For decades, European luxury brands such as BMW, Mercedes-Benz, and Audi dominated the market with their luxury vehicles, setting standards for design, performance, and technological advancement. Then, the Chinese automotive phenomenon, particularly electric vehicles, began to dominate the market, fiercely competing with these German manufacturers in terms of pricing, sophistication, and luxury. Brands such as Hongqi, NIO, and Zeekr produce luxury vehicles that rival European luxury cars in design, comfort, and innovation, at much lower prices. Thanks to advanced technology, luxurious interiors, and a strong focus on electric vehicles, Chinese luxury cars have become a strong alternative to established brands.
Top Chinese luxury cars that compete with Mercedes and BMW
Hongqi E-HS9 Rolls-Royce Electric China
Hongqi, China's oldest luxury car brand, is known for producing official limousines. In recent years, Hongqi launched the E-HS9 electric version in the UAE, reminiscent of the Rolls-Royce Cullinan. It features six seats in a stunning interior that exudes luxury thanks to its luxurious leather upholstery and high-quality materials, such as wood, large screens, and interior lighting. It is powered by two electric motors generating 543 horsepower and 750 Nm of torque.
The Nio ET5 is a mid-size luxury sedan.
Among its most notable features are:
• Smooth, sleek design with integrated door handles
• Panoramic glass roof
• Sports car styling with frameless windows and an aggressive front end with a front blade
• Soft-close door system
These features are reminiscent of Audi and Mercedes mid-size sports cars. What sets it apart is its electric range of approximately 1,000 kilometers, thanks to an electric motor producing 483 horsepower. This is in addition to the advancements it offers, such as autonomous driving technology.
Zeekr 001
A car that closes its doors on its own, offering a luxurious experience thanks to a massive infotainment system that offers voice assistance, many options of engine sounds to remind you of a sporty experience, interior lighting with luxurious sports seats, and an outstanding acceleration. It comes with a 544-horsepower electric motor, enough to take your breath away when you activate its Sport mode.
Avatr 11 and 12
I couldn't choose just one for you from Avatr line-up, as they are so beautiful and luxurious. Avatr cars offer a futuristic experience. Their designs are simply a matter of looking at them, and they are famous for their ability to park themselves thanks to their technological advancements, including autonomous driving. Their interior includes a steering wheel reminiscent of a spaceship. There are no buttons inside, just a screen, so your eyes can rest comfortably while looking around.
Why are Chinese luxury cars gaining increasing popularity?
Chinese luxury brands are gaining increasing popularity for several reasons:
• Technology and innovation: Their features, powered by artificial intelligence, facial recognition technology, and advanced autonomous driving, give them an edge over many European competitors.
• Competitive pricing: More features for less than traditional luxury brands.
• Luxurious interiors: Premium materials, ambient lighting, premium leather seats, sunroofs, large screens with advanced voice assistance systems, and many other innovations. For example, Skywheel cars offer reclining seats that can be used as sleeping chairs, but an electric car is a special feature.
• Electric vehicle dominance: With their strong focus on electric vehicles, Chinese luxury brands are setting the course for the future of mobility.
As Chinese automakers continue to develop their skills, they are proving their ability to compete with—and even surpass—European luxury brands in many areas. While European brands remain strong competitors, the luxury car market in China is rapidly evolving, thanks to advanced technology, luxurious interiors, and competitive pricing. In the coming years, we may see further expansion of Chinese brands into global markets, offering buyers a new alternative to traditional luxury.

Adrian is an Editor. Psychology graduate with over 4 years in the automotive industry, 3 in front of the camera. Occasionally seen at his family owned tyre shop. He will only buy cars that pass the big bottle test.