Trade war and safety concerns take centre stage at Shanghai auto show

SHANGHAI, April 23 (Reuters) - China's annual major auto shows have become a showcase for the rise of ever-cheaper, better-performing electric vehicles and more confident local brands in the world's biggest market for cars.

But the Shanghai auto show opened on Wednesday amid deep industry-wide uncertainty over how the U.S.-China trade war could dampen demand and scramble supply chains as 100 more models launch into an already crowded market with more losers than winners.

In a further complication, Chinese regulators signalled more and tougher scrutiny for smart-driving features that many automakers had seen as the next big thing in setting apart their cars from competitors just a week ago.

U.S. President Donald Trump's move to impose a 145% tariff on Chinese imports and Beijing's counter-tariffs and trade restrictions have pushed global growth forecasts lower and forced automakers and their suppliers to confront new risks.

As the Shanghai show began on Wednesday, a coalition of U.S. auto industry groups sent a combined letter to Trump urging him to roll back 25% tariffs on all imported auto parts, warning the duties would cut vehicle sales and raise prices.

The first blitz of presentations by automakers in Shanghai focused on safety and plans for a rapidly expanding portfolio of EVs from brands like Volkswagen (VOWG.DE), opens new tab and Nio (9866.HK), opens new tab without discussion of the economic uncertainty.

Car demand in China has held up so far this year despite the trade war. Industry-wide auto sales through March were up 12.5%, led by gains for BYD (002594.SZ), opens new tab and Geely (GEELY.UL), China's two top automakers.

But there are also...
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