Chinese autonomous car firms rush into Europe

Chinese self-driving tech firms blocked from the U.S. market are moving fast into Europe, opening offices, signing data deals and testing cars on European roads.

This has triggered warnings from local rivals about the scale of competition. In China, the world’s biggest car market, more than half of cars sold, including many low-cost models, now come with autonomous driving features as standard.

QCraft, a Beijing startup making driver-assistance systems, is already working with Chinese and European automakers and plans to start selling its tech in Europe within two years. Its Level‑4 autonomous buses, which can run for long periods without human control, are already operating in 26 Chinese cities.

Deeproute.ai, another Chinese supplier of Level‑4 systems, says it will build a European data center once it closes the deals now under discussion with carmakers in both regions.

Momenta, a leading Chinese autonomous-tech company that supplies Toyota and General Motors, has teamed up with Uber to start testing Level‑4 technology in Germany next year. In September, Momenta announced it would supply driver-assistance systems for Mercedes-Benz in China starting with the electric CLA sedan.

Two sources allegedly told Reuters that Mercedes is already testing the same technology in Europe. While advanced driver-assistance systems are still expensive in Europe, they’re offered cheaply or even free in China, where automakers are using them to win buyers in a price war.

Research group Canalys says about 15 million cars will be sold in China this year with Level‑2 systems, more than 60% of the market. These systems allow automated driving under some conditions but still need drivers to pay attention. In June, Chinese regulators approved nine automakers to run public-road tests of Level‑3 systems that let drivers look away from the road in most situations.

European automakers launch low-cost electric cars to counter China

Following the U.S. ban on China connected-car technology under President Joe Biden, European governments have been more open to Chinese vehicles and technology, said Tu Le of consultancy Sino Auto Insights. But some carmakers are responding.

Renault’s low-cost brand Dacia on Monday showed off a prototype electric mini-car priced under 15,000 euros ($17,625). The “Hipster Concept” could go into production if the European Union creates a new small car category. It measures just 3 meters (9.84 feet) and weighs less than 800 kilograms (1,763.7 pounds).

By comparison, Leapmotor’s T03 city car, the shortest car now on sale in Europe, is 62 centimeters longer. This prototype is seen as a direct attempt to offer a competitive alternative to cheap Chinese EVs already on the market.

Chinese automakers, who have already won over middle-class drivers at home, are now targeting rich customers who want more personalized features in their cars. This shift is forcing Europe’s premium brands to react.

Luxury carmakers are watching closely as Chinese rivals combine aggressive pricing with cutting-edge software and battery tech.

Chinese firms push premium models and customization into Europe

Last month, Xiaomi launched a service allowing buyers of its 529,900 yuan ($74,000) SU7 Ultra electric sedans to add custom trim and paint jobs. This adds at least 100,000 yuan to the price.

The service covers options like 24‑karat gold hood badges and forged wheel hubs in four colors. It also extends to Xiaomi’s 329,900 yuan YU7 Max SUV, which some compare to Ferrari NV’s Purosangue.

Xiaomi, known as a major smartphone maker, is now directly competing for customers who might otherwise choose Porsche or another premium European brand.

At the same time, Porsche is pushing to expand sales of bespoke 911 sports cars in China while facing heavy EV pressure from local brands like BYD Co. and Nio Inc.

Porsche and its Western peers long relied on strong growth in China with precision-engineered combustion vehicles. But companies like Xiaomi, BYD, and Nio have changed the game. After dominating affordable EVs, they’re now going after wealthier buyers.

Xiaomi’s SU7 Ultra undercuts the 918,000 yuan Porsche Taycan but looks very similar to the German flagship EV. Buyers must commit at least 100,000 yuan for personalized touches.

Lei Jun, Xiaomi’s billionaire CEO, also unveiled a smartphone meant to compete with the iPhone 17 at a price more than $100 lower. This shows how Chinese brands are attacking premium segments on multiple fronts, from EVs to consumer tech, while Europe scrambles to defend its position.

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