Once upon a time the premium or luxury vehicle segment was dominated by Germany’s BMW, Mercedes-Benz and Volkswagen’s Audi and of course Porsche, whose decades of brand heritage carried far more weight than American, Japanese and Korean brands.

Then in the past 6 to 5 years there was a teutonic shift that started in China, where car consumers placed greater emphasis on technology features. When China ‘sneezes’ the world feels it and now technology and software defines the ‘premiumness‘ of a new car.

Typically, a German or British 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. However, luxury has been redefined in the past few years by Chinese automakers.

During Aito’s unveiling of four electric SUVs, Seres Vice President Clifford Kang, representing the brand’s parent company, highlighted its “intelligent technology”. An accompanying video showed Aito vehicles automatically swerving to avoid obstacles or carrying a tower of full champagne glasses on the hood without spilling a drop.

Aito’s philosophy, Kang said, is “intelligence redefining luxury”.

Brad Kuntz, a partner at consultancy Grant Thornton Stax, said Chinese automakers are reshaping what luxury means for some consumers.

“You’ve got that old bespoke luxury of European cars of years ago,” he said. “But in ​the EV world you’ve got more of the ​elegance being built in from a technology standpoint.”

European premium brands are watching the newcomers closely and playing catch up without saying it.

“Audi is confidently embracing growing international competition, including from China,” a spokesperson said. “It is the task of European policymakers to ensure fair competitive conditions in Europe.”

Top-end brands such as Volkswagen’s Bentley appear unfazed but boardroom worry is rising.

During the unveiling of Bentley’s first EV last month, ​CEO Frank‑Steffen Walliser told reporters that real luxury comes from the “heart of Europe” and is irreplaceable. Does he understand how the premium segment is changing?

Speaking on condition of anonymity, an executive ​at a major Chinese automaker acknowledged the challenge. “Deep down in my heart, we still have a gap between us and those European luxury brands,” he said. But not for long!

But he added that Chinese automakers like Li Auto, Yangwang and Denza should be able to catch up “within a year or less”. For now, Chinese premium sales remain a tiny share of Europe’s market, though they are growing rapidly.

Zeekr’s European sales more than tripled to 9,525 vehicles in the first nine months of 2026 from ​3,025 a year earlier. Having entered 22 European markets, Zeekr plans to expand into another eight this year, ​European CEO Lothar Schupet said.

“Our starting point where we are now is very strong and we will keep on accelerating,” he said.

Avatr’s Li said the brand plans a gradual expansion across Europe, starting with Spain, Britain and Denmark ​in 2027, followed by Germany and a handful of other countries in 2028.

“We have only one chance to get this right,” he said.

With domestic vehicle sales in China falling 20% in the first half of 2026 ​and competition intensifying, Chinese automakers like VOYAH 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 Xpeng with its GX Flagship have already gained share from German premium rivals in China with lower-priced models packed with technology features.