Smart driving capabilities are emerging as the next major differentiator for carmakers now that electrification has become the industry norm in China, a shift on clear display at the ongoing Auto Guangzhou.

The auto show, China's final major industry event this year, kicked off on Friday, showcasing 1,085 vehicles from local Chinese carmakers and global brands.

Among them, 629 models, or 58 percent, are electrified ones, whether purely electric, plug-in hybrid or range-extended. The percentage was a sharp rise from the 43.7 percent seen a year earlier.

Domestic companies including BYD, XPeng, Nio and Voyah are showcasing their latest lineups and foreign brands such as Volkswagen and Toyota are showing that they are leaning heavily on electrification.

The shift aligns with consumer demand. China's NEV sales rose 32 percent in the first 10 months of the year to 12.94 million units, according to the China Association of Automobile Manufacturers.

In October, NEVs accounted for 51.6 percent of monthly new car sales, the first time they surpassed the 50 percent threshold.

As almost all carmakers have NEVs in their lineup, they are pinning hopes on smart driving abilities and in-cabin features to stay ahead of rivals.

The new trend has made the biggest highlight of the show not any carmaker but Huawei.

The technology giant's intelligent automotive solutions unit is participating in the event for the first time, exhibiting models that feature its hardware and software.

Meanwhile, Huawei's Harmony Intelligent Mobility Alliance, which has been codeveloping brands with carmakers, is seeing its booth teeming with visitors.

HIMA has increased its members to five — Aito, Luxeed, Stelato, Maextro and Shangjie — with their combined sales hitting 1 million units in 43 months.

The meteoric sales have convinced car buyers that Huawei excels in smart driving, and the rise of those brands, especially Aito, which is codeveloped with the previously rather uncompetitive Seres, has prompted other carmakers to follow suit.

Besides the five brands in HIMA, Huawei's latest joint projects — Qijing with GAC and Yijing with Dongfeng — also debuted on the eve of Auto Guangzhou this year. Both companies have vowed to invest tens of billions of yuan into the programs.

Qijing plans to launch two models in 2026, including a shooting brake that has completed extreme-heat testing and is scheduled for a June market release.

Yijing is scheduled to unveil its first model at the Beijing auto show in April 2026 and says it will add at least one model a year.

Many Chinese and international carmakers have adopted Huawei's smart driving and smart cabin technology, though the level of cooperation varies.

Multiple new models, including GAC Hyper's A800 and Voyah's Free+, are equipped with the company's full suite of cockpit and driving systems.

Japanese brands are also adopting Huawei solutions, with Nissan introducing a HarmonyOS-equipped Altima and GAC Toyota confirming the bZ7 as its first model to integrate Huawei's cockpit.

Even Huawei's name dominates marketing materials across booths, with "Huawei intelligent driving" and "HarmonyOS cockpit" printed prominently beside display vehicles.

Jin Yuzhi, CEO of Huawei's intelligent automotive solutions unit, said 33 vehicle models from 14 automaker brands now adopt the company's intelligent driving platform, Qiankun.

In October alone, monthly sales of Qiankun-equipped vehicles surpassed 100,000 units.

Dominant as it is, Huawei is not the only option. Momenta is a more popular choice for global carmakers.

One example is GAC Toyota's bZ7. It adopts Huawei's smart cabin but chooses Momenta as its smart driving solution provider, as Toyota is one of Momenta's investors.

BMW and Mercedes are working with Momenta as well to tailor solutions for their models.

Mercedes' first model to feature Momenta technology is the CLA, which hit the market earlier this month.

The first one for BMW will be the Neue Klasse iX3, which is expected to hit the market in early 2026.

Beyond the iX3, the solution will be rolled out to additional BMW models as the two companies move to accelerate the deployment of intelligent driving-assistance technologies in China.

Audi is divided: its FAW Audi joint venture has partnered with Huawei, while SAIC Audi is working with Momenta.

The FAW Audi A5L Pilot, which was launched at the Auto Guangzhou, is the first premium fuel model to feature Huawei's solution.

Chinese dominance

Another feature of this year's Auto Guangzhou is the expanding presence of Chinese manufacturers, especially those based in Guangdong province.

Shenzhen-based BYD, the world's bestselling NEV maker, has once again booked an entire hall, unveiling its flagship Han L and Tang L alongside OTA updates and even building a special outdoor water-rescue demonstration zone for its Yangwang brand.

Guangzhou-based GAC Group also uses a full pavilion, with its Hyper, Aion and Trumpchi brands all bringing new models — many integrating Huawei technology — across sedans, SUVs and MPVs.

Startup XPeng, also based in Guangzhou, is exhibiting all its models ranging from the popular Mona M03 to the newly launched range-extended X9.

Other Chinese carmakers are asserting their presence as well. Chery Group is displaying 34 vehicles across its six brands.

Geely's Galaxy unit has introduced the V900, equipped with an AI-enhanced range-extended system, marking the brand's formal entry into this popular segment.

Dongfeng's Voyah is highlighting its flagship Taishan SUV, which was launched days before the auto show, and a four-seat Dream MPV in a new Shanhe edition.

Domestic automakers' assertiveness reflects their expanding market share.

Retail sales of Chinese brands reached 1.55 million units in October, up 4 percent year-over-year, pushing their share to 68.7 percent, according to the China Passenger Car Association.

Over the first 10 months, their market share averaged 65 percent, a 5.5-point increase.