Where Are All the New Cars?
A few years ago, a top Mercedes executive in the US shared an intriguing insight: CES was the second-most significant car show globally, only surpassed by Detroit. This revelation was surprising, especially before the automotive industry's full-scale EV revolution. However, this year in Las Vegas, the absence of cars at CES was notable. Despite numerous automotive announcements, the focus shifted to AI and technology.
Chipmakers highlighted 'Physical AI' as a key trend, alongside new AI Cosmos models designed for training humanoids and robots. Nvidia introduced Alpamayo, an autonomous driving model emphasizing reasoning, aiming to mimic human driving. BMW confirmed its in-car Intelligent Personal Assistant will now use Alexa+. Ford revealed eyes-off, hands-free driving on its Universal EV Platform in 2028 and a new AI assistant. Sony and Honda showcased the Afeela 1, promising its release later this year, along with an SUV variant.
One of the major CES 2026 auto announcements was a new robotaxi from a collaborative team of Lucid, Nuro, and Uber. However, the US car industry is facing challenges. Sales are declining, and there's no respite in 2026. While American interest in EVs wanes after tax credits expire, global electric vehicle sales surged by over 20% last year, with BYD surpassing Tesla. China's auto industry is rapidly advancing, with plans to launch new EVs this year, while Jeep and Chrysler are discontinuing plug-in hybrid production in the US.
Industry experts attribute the absence of traditional car models at CES to the shifting focus of Chinese OEMs, who are ahead in software for autonomous driving. They argue that CES is no longer the right stage for them due to the inability to launch vehicles in the US. Andy Palmer, a former automotive executive, suggests that the industry's technological credibility has shifted from Silicon Valley to China. The center of gravity for the auto world has moved to China, making Shanghai the crucial expo for carmakers to showcase their innovations.
The Chinese auto industry's dominance is evident in Shanghai 2025, where they showcased their global leadership in charging rates, ranges, design, tech, and production volumes. This has prompted Western carmakers to seek alternative platforms like Munich's IAA Mobility, now Europe's largest car convention. For US auto brands to regain dominance, a significant evolution in vehicles is required, and the pace of innovation in China makes traditional car shows like CES less relevant. The industry's rapid progress in China means that annual events like car shows may soon be too slow to keep up.
