The Shanghai event is held every two years and while it is not among the world's top five auto shows held annually in Detroit, Paris, Frankfurt, Geneva and Tokyo, carmakers converge to vie for a bigger share in the 28 million vehicle market.
"It's hard for someone with an EV to come and take away market share from SUVs", stated Ben Cavender of China Market Research Group.
Past year 11m cars were recalled in China, just over 120,000 of which were domestic brands, but this apparent discrepancy is not deterring foreign brands from targeting what remains a growing market.
He said Mercedes sales grew 37 percent in this year's first quarter.
Ford Motor Co.'s luxury brand, Lincoln, has unveiled its first gasoline-electric hybrid, a version of its MKZ midsize sedan, at the Shanghai auto show.
The company also offers an extensive range of highly engineered Long thermal-management products for electric and hybrid vehicles, including aluminum integrated cooling plates that ensure the performance and reliability of insulated gate bipolar transistor (IGBT) switches.
For years, carmakers have struggled to gain economies of scale to bring down the cost of electric cars, which have failed to gain traction with consumers in part due to their price.
"We are prioritizing our electrification efforts on China to reflect its importance as a global electrified vehicle market", Ford CEO Mark Fields said in a statement.
But volume past year was skewed upward by a short-term purchase incentive and has generally slowed of late as China's decades-long economic boom loses pace.
This month, Ford Motor Co. said it will sell an all-electric SUV and a plug-in hybrid Mondeo Energi sedan in China.
The Swedish automaker, which is owned by the Chinese company Geely, is making a big bet on electric vehicles.
In 2015, Volvo became the first Western automaker to export a China-made premium auto outside the country when it began exporting the long-wheelbase S60 Inscription to the U.S.
"All automakers in China are still trying to understand the implications of the more stringent fuel efficiency regulations and whether to increase production of qualifying NEVs or purchase NEV credits from other automakers, including their partners", said James Chao, Shanghai-based Asia-Pacific chief of consulting firm IHS Markit Automotive. He said the brands plan to roll out a total of 10 new locally produced SUVs over the next two years.
China's government wants more electric vehicles (EV) on the roads but consumers remain hungry for sports utility vehicles (SUVs), forcing foreign automakers to get innovative with their offerings.
SAIC, the country's largest automaker, said it expects to double sales to 600,000 units this year. That would make it the biggest electric brand for a second year, with Tesla Inc.in second place at 76,230 vehicles sold. Koenigsegg joins forces for their Super EV concept; a 310-mile-range, four-door, four-seat supercar.
GKN, a global engineering group based in England that supplies components for the BMW i8 and Volvo's XC90, said on Wednesday China would become its global production hub for electrified drivelines starting in 2018 and production would be ramped up to an annual 1 million "eDrive" units by 2025.