Complete vehicle manufacturers are lowering their emphasis on the Consumer Electronics Show (CES), the world's largest electronics and information technology fair. Unlike previous years when they unveiled new technologies one after another, next year they plan to reduce booth size and utilize it as a sales outlet. The manufacturers are facing challenges as they could not mass-produce the new technologies revealed at previous CESs due to the electric vehicle chasm (temporary delay in demand before popularization), coupled with severe restructuring in the industry due to declining sales.
According to industry sources on the 16th, five complete vehicle manufacturers plan to set up booths at CES 2025, which will be held from Jan. 7 to 10 (local time) in Las Vegas, including Germany’s Volkswagen and BMW, and Japan’s Honda, Mitsubishi, and Suzuki. Although the number of exhibitors (7) is similar to January's CES 2024, the manufacturers participating next year are expected to focus more on sales by setting up smaller booths or operating in a showroom format instead of unveiling new technologies in large booths.
In recent years, CES has become known as the 'Las Vegas Motor Show' due to the growing participation of complete vehicle manufacturers. Earlier this year, seven companies, including Hyundai Motor Company, Kia, Mercedes-Benz, BMW, Volkswagen, Honda, and VinFast, participated and showcased new technologies. Hyundai focused on software-defined vehicles (SDV) and hydrogen, while Kia presented purpose-built vehicles (PBV), emphasizing the innovation of mobility. German companies displayed technologies that integrate artificial intelligence (AI) based on Chat GPT into vehicles.
Interest in mobility at next year's CES is expected to decline compared to this year's event. Hyundai Motor Company and Kia have decided not to participate next year, and U.S. companies such as Ford, General Motors (GM), and Stellantis will not attend for the second consecutive year. Toyota, which led the mobility sector at CES 2020 by announcing plans for the construction of the eco-friendly city 'Woven City', will return next year but is expected to focus on sales by operating only a meeting space under its North American subsidiary's name, rather than unveiling new products or technologies.
Mercedes-Benz has also lowered its emphasis on CES compared to previous years. Although a booth has been reserved under the name of its U.S. subsidiary, it is said that there will not be participation from the headquarters level. A Mercedes-Benz representative noted, 'We are still interested in showcasing ideas and technologies, but the headquarters is looking for other opportunities to maximize promotional effectiveness.' Mercedes-Benz has participated in CES every year and showcased its MBUX, which integrates intelligent services into its self-developed vehicle operating system, and an electric concept car that can travel 1,200 km at CES 2024 earlier this year.
Industry insiders cite slower than expected electrification as a reason complete vehicle manufacturers are placing less emphasis on CES. For complete vehicle manufacturers, CES was a venue to showcase new technologies aimed at electrification. However, as electrification progresses at a slow pace, there are fewer new technologies to unveil.
The economic downturn and intense restructuring of U.S. and European companies initiated by the electric vehicle onslaught from China have also had an impact. An industry source stated, 'CES is a place to discuss the future, but the future is a conversation that happens when business is good,' adding, 'In a situation where revenue is dropping by several tens of percent, discussing the future is difficult.'