Chinese automakers make tech-led pitch for Europe’s premium car market

China's automakers are targeting Europe's premium car market with a focus on technology rather than heritage, in an effort to bypass established luxury brands. Companies like Changan's Avatr and BYD's Denza are showcasing intelligent luxury vehicles at the Paris car show, featuring advanced driver-assistance systems, rapid charging and comfort features.

However, gaining a foothold in Europe's premium segment, dominated by German brands such as BMW, Mercedes-Benz and Audi, will require persistence. Zheng Yeqing, a vice president at Xpeng, notes that it takes time to build presence and credibility in the market. Europe's premium segment is dominated by well-established luxury brands with deep brand heritage, which holds significant weight with European buyers.

Chinese automakers are effectively shut out of the US market, and while they have gained share in Europe's mainstream car market with affordable models and latest tech, entering the premium segment remains a challenge. Chinese brands such as Geely’s Zeekr have made inroads in China by offering lower-priced models packed with technology features.

Aito, an electric premium sedan and SUV from Avatr, will start at around €60,000 and feature rapid charging and comfort extras including a massager in every seat. For Avatr, Europe represents 72% of sales of cars priced above $50,000 outside the US market. Chinese automakers are reshaping what luxury means, with a focus on intelligent technology.

European premium brands are watching the newcomers closely, with Audi expressing confidence in embracing international competition including from China. While Chinese premium sales remain a tiny share of Europe's market, they are growing rapidly, with Zeekr's European sales more than tripling in the first nine months of 2026.