\n<\/p>\n
XPeng CEO He Xiaopeng speaks at the launch of the Xpeng GX on the opening day of the Beijing Auto Show in Beijing on April 24, 2026. (Photo by Danai Howard \/ AFP via Getty Images)<\/span><\/p>\n AFP via Getty Images<\/small><\/div>\n<\/div>\n<\/figure>\n China\u2019s automotive industry has succeeded in the global mass market and is using the Beijing Auto Show<\/a> to signal its move upmarket. It is also pushing high-technology driver-assistance systems into low-cost vehicles. <\/p>\n China\u2019s automakers, confident now in their quality and style and with a lead in batteries and charging, is now the biggest global market for cars and SUVs. But its home market is under intense pressure because of overcapacity, leading to a brutal price war and a struggle for survival.<\/p>\n Manufacturers in Europe will be looking hard at the new models being paraded at the show because many of them will soon be arriving on their shores. Notable debuts at the show, which are soon likely to challenge with big numbers in Europe, include the BYD Seal and Sealion, the Leapmotor\/Stellantis B-series, Chery including its Omoda and Jaecoo brands, the MG 7 and the Nissan Urban. These include EVs, plug-in hybrids and extended-range EVs. Chery and JLR unveiled the new Freelander 8 for the China market, which might one day go on sale in Europe. This is expected to be an extended-range EV.<\/p>\n The show was also notable for the number of so-called \u201cSeries 9\u201d vehicles. In China, a “Series 9” vehicle is typically a brand’s top-tier, flagship model\u2014often a massive 7-seater SUV or luxury sedan\u2014designed to showcase the pinnacle of technology, comfort, and performance. <\/p>\n Launches include the XPeng GX<\/a>, NIO<\/a>\u2019s ES9, and Zeekr<\/a>\u2019s 9x. These vehicles are so huge and technology-laden they seem designed for the U.S. market, although its 100% tariff makes that unlikely at the moment. These upmarket behemoths might make Bentley, Aston Martin, Mercedes\u2019 Maybach, Range Rover and Lamborghini a little nervous.<\/p>\n And it\u2019s not just exports that will hit Europe. In a recent report, strategy consultants AlixPartners said Chinese automakers will nearly triple overseas production to 3.4 million vehicles by 2030, with Europe and Latin America as primary targets. <\/p>\n Accenture<\/a> Automotive & Mobility\u2019s Juergen Reers said Chinese manufacturers have now moved on to high-tech driver assistance. <\/p>\n \u201cWhat I see at this year\u2019s China Auto Show is how much the focus has shifted. Previously, the emphasis was on technical metrics such as battery capacity, charging, and drivetrain performance. Now, the intelligent vehicle is the central theme,\u201d Reers said in an email exchange.<\/p>\n A performer plays the violin next to a NIO ES9 on the opening day of the Beijing Auto Show in Beijing on April 24, 2026. (Photo by JADE GAO \/ AFP via Getty Images)<\/span><\/p>\n AFP via Getty Images<\/small><\/div>\n<\/div>\n<\/figure>\n “One of the biggest shifts this year is the democratization of features: what used to define premium vehicles, advanced features, intelligent systems, autonomous driving and high-end capabilities, is now rapidly moving into mass-market and smaller cars.\u201d <\/p>\n \u201cProduct differentiation today is no longer about access to technology, but about how well you execute and integrate it, while long-term profitability (manufacturers) increasingly defined by the full ownership experience, including software, digital services, updates and upgrades,\u201d he said.<\/p>\n Steve Young , managing director of British-based automotive retailing consultancy ICDP<\/a>, was last at a Chinese auto show 10 years ago where he said the quality was laughable. Not now. Every car felt solid. The cars and SUVs were now much bigger.<\/p>\n \u201cWithout smaller products, more suited to European road conditions, the advance of the Chinese will be constrained by product relevance,\u201d Young said in a report.<\/p>\n \u201cStyling is an area where we could perhaps also hope to see some more innovation. Most brands had models that looked like a Range Rover, a Defender and a Porsche Taycan. Will we get to a point where a Chinese brand comes up with a distinctive look that the other brands choose to take an inspiration for their next model? That would be a landmark moment without doubt,\u201d Young said. <\/p>\n Investment researcher Jefferies said because of weak demand now on the Chinese market, the show reflected the need for exports, the development of premium brands, and driver assistance systems becoming ubiquitous in cheaper models.<\/p>\n The wave of \u201c9-series\u201d flagships represented a decisive push by Chinese brands into the premium segment, Jefferies said in a report from the show \u2013 \u201cBigger Stage, Tougher Battles\u201d.<\/p>\n \u201cCompetition is shifting from brand-led to tech-led luxury, with LIDAR (for autonomous driving), air suspension, high-voltage platforms, and advanced chassis systems increasingly standard,\u201d the report said.<\/p>\n Zeekr 9X. (Photo by Tayfun Coskun\/Anadolu via Getty Images)<\/span><\/p>\n Anadolu via Getty Images<\/small><\/div>\n<\/div>\n<\/figure>\n \u201cAs Chinese (manufacturers) shift toward an overseas profit\u2011led phase by 2026, global strategy is evolving from vehicle exports to integrated operations, with leaders such as BYD, Geely, and Chery showcasing full ecosystems spanning brand portfolios, electric powertrain systems, charging and energy solutions,\u201d according to the report.<\/p>\n Accenture\u2019s Reers said the role of foreign manufacturers in China was changing as they lost market share to locals. Where once they were the teachers, the roles had now reversed. <\/p>\n \u201cLooking at multinational companies, I see a strong push toward localization in China. They are investing heavily in innovation, design and engineering capabilities to better understand local customer preferences and to become more integrated into the Chinese market. At the same time, they are learning from \u201cChina speed\u201d in development processes, and they are applying these learnings globally. China is not only a key market but also an important innovation hub and export base,\u201d Reers said.<\/p>\n This is a big problem for the German industry in particular. Professor Ferdinand Dudenhoeffer, director of Germany\u2019s Center for Automotive Research<\/a>, said in a recent report German automakers\u2019 sales in China had slipped from 4.8 million to 3.9 million in three years.<\/p>\n \u201cThe existing business model \u2013 developing cars in Germany and then building them in China with a slightly longer wheelbase – is increasingly problematic – too slow, too expensive, and not innovative enough. VW has taken a major step forward towards a new business model with its \u201cIn China for China\u201d strategy. The year 2026 will be a kind of litmus test for the strategy.\u201d Dudenhoeffer said.<\/p>\n \u201cMercedes is relocating larger portions of its value creation to China. A kind of small \u201cIn China for China movement. BMW, for now, is sticking to the traditional approach with its new EVs,\u201d Dudenhoeffer said. <\/p>\n<\/div>\nDestined for the U.S. market, eventually?<\/h2>\n
Too big for Europe?<\/h2>\n
Role reversal<\/h2>\n