Core Insights - The 2025 Shanghai International Auto Show serves as a significant platform to observe changes in the global automotive landscape, highlighting the deepening cooperation between China and Germany in the automotive industry [1][18] - The German automotive industry association (VDA) emphasizes the importance of strategic collaboration in emerging fields such as assisted driving, AI cabins, and green manufacturing, where both Chinese and German companies have distinct advantages [3][12] Industry Trends - The auto show attracted nearly 1,000 exhibitors from 26 countries, with over 70% of the displayed vehicles being new energy models, marking a record high [5] - Key themes of the show included electrification, intelligence, and software-defined vehicles, showcasing China's transition from a follower to a competitor in the next-generation automotive sector [5][12] - German automakers are adapting to the competitive landscape in China through enhanced localization strategies, with companies like Volkswagen and BMW unveiling new models and technologies tailored for the Chinese market [7][10][12] Market Dynamics - VDA data indicates that Chinese brands hold less than 1% market share in Germany, while German brands maintain approximately 20% market share in China, reflecting a significant asymmetry in trade [13] - The structural tension in Sino-German automotive relations is characterized by deep interdependence and competition, with both sides seeking to leverage their strengths in technology and market access [12][18] Policy and Cooperation - The VDA advocates for dialogue and rule-based solutions to address structural differences and maintain stable global supply chains, opposing EU tariffs on Chinese electric vehicles [14][15] - A strategic cooperation agreement was signed between Chinese and German automotive associations to build a credible data space for the global automotive industry, focusing on supply chain transparency and carbon footprint tracking [17] - Over two-thirds of German automotive companies plan to increase investments in China, reflecting the country's attractiveness as the largest single automotive market [17][18]