing how digital-native and AI-by-design experiences will be embedded into these wheeled exteriors — experiences that will fundamentally redefine mobility.
These innovations aren’t confined to automotive either. They’ll shape other consumer electronics sectors and push decision makers across industries to rethink the boundaries of experience design, brand differentiation and how they deliver value. Here’s my key takeaways.
1. Digital-first, not an afterthought
Domestic brands like NIO, XPeng, BYD, Geely (Zeekr) and tech entrants such as Huawei and Xiaomi, showcased cutting-edge designs and intelligent in-cabin experiences that blur the line between automobiles and digital consumer devices. Built from the software up, these EV models are tightly integrated ecosystems where hardware, software and AI converge to deliver smarter, faster, safer and more sustainable mobility. They're intelligent, connected experiences that fundamentally challenge the very definition of personal transportation.
In contrast, many established OEMs were still showcasing concepts and prototypes with unclear timelines.
The real difference is not only in the execution, but also in the operating model. In today’s market, the most valuable innovation is driven by software, and this is where China has a decisive edge compared to traditional, manufacturing-led OEMs.
In our most recent automotive industry outlook East meets West, we demonstrate how companies like XPeng and NIO deploy OTA software, which updates every 45 days. Whereas legacy manufacturers often go 12 to 18 months between software updates. And even then they provide little value. The agility of the Chinese manufacturers allows for more frequent product improvements and feature enhancements, creating a continuously evolving customer experience that adapts to drivers’ needs.
2. Thoughtful design to deepen brand connection
NIO showcased its third automotive brand Firefly at the auto show. It’s an example of user-centric design that brings tailored hardware and software together to enhance the driving experience. The minimalist five-door hatchback is specifically designed to offer high-end features in a compact form factor, targeting young urban drivers with just enough disposable income to seek a blend of luxury and practical EV model.
The interior comes with horizontal touchscreens, ambient lighting that adjusts based on driving scenarios, and integration with NIO's battery swap technology for added convenience. These design elements aim to create a personalized and emotionally engaging driving experience which demonstrates NIO's broader strategy to foster deeper connections between drivers and their vehicles.
Mark Zhou, chairman of NIO’s product committee, said that their vehicles are “user-experience-defined” rather than “software-defined.” This signals a fundamental reorientation in automotive design philosophy, one that transcends traditional HMI frameworks and positions the vehicle as a reactive machine to a companion that evolves with the driver.
When a product or service is designed to embed into users’ emotional narratives (visceral), daily rhythms (behavioral), and aspirational identities (reflective), it unlocks unmatched, life-long brand loyalty — something no ad campaign can replicate.
PS. For non-designers reading this, I highly recommend Don Norman’s Emotional Design for a deeper dive into this framework.
3. AI and emotional design — the next new personalized cockpit companion
Of course AI was a must-have topic for brands showcasing their new models and peer-to-peer conversations gazing into the future. Chinese automakers are again leading the race of reimagining in-car experiences with advanced AI and emotional design. This marks a transition from traditional voice commands to intelligent assistants that engage in natural conversations catering for the needs of users.
For instance, XPeng's G6 has an AI assistant, XiaoP, which can detect and respond to individual commands such as adjusting climate settings when a passenger expresses discomfort.
Mercedes-Benz also showcased its electric CLA sedan (its local model in China) that is equipped with ByteDance’s “Doubao” LLM. This allows in-car assistants to respond to spoken queries almost instantaneously with an ability to handle a wide range of complex requests.
2025 may well be the year talking to your car starts to feel completely normal. But more than that, AI’s ability to anticipate user needs and build rapport transforms vehicles from products into companions. This conversational intimacy creates trust and, ultimately, stronger brand affinity.
4. Localized or not localized design, a strategic decision
As Chinese EV companies rapidly expand abroad, they’re learning to localize interfaces and features based on local norms and tastes. At the same time, foreign OEMs operating in China are integrating local digital ecosystems to stay relevant.
BMW’s partnership with Alibaba and integration of DeepSeek’s AI assistant is a prime example. It's a bold attempt to show that even a German brand can “think” and interact in a way that resonates with Chinese consumers.
Localization isn’t just about language. It’s about redesigning the entire user experience based on local behaviours, digital habits and expectations. Brands can also (finally) deliver hyper-personalization at scale with generative AI and adapt to both driver preferences and passenger behaviors through real-time learning.
Still, some brands remain intentionally universal. They invest in designs that are universally intuitive and engaging that they don’t need to localize. Think Apple or Tesla. There is something elegantly functional and deeply desirable about these products.
The lesson here is that experience is the brand.
5. Experience is the core brand differentiator
As every major player invests in design and crafts a story through the in-car experience at this year's Shanghai Autoshow, the difference between brands do begin to blur. This is the paradox of innovation at scale: once technology matures and becomes accessible, mass adoption breeds uniformity. What begins as a differentiator quickly becomes table stakes.
Technology does pose a potential risk that everything starts to look the same, feel the same and behave the same. Where do we find the soul and meanings behind brands in this hyper digitized world? Where can we get those goosebump moments when we interact with a brand?
This is where brands need to dig deeper.
Yes, design elements matter. Yes, empathy-driven UX can solve real problems. But true differentiation lies not in what a product does, but in what it means and stands for.
When your starting point is deep empathy for end users and moving beyond features to craft experiences that carry personal connection and meanings — that is a fundamentally different proposition.
