Chinese EV brands aim to rival European luxury marques, Zeekr executive says

Chinese electric vehicle brands are poised to challenge the dominance of European luxury automakers, leveraging technological advantages to capture a growing segment of the market, according to Zeekr vice-president Mars Chen.

Chen highlighted a gap between demand for electric luxury cars and current supply, where Chinese carmakers hold a competitive advantage. He predicted that within the next few years, one to two Chinese brands would secure positions among the world's top five luxury vehicle makers.

The comments come as traditional German luxury leaders Mercedes-Benz, BMW, and Audi struggle with electrification. The trio posted global year-on-year sales declines of up to 6% in the first quarter of 2024, eroding their once-dominant position in China's luxury car market, where they previously commanded as much as 90%.

Data from the China Passenger Car Association underscores the shift: domestic brands now account for over half of all cars sold in China priced at 400,000 yuan (US$59,000) or more. Last year, five bestselling large SUVs in China were all Chinese models from Li Auto, Seres, and Xiaomi.