The Decline of New Car Showcases

Not long ago, a prominent executive from Mercedes-Benz mentioned that CES was the second-most essential car exhibition globally, trailing only the Detroit Auto Show. This revelation was quite surprising as it highlighted the shift of automakers to the world's premier tech event. However, this year in Las Vegas, the presence of new cars was noticeably sparse.

Certainly, automotive technology was all around. The term 'driver assistance' was echoed by chipmakers. Nvidia unveiled a model specifically for autonomous vehicles that mimics human-like reasoning in driving. Meanwhile, BMW enhanced its Intelligent Personal Assistant with advanced conversational capabilities.

Ford made headlines by announcing future offerings like a completely autonomous driving mode by 2028. Their CEO hinted at a powerful integrated computing system converging functionalities like entertainment, driving aids, and connectivity, similar to innovations presented by BMW and Jaguar.

In a surprising move, rather than unveiling a new car, a noteworthy introduction was a humanoid robot intended to operate in genuine industrial settings, signaling a pivot towards robotics in their factories.

Actual new car displays were few. Companies like Lucid, Uber, and Nuro previewed developments in transportation, and Sony, in collaboration with Honda, unveiled the Afeela 1, with promises of future availability.

Changing Automotive Priorities

The biggest automotive announcement was a concept not for personal vehicles but a robotaxi developed by Lucid, Nuro, and Uber. The industry is shifting, and CES may no longer be the right platform, as Philip Nothard from Cox Automotive notes that significant automotive exhibits have waned at CES.

Sales declines and a shift in focus away from the American market are apparent. With traditional fuel vehicles back in political favor in the US, and as Asian and European manufacturers reassess showing newer models stateside, the focus may no longer be on CES.

Chinese automakers, now leading in software and autonomous technology, have little interest in a US launch due to market access issues. Consequently, CES is no longer appealing for them.

Shifting Global Focus

According to Andy Palmer, the automotive industry's focus has rotated towards China, where the most advanced innovation and consumer demand now lie. If automakers want to showcase the future of automotive, China's main expos are becoming the vital arenas for doing so.

The Shanghai auto expo last year was not just about displaying cars; it was a strategic declaration of intent towards global dominance in design and technology. This repositioning was a stern alert to Western car industries.

China's focus on rapid technological cycles and their strategy in the industry make events like Munich’s IAA Mobility crucial for international outreach. Chinese brands seek to demonstrate their capabilities beyond domestic borders, compelling giants like Mercedes to participate robustly.

A Call for Industry Evolution

For American auto brands and by extension CES to reclaim their former stature, dramatic and groundbreaking advancements in vehicle evolution are essential. However, the pace of technological advancement might soon surpass the annual timeline of auto shows.

Chinese manufacturers have impressively shortened the cycle time from concept to market availability, grasping opportunities rapidly. Their innovative prowess suggests that new model introductions are swiftly occurring outside traditional show schedules.

Nothard asserts that CES thrived when software and electric vehicle technology were pioneering the auto sector. Now with these technologies ingrained, only another major automotive evolution could reignite CES’s relevance in the automotive sector.