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Taking on BMW, Mercedes and Porsche: China's premium brands push into Europe

Avatr, Zeekr and Xpeng want a foothold in Europe's premium segment. Avatr's new models are due to start at about 60,000 euros, while Zeekr has more than tripled its European sales.

Zeekr 001 at IAA 2023 in Munich (Archive image)

Archive image · Photo: Matti Blume / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)

Chinese automakers are trying to win customers from Europe's premium brands, pitching mainly on technology, Reuters reported Oct. 16 during the week of the Paris Motor Show. Avatr plans an electric sedan and SUV starting at about 60,000 euros. The company estimates that Europe accounts for 72% of sales of cars priced above $50,000 outside the United States. “If we want to be a premium brand, if we don't enter Europe … we don't really win,” said Avatr executive Justin Li.

According to Reuters, Zeekr more than tripled its European sales to 9,525 vehicles in the first nine months of 2026, up from 3,025 a year earlier, and is present in 22 European markets. Xpeng sold more than 29,000 cars in Europe from January through August, more than double the year-earlier figure. By comparison, BMW, Mercedes-Benz, Audi and Porsche together sold almost 2 million vehicles in Europe in the first nine months.

“You need to be in this market long enough to build up your presence and credibility,” said Xpeng Vice President Zheng Yeqing. An Audi spokesperson said it is the task of European policymakers to ensure fair competitive conditions. Bentley CEO Frank-Steffen Walliser had earlier stressed that true luxury comes from the “heart of Europe,” Reuters reported.

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