Barely two years after Raim launched its car business, Xiaomi aims to become one of Europe's top five premium brands. It has chosen Germany, the region's fiercest market, for its first European entry next year. “China’s auto industry needs to aim higher to create truly world‑class vehicles,” founder Lei Jun said at the Beijing Auto Show, highlighting Xiaomi’s intent to bring cutting‑edge technology to the premium segment.

Chinese makers are already carving space in Europe. In the first half of the year, BYD and other brands grabbed a 9% share of new car sales in Europe and 15% in the UK, with one in ten vehicles sold in May being Chinese for the first time. Consultancy Alix Partners projects that the Chinese share could rise to 16% by 2030, close to the combined forecast of Japanese and Korean brands.

However, dealers warn that premium brands like BMW, Mercedes‑Benz and Porsche are unlikely to be displaced. They cite brand loyalty, pricing strategies and the risk of exporting China’s price wars. Some smaller entrants, such as Li Auto and Xpeng, plan to sell directly to consumers rather than through traditional dealerships, a model that has faced challenges in Europe.

Despite skepticism, the new wave of tech‑focused EV makers—backed by Huawei’s in‑house chips, advanced software and autonomous features—continues to push the envelope. In June, Xiaomi’s YU7 GT SUV completed the world’s first autonomous lap at Nürburgring, underscoring its commitment to self‑driving technology and its belief that the best is yet to come.