China’s luxury-car market is no longer the predictable preserve of German prestige brands. Consumer tastes are shifting, domestic electric-vehicle makers are moving upmarket and the old assumptions about badge power are being tested. For FAW-Audi, the launch of the new Audi A6L is less a routine model change than a signal that the company has begun to rethink how it competes in China.

Mercedes-Benz is facing a wave of complaints in China after an official recall update allegedly reduced the usable battery capacity and driving range of some EQC electric SUVs.

Avatr’s Hong Kong listing plan was supposed to be one of the cleaner stories in China’s crowded electric-vehicle market: a state-backed premium EV brand, supported by Changan Automobile, Huawei and CATL, seeking capital to accelerate growth. Instead, the company’s prospectus has lapsed, sales have slowed sharply, and investors are being asked to decide whether a valuation of about $3.8 billion still makes sense.

BYD has shown a vehicle driving on three wheels. Nio has made a car appear to dance. Behind these attention-grabbing demonstrations lies a deeper shift in automotive engineering: the rapid rise of the intelligent chassis, a technology built around digital control rather than purely mechanical tuning.

Europe has rapidly become the newest battleground for Chinese carmakers seeking growth overseas. As competition intensifies, the continent’s demanding regulatory standards and mature automotive ecosystem have turned it into a key testing ground for Chinese brands looking to move upmarket and expand globally.

Petrol-car sales slumped in April, in sharp contrast with a new-energy vehicle penetration rate of 61.4%. Petrol cars are unlikely to disappear from history in the near term. But in 2026, an accelerated reshaping of the industry now looks unavoidable.