After 128 years, the narrative at the Paris Motor Show—a long-standing automotive landmark—is being rewritten by Chinese carmakers.
On October 12, 2026, the 91st Paris Motor Show opened its doors at the Paris Expo Porte de Versailles, bringing together over 60 automotive manufacturers and more than 100 exhibitors from around the globe.
According to the organizers, 16 Chinese automotive companies—representing 25 different brands—are participating in this year’s event, marking a new record in terms of scale.
Numerous new models are making their European debuts, alongside a showcase of innovations in areas such as power batteries, ultra-fast charging, intelligent driving, and artificial intelligence.
Meanwhile, long-time fixtures of the auto show—such as BMW, Nissan, Mazda, and Jaguar Land Rover—are all notably absent this year. This shift in participation is quietly reshaping the landscape of this century-old exhibition.
“In just two years, Chinese automakers have reached a new level. They are no longer bringing just competitive electric vehicles; they now offer a more comprehensive and diverse product lineup,” remarked Serge Gachot, the organizer of the Paris Motor Show, in an interview with the media on the eve of the event—candidly sharing his observations on the evolution of Chinese car manufacturers.
On the very day the Paris Motor Show opened, the China Association of Automobile Manufacturers (CAAM) released new data: in September, China’s automobile exports reached 1.053 million units—an increase of 4.2% month-on-month and 61.4% year-on-year. For the first nine months of the year, cumulative exports totaled 8.205 million units, up 65.8% year-on-year. Based on this trajectory, total annual exports are expected to approach 10 million units.
However, a surge in export volume does not mean the outcome of the globalization race has been decided. Trade barriers are rising, and Europe is imposing increasingly stringent requirements for local manufacturing. Establishing overseas production facilities, localizing supply chains, building brands, and ensuring long-term profitability—each of these represents a formidable challenge.
The transition from a major exporter of automobiles to an automotive powerhouse is not merely a contest of sales figures; it is a rigorous test of one’s ability to take root in global markets and integrate into the international division of labor.
Perhaps, in the wake of the Paris Motor Show, a more profound journey toward globalization is only just beginning.
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Chinese Brands Breathe New Life into Long-Established Auto Shows
The significant presence of Chinese automotive brands at this year’s Paris Motor Show reflects a shift in how Chinese automakers approach such exhibitions. Rather than merely showcasing products, they are now presenting comprehensive strategies that encompass diverse powertrain options, localized production plans, and the development of distribution channels.
XPeng Motors serves as a representative example. On October 7, the company announced that the first pilot vehicle of its new-generation flagship SUV, the G9L, had rolled off the assembly line at the Magna vehicle manufacturing plant in Graz, Austria.
According to the company’s plans, this G9L—produced in Europe—will travel 1,324 kilometers from Austria to Paris, where it will be officially unveiled to the world at the Paris Motor Show. The G9L is the fourth model, following the G6, G9, and P7+, that XPeng has moved into production in Austria.
This highlights a new operational model: leveraging existing European manufacturing resources to integrate the product development and intelligent technology capabilities of Chinese automakers with established local vehicle production systems.
GAC Group’s approach at this year’s Paris Motor Show reflects a similar trajectory. The company unveiled the AION UT Cross—a model developed specifically for the European market—while simultaneously announcing a deep localization strategy for Europe and a new global service brand. Regarding its supply chain, GAC stated that it intends to collaborate with long-standing partners such as Bosch, ZF, Michelin, and Valeo to build a localized supply chain within Europe.
Meanwhile, traditional European automakers are actively engaging with Chinese brands to enhance the R&D efficiency and cost-competitiveness of their own electric vehicle offerings.
At the Paris Motor Show, Emanuele Cappellano, Chief Operating Officer for the European region at automotive giant Stellantis, highlighted the company’s key Chinese partner, Leapmotor, while presenting its lineup.
Prior to this, Stellantis had strengthened its partnership with Dongfeng Motor in Europe, signing a non-binding memorandum of understanding in May. Under this agreement, the two parties expressed an intent to establish a joint venture in Europe, which would oversee the sales and distribution of Lantu (Voyah) vehicles in designated European markets.
A remark by François Roudier, Secretary General of the International Organization of Motor Vehicle Manufacturers (OICA), captures the sentiment well: the arrival of Chinese brands has breathed new life into this long-established, yet recently somewhat lackluster, auto show.
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A “Yaris Moment”
The presence of Chinese automakers at the Paris Motor Show reflects a series of pragmatic market adjustments.
In response to the European Union’s tariff policies and the diverse needs of European consumers, Chinese car manufacturers have adopted a multi-powertrain product strategy—simultaneously advancing pure electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), extended-range electric vehicles (EREVs), and highly efficient internal combustion engine models.
There has also been a significant shift in product development. Previously, when entering overseas markets, Chinese automakers typically adapted existing domestic models; today, an increasing number of companies are developing new vehicles from the ground up, specifically tailored to the aesthetic preferences, usage habits, and market environments of local consumers.
Pedro Pacheco, an analyst at the international consultancy Gartner, describes this trend as the “Yaris moment” for the Chinese automotive industry. In 1999, Toyota launched the Yaris hatchback, designed specifically for European consumer needs—a localized product strategy that successfully opened up the European market.
According to Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), the ability of Chinese automakers to achieve such a high degree of localization and scale stems from the robust growth in new energy vehicle (NEV) exports, combined with the synergistic benefits of a mature industrial base, a vast market, and supportive policies.
Meanwhile, traditional automakers from Europe, the United States, and Japan are currently navigating the transition toward electrification. Faced with high costs—such as those involved in restructuring domestic supply chains—they struggle, in the short term, to offer products that combine high cost-effectiveness with advanced intelligence.
In contrast, China has established a significant scale advantage in key NEV sectors, including power batteries and electric drive systems, while building a comprehensive industrial support ecosystem.
The Global EV Outlook 2026, published by the International Energy Agency (IEA), highlights China’s pivotal role in the global electric vehicle manufacturing and power battery supply chain—notably in battery cell production and the processing of critical raw materials, where the country maintains a distinct advantage in terms of scale.
Once advantages in the industrial chain and technology are established, the expansion of Chinese automotive companies into overseas markets shifts from the simple export of complete vehicles to the export of standards and industrial ecosystems.
In the realm of technical standards, some Chinese automakers are actively participating in the development of standards within their target local markets. For instance, Chery has established a comprehensive new energy ecosystem in Indonesia—encompassing R&D, manufacturing, and charging infrastructure—while also playing an active role in shaping local charging standards.
BYD’s operations in Brazil serve as another prime example. Moving beyond the mere export of vehicles, the company is integrating more segments of the industrial chain into the local market—ranging from the manufacturing of complete vehicles and electric bus/truck chassis to the development of a local supplier network.
As Chinese automakers accelerate their entry into the European market, the relationship between the European automotive industry and its Chinese competitors is evolving from pure product-based competition toward collaboration in manufacturing and technology.
Facing challenges such as low capacity utilization and rising costs associated with the transition to electrification, some European manufacturers have begun sharing production resources with partners, including Chinese automakers. In recent years, there has been a growing number of collaborations covering areas such as contract manufacturing, platform technology, and distribution channels.
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The test of globalization has leveled up.
Chinese automakers at the Paris Motor Show have garnered unprecedented attention. Yet, applause and barriers are often two sides of the same coin.
On the eve of the Paris Motor Show, the French government reiterated its commitment to strengthening “Made in Europe,” advocating for a closer link between automotive industry support policies and local European production, employment, and value creation within the supply chain.
On October 11, at the “For Europe” event held in Paris, Volkswagen Group CEO Oliver Blume stated that the transformation of the European automotive industry requires a shared responsibility between companies and policymakers.
While he supports incentives that favor local European manufacturing, he also emphasized that European automakers must enhance their own competitiveness.
“In the past, exporting cars was an uphill battle—a strenuous climb. Now, it’s like moving downhill—far more efficient and effective. A generational technological advantage has given Chinese automakers the confidence they need. However, the core challenge for this next phase lies in finding a balance between navigating trade barriers and managing geopolitical complexities,” says Zhang Yongwei, Chairman of the China EV100 (EV100) Research Institute.
External barriers represent a critical test for the globalization of the Chinese automotive industry. Yet, the challenge of truly winning over consumers, establishing robust operational systems, and achieving long-term profitability is even greater than simply opening the doors to overseas markets.
A survey conducted in the German market sheds light on the current reality facing Chinese automotive brands. In March 2026, the German market research firm Civey, in collaboration with Automobilwoche, surveyed approximately 5,000 German residents.
The results show that BYD has achieved a brand awareness level of 64%—significantly higher than the 26% recorded by another well-known automotive brand—while awareness of other Chinese automotive brands remains relatively limited.
Beyond brand awareness lies the test of trust. An automobile is not a one-time consumer purchase, but a durable good that requires long-term service and support.
While some companies may rapidly penetrate overseas markets through dealership networks or parallel export channels, issues such as poor vehicle reliability, delays in spare parts supply, or inadequate after-sales support can quickly erode consumer trust in Chinese vehicles—ultimately damaging the collective reputation of all Chinese automotive brands.
An increase in export volume does not automatically translate to higher profitability for overseas operations. Moving a vehicle from a domestic factory to an international market involves a complex chain of processes, including logistics, regulatory certification, distribution, marketing, and after-sales service.
Chinese automotive exporters must avoid falling into a trap where rising sales abroad are accompanied by shrinking profit margins. A deeper challenge—beyond these operational hurdles—is learning to navigate the distinct regulatory and business environments of different markets.
Currently, automotive industrial policy in Europe is increasingly shifting toward local manufacturing and supply chain security. Through initiatives like the “Industrial Accelerator Act,” the European Union aims to strengthen its domestic industrial base by mandating local production and industrial support—imposing stricter localization requirements on critical components, such as electric vehicle batteries.
Against this backdrop, on September 1, 2026, the Ministry of Commerce, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation jointly issued the Guidelines for Overseas Competitive Conduct and Compliance in the Automotive Industry (referred to as the “Automotive Guidelines”).
Zhang Hong, a member of the Expert Committee of the China Automobile Dealers Association, notes that the significance of these Guidelines lies in establishing clear rules for Chinese automakers expanding abroad. They encourage companies to shift their focus from merely “selling cars” to “establishing deep roots” in overseas markets—integrating their pricing strategies, distribution channels, brand presence, and compliance systems.
From selling vehicles to manufacturing them, and from simply entering a market to becoming an integral part of its industrial ecosystem—the challenge of globalization for the Chinese automotive industry is evolving. Lu Fang, Chairman and Party Secretary of Lantu Automobile Technology Co., Ltd. (VOYAH), summarizes this progression in three stages: first, “going out” (exporting); second, “moving up” (enhancing value and brand standing); and finally, “integrating in” (becoming deeply embedded in the local market).
The Paris Motor Show has showcased the speed at which Chinese automakers are expanding globally; however, the long-term global competition that lies ahead will truly test the depth with which they can take root around the world.
