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European EVs China
Marko Lubar
Posted on - 24 August 2026

For the past few years, we’ve spent a lot of time talking about Chinese EVs coming to Europe. BYD, Xpeng, Zeekr, Leapmotor and a growing list of other brands are all looking for a bigger share of the European market. But the traffic goes both ways.

China remains the world’s biggest EV market, and European carmakers are now trying to rebuild their position there with a new generation of electric vehicles. In 2025, China was the fifth largest market for EU vehicle exports, while Chinese made cars accounted for 20% of all EVs sold in the EU, according to ACEA’s latest data on EU-China vehicle trade.

The interesting part is how European manufacturers are approaching the challenge. BMW, Mercedes-Benz, Volkswagen and Audi are all bringing new EVs to China, but many of these cars are no longer simply European models adapted for another market. They are being developed specifically with Chinese buyers in mind, often with local partners involved in the development process.

That urgency isn’t coming from nowhere. These are brands that spent years living off reputations built decades ago, and the market share and profit losses that followed have forced their hand. Turning that around quickly isn’t easy for companies this size, though: they’re large, established organisations built around slow product cycles, not the kind of agility Chinese EV makers have shown.

BMW iX3 And i3: Neue Klasse, China Edition

BMW is probably the clearest example of how the approach to China is changing. The new BMW iX3 and BMW i3 are among the first Neue Klasse models built specifically for the Chinese market. Both are being offered in long wheelbase versions, reflecting the importance Chinese buyers place on rear seat space. BMW has also developed China specific digital features and driver assistance systems for the cars.

European EVs China
BMW iX3 (Credit: BMW)

The iX3 is particularly interesting. BMW’s Chinese version measures 4,885 mm in length and has a 3,005 mm wheelbase (vs 4,782 mm length and 2,897 mm wheelbase in Europe). Underneath, it uses BMW’s new Neue Klasse architecture and sixth generation eDrive technology. But the bigger story is not the battery or the electric motors, it’s where the car was developed and who it was developed for.

BMW has described the approach as “In China, for China, and with China,” which is a significant departure from simply taking a model built for Europe and adapting it for another market. The new i3 follows the same idea in the sedan segment. Together, the two models give BMW a new electric starting point in China at a time when the brand needs to rebuild its position in the world’s most competitive EV market.

Mercedes-Benz Is Going After China’s Luxury Buyers

Mercedes-Benz is taking a somewhat different route. Rather than building a dedicated new platform or a standalone sub brand the way BMW and Audi have, it’s mainly stretching and adapting existing models for Chinese buyers, alongside bringing over products it already sells elsewhere.

One of the most important additions is the electric GLC L, a long wheelbase version built for the Chinese market and offered in five and six seat configurations, reflecting local preferences that don’t always translate directly to European buyers.

Mercedes-Benz has also introduced the electric CLA 260 L in China and is preparing further models aimed at Chinese buyers. Then there is the Mercedes-Benz VLE, which appeared in the latest MIIT filings. The large electric MPV measures more than 5.3 metres in length and has a 3,340 mm wheelbase. The Chinese filing shows both single and dual motor versions, while the interior is configured around the kind of rear seat comfort that has become increasingly important in China’s premium vehicle market.

Unlike the GLC L, the VLE isn’t exclusive to China: Mercedes-Benz already sells it in Europe too. Its positioning here still shows how the German manufacturer is adapting its electric lineup to segments where domestic manufacturers have become particularly strong.

Volkswagen Is Taking the Biggest Gamble

Volkswagen arguably has the most work to do. The German giant spent decades building one of the strongest foreign automotive positions in China, but its traditional strengths have become less effective as Chinese buyers have moved rapidly towards EVs and software heavy vehicles. I’ve already looked at how serious that problem has become in Volkswagen’s China deliveries decline and future plan, and the answer is a huge product offensive. Volkswagen says it will introduce 13 new NEV models in China by the end of this year, covering battery electric, plug in hybrid and range extender vehicles, with that number expected to eventually grow to more than 30.

European EVs China
ID.ERA 5X (Credit: Volkswagen)

One of the most interesting products in that offensive is the Volkswagen ID.ERA 5X, which appeared in the latest MIIT filings. The 5X is a relatively compact electric SUV with a 2,815 mm wheelbase. It will be produced by SAIC Volkswagen and use the new China Main Platform, or CMP, developed jointly by Volkswagen and Xpeng.

That’s important because the company’s existing MEB based EVs have struggled to keep pace with Chinese competitors in areas such as software, pricing and the speed of development. CMP is Volkswagen’s attempt to address some of those weaknesses with a platform designed around the Chinese market rather than simply adapted to it. The ID.ERA 5X is only part of the plan. The company has already shown the ID.AURA, ID.ERA and ID.EVO concepts, which preview production models built around the needs of Chinese customers. Volkswagen says those concepts will form part of its wider China roadmap.

Audi Is Taking an Even Bigger Step

Audi’s approach may be the most radical of the four: rather than simply adapting its existing range, Audi has created a new China focused brand called AUDI together with SAIC, swapping its iconic four rings for a simpler wordmark spelled out in capital letters. I’m not really convinced that a simple rebadge can work miracles for sales instead of building truly good EVs, though.

The first production model was the AUDI E5 Sportback, which launched in China in August last year. It is followed by the AUDI E7X, a large electric SUV unveiled at Auto China 2026. By European standards, the E7X is a big car: it measures 5,049 mm in length and has a 3,060 mm wheelbase. System power ranges from 300 kW to 500 kW across the five trims, and the range topping version, with a 109 kWh battery, offers more than 750 km of CLTC range.

But, once again, the numbers aren’t the most interesting part: the AUDI brand was created specifically for China and is built around the Advanced Digitized Platform jointly developed with SAIC. The E7X includes features such as an AI powered assistant, rear seat entertainment and zero gravity seats, all aimed at expectations that are increasingly common among Chinese premium car buyers. The E5 Sportback has already been named China’s 2026 Car of the Year, giving Audi some early evidence that this different approach can work.

The E7X is the second production model, and Audi says a third model is planned for 2027. The company and SAIC also plan four additional models based on the next generation of that same platform. That’s a much more aggressive China strategy than simply adding another electric Audi to the existing lineup. The E7X also happens to be part of a much bigger story about the competition in China’s electric SUV market, which I covered in Tesla Model Y’s new rivals in China.

Porsche Is Playing an Entirely Different Game

Porsche’s approach looks nothing like the others. China sales peaked at 96,000 cars in 2022 and fell to 42,000 in 2025, and the slide continued into 2026, with the first half down 32% to just 14,501 vehicles. Porsche is responding by shrinking rather than localising: its dealer network is being cut from around 150 outlets to roughly 80 by the end of this year, and the company has explicitly ruled out building cars locally, ruled out shipping in knock down kits, and ruled out launching a second, China only brand the way Audi has with AUDI.

(Credit: automobilimotors.com)

What Porsche is doing instead is investing in software. A research and development centre opened in Shanghai in November 2025, staffed with more than 300 engineers, aimed squarely at the infotainment and digital features where Porsche’s own China boss has openly admitted domestic brands are now ahead. Executives have called the plan “Winning Back China,” though even Porsche concedes it won’t return to its old sales volumes. The company is sticking with a value oriented approach instead, deliberately supplying below demand to protect pricing rather than chasing units, which is also why the all electric Cayenne Turbo and Cayenne Turbo Coupé are being rolled out market by market rather than all at once, with Chinese deliveries beginning this year at prices starting around €143,100 and €148,200 (¥1.118 million and ¥1.158 million). On overboost it produces up to 850kW, making it the most powerful Porsche ever built.

At that price, it’s still very much a halo car for brand image rather than something that moves overall sales, but Porsche has decided not to fight this battle the way BMW, Mercedes, Volkswagen and Audi are fighting it.

Stellantis Is Joining the Fight, but It’s Still Early

Stellantis is not yet in the same position as BMW, Volkswagen or Audi when it comes to its latest China specific EVs, but it has now made a concrete move that is too significant to ignore. In May, Stellantis and Dongfeng announced that they would strengthen their long running DPCA joint venture in China. The plan calls for the Wuhan plant to produce two all new Peugeot branded EVs from 2027, based on the design language of Peugeot concepts shown at the 2026 Beijing Auto Show. The agreement also covers two new Jeep branded EVs for global markets.

The production models have not yet been revealed in enough detail to name them individually, so they don’t really belong on this list, but the strategy is significant. Stellantis is effectively using its Chinese partnership to develop and manufacture new electric products for China rather than simply trying to revive the existing European lineup, and that puts Peugeot and Jeep on a path similar to the one Volkswagen and Audi are already taking: local development, local production and a much closer relationship with Chinese partners.

It is also a reminder that the European response is slow, even sluggish, compared to the Chinese manufacturers’ pace. The response is also still taking shape: some manufacturers already have cars on the road, while others are only now preparing their next generation of China focused EVs.

FAQ

Which new European electric models are launching in China?
BMW’s Neue Klasse iX3 and i3, Mercedes-Benz’s GLC L, CLA 260 L and VLE, Volkswagen’s ID.ERA 5X, Audi’s AUDI E7X, Porsche’s electric Cayenne Turbo, and upcoming Peugeot and Jeep models from Stellantis’s Dongfeng joint venture have all recently launched or appeared in Chinese type approval filings.

Why are European car sales falling in China?
Because domestic Chinese brands like BYD and Geely have taken market share with faster designed, more locally tailored electric vehicles.

Is AUDI the same as Audi in China?
No, AUDI is a China exclusive electric sub brand built with SAIC that uses a four letter wordmark instead of the four rings. It’s separate from the traditional Audi brand, which still sells combustion and hybrid models like the A6L through a different joint venture with FAW.

What is Stellantis doing in China?
Stellantis and Dongfeng announced in May 2026 that they would strengthen their existing DPCA joint venture, with plans for two new Peugeot electric models to be built in Wuhan from 2027, alongside two Jeep branded EVs aimed at global markets.

Featured Image: Mercedes-Benz

Marko Lubar is the Founder and Editor of ElectricFleet Online, where he covers the latest developments in electric vehicles, battery innovation, autonomous driving, artificial intelligence, and the technologies shaping the future of mobility.

Learn more about Marko and the mission behind ElectricFleet Online on the About Us page.

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