On October 12, Seres' share price soared to its daily limit in the afternoon session, closing at RMB 51.24 with a total trading volume surpassing RMB 2.3 billion.

Earlier that day, the announcement that AITO would make its European debut by 2027 garnered widespread attention. According to the plan, four SUV models—AITO 6, 7, 8, and 9—have commenced the EU whole vehicle type approval process and made their group premiere at the Paris Auto Show.

In the evening, AITO officially announced in Paris that its initial batch of models is set to enter the European market in autumn 2027.

This European expansion news was perceived by the market as a major catalyst for Seres' share price surge that day. However, Seres is merely one aspect of the accelerated global push by Chinese automakers showcased at the Paris Auto Show.

Held from October 12 to 18, this year's Paris Auto Show featured around 20 Chinese automotive brands, double the number from 2024, as reported by Reuters.

From established automakers such as BYD, Chery, and Geely to emerging players like Leapmotor, XPENG, and Li Auto, along with Changan's sub-brands Deepal, Qiyuan, and Avatr, Chinese brands now span multiple mainstream market segments.

Behind this intensive participation, the competitive landscape for Chinese automakers in Europe has evolved. While new models remain essential, investments in factories, distribution networks, after-sales service, and regulatory compliance beyond the show floor now determine who can truly establish a lasting foothold in Europe.

Global Expansion into Europe Intensifies

Chinese automotive growth in Europe is already evident in sales data.

Data from the European Automobile Manufacturers' Association indicates that from January to August 2026, new vehicle registrations in the EU rose by 5.3% year-on-year to 7.5464 million units. Among Chinese automakers, BYD, Chery, and Leapmotor witnessed particularly remarkable growth, with registrations reaching 177,800, 116,300, and 62,500 units, respectively—up 163%, 250.9%, and 426.8% year-on-year.

Shifts in Europe's automotive consumption patterns have created opportunities.

From January to August 2026, battery electric vehicles (BEVs) accounted for 21.7% of new EU vehicle registrations, while plug-in hybrid electric vehicles (PHEVs) made up 10%, collectively comprising nearly one-third of the market. For Chinese automakers, this signifies market acceptance not only for BEVs but also for PHEVs and extended-range electric vehicles (EREVs).

Product strategies at the Paris Auto Show align with this structural transformation.

BYD displayed a diverse range of vehicles, including BEVs, PHEVs, and pickups. Notably, the DOLPHIN G DM-i represents its first model specifically tailored for Europe, while the SHARK DMO introduces hybrid technology to the European pickup market.

Having built a broad domestic product portfolio, BYD is now customizing its offerings to European consumers' preferences for vehicle size, powertrain, and usage scenarios, rather than merely replicating domestic models.

Chery primarily showcased its OMODA and JAECOO brands, featuring hybrid and plug-in hybrid models. Geely presented models such as the MONJARO EM-i, E2, and E5, while Lynk & Co displayed BEV and PHEV products. Changan's Deepal, Qiyuan, and Avatr also made joint appearances. SAIC MAXUS and Foton extended their participation to include pickups and light commercial vehicles.

Among the emerging players, Leapmotor unveiled its compact BEV B03 and flagship SUV D19 in Paris. The B03 targets Europe's urban microcar segment, while the D19 aims to elevate the brand's positioning. Despite still-limited sales volume, Leapmotor is simultaneously entering both high-volume and premium segments, attempting to shorten the transition from single-model exports to a comprehensive product lineup.

XPENG globally premiered its flagship SUV G9L in Paris, announcing European pricing and opening orders simultaneously. Another SUV coupe, the L03, is set to commence deliveries in Europe soon. Combined with existing models G6, G9, P7+, and X9 already in the market, XPENG is expanding its European lineup across more price points and vehicle sizes.

Li Auto also announced a more specific European product plan. The Li 6 is scheduled to launch in Norway and the Netherlands in Q1 2027 before expanding to other European markets. The company plans to simultaneously introduce BEV and EREV models locally.

The growing variety of models indicates that Chinese automakers are no longer content with merely establishing a brand presence in Europe. They are now competing across segments including compact cars, family SUVs, premium vehicles, and commercial vehicles, with competition expanding from a few star models to direct clashes in product mix and price bands.

From Exports to Local Production

While new showroom models can be introduced swiftly, production and distribution systems cannot simply replicate domestic approaches. This marks a more significant shift at this year's Paris Auto Show—Chinese automakers are now establishing manufacturing operations in Europe.

Leapmotor confirmed during the show that the B10 is already in production at Stellantis' Zaragoza plant in Spain.

Leveraging Stellantis' manufacturing, sales, and service resources, Leapmotor bypassed the lengthy timeline required for self-built factories. In return, the joint venture Leapmotor International is 51% owned by Stellantis and 49% by Leapmotor, granting the former faster European market access while ceding some overseas operational control.

XPENG opted for a different strategy, partnering with Magna for contract manufacturing to enter Europe through an established supply chain while reducing initial investment. Local production commenced in Graz, Austria, in Q3 2025, with the G6, G9, and P7+ already in production and the G9L set to become the fourth European-made model.

BYD, already operating at a larger sales scale, is making heavier investments. Its Hungarian factory is expected to start production in Q4 2026, with the company also exploring potential factory construction in France and planning further European capacity expansion. Through local manufacturing, BYD aims to reduce tariff and transportation costs, though new capacity requires sustained European sales growth to absorb.

GAC Motor is also utilizing Magna's European production capacity for locally sold models while planning to expand its product lineup and distribution network.

For Chinese automakers that have initiated local production, capacity activation is just the beginning. Whether European sales can keep pace will directly impact local manufacturing costs and efficiency.

Competition Deepens Local Engagement

While local production alleviates tariff pressures, Chinese automakers must still navigate evolving trade regulations, further deepening their ties to the European market.

On October 12, China's Ministry of Commerce revealed that China and the EU recently reached multiple consensus on hybrid and electric vehicle trade.

For hybrid vehicles, both sides confirmed three principles—respecting facts, non-discrimination, and compliance with WTO rules—and made "upward arrangements" based on 2025 export volumes.

After BEVs faced additional tariffs, hybrid models have become a crucial channel for Chinese automakers to expand European sales, with the specific implementation of subsequent arrangements set to influence this growth space.

Beyond policies, distribution networks now pose a more direct challenge.

Chery's OMODA and JAECOO brands entered France in April 2026, establishing 120 dealerships by late July and planning to expand to 130 by year-end while integrating local financial, leasing, logistics, and roadside assistance systems.

Selling vehicles represents just the first transaction step. Repair accessibility, insurance costs, and residual values all influence whether consumers will repurchase Chinese brands.

Technological advantages also require re-validation in Europe.

XPENG set up an intelligent driving experience zone at the Paris Auto Show, offering NGP test rides at scale outside China for the first time. The company reported that overseas markets contributed about 25% of revenue in H1 2026, with average overseas vehicle prices exceeding €40,000.

This pricing places XPENG in direct competition with Europe's mainstream premium brands, with consumers now comparing it against Volkswagen, BMW, Mercedes-Benz, and Tesla rather than other Chinese brands.

However, European automakers are also proactively reducing EV prices, narrowing the low-cost space available to Chinese competitors.

Citroën unveiled the 2 CV concept car in Paris, announcing plans to launch a European-made compact EV priced around €15,000 by 2028.

Seres' share price surge reflects capital market imagination about European growth. The Paris Auto Show, however, reveals that such growth is becoming increasingly costly.

Models require redevelopment, factories need continuous operation, dealership and after-sales systems demand long-term investment, and technological advantages must translate into prices local consumers are willing to pay.

The number of Chinese brands on display no longer adequately measures true global expansion progress. Going forward, key differentiators will include European delivery volumes, factory utilization rates, distribution efficiency, and per-unit profitability. Only when these metrics stabilize will the Paris Auto Show excitement translate into sustainable market share for Chinese automakers in Europe.