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Oct 16 (Reuters) – China’s automakers are betting European drivers will embrace a new form of premium motoring centred on technology rather than heritage, with brands such as Changan’s Avatr and BYD’s Denza pitching what they call “intelligent luxury”
Having rapidly gained share in Europe’s mainstream car market with affordable models and the latest tech, Chinese carmakers now have their sights on a bigger prize: the continent’s highly lucrative premium segment.
At this week’s Paris car show, Chinese brands showcased premium vehicles packed with advanced driver-assistance systems, rapid charging and comfort features, hoping to persuade buyers to choose unfamiliar Chinese badges over established luxury names.
But winning over Europe’s premium buyers is likely to take time.
“You need to be in this market long enough to build up your presence and credibility,” said Zheng Yeqing, a vice president at Chinese electric vehicle maker Xpeng, which launched in Europe in 2020 and saw its sales there more than double to more than 29,000 cars in the first eight months of 2026. “It takes persistence.”
Europe’s premium segment is dominated by Germany’s BMW, Mercedes-Benz and Volkswagen’s Audi, whose decades of brand heritage carry far more weight with European buyers than they do in China, where consumers place greater emphasis on technology features.
With domestic vehicle sales in China falling 20% in the first half of 2026 and competition intensifying, Chinese automakers increasingly need the margins that premium vehicles can deliver.
Europe is the obvious battleground. Chinese brands are effectively shut out of the US, the world’s most lucrative car market, while BMW, Mercedes, Audi and Porsche sold almost 2 million vehicles in Europe in the first nine months of this year alone.
Chinese brands such as Geely’s Zeekr have already gained share from German premium rivals in China with lower-priced models packed with technology features.
Avatr unveiled an electric premium sedan and SUV in Paris that will start at around €60,000 ($67,400) and feature rapid charging and comfort extras including a massager in every seat.
Justin Li, who heads the all-electric brand’s overseas expansion, said Avatr estimates that Europe represents 72% of sales of cars priced above $50,000 outside the US market.
“If we want to be a premium brand, if we don’t enter Europe … we don’t really win,” Li said.
REDEFINING LUXURY?
Typically, a German premium car launch includes images celebrating a brand’s heritage, such as an early 20th-century craftsman carefully shaping an elegant piece of wood trim.
