It takes more than James Bond to sell Chinese luxury cars abroad

CHINA – With domestic demand cooling, China’s upscale car brands should be aggressively pushing offerings overseas in the same way as their mass-market cousins. But charging three times the home price – as BYD did when it introduced its latest luxury model in Europe – is not the way to go, even if James Bond actor Daniel Craig is the pitchman.

The British star was hired to promote the Denza Z9GT at its Paris debut in April. Billed by some as the world’s longest-range electric vehicle, the car is a compelling product. 

A second-generation blade battery enables five-minute charging to achieve about 645km of range. Other features that mark it as a high-end model include the ability to reach a speed of 97kmh in less than three seconds and independent rear-wheel steering for precise moves, including compass turns and lateral parking. 

The new Denza is part of a wave of releases by premium brands – a major trend at the Auto China 2026 trade show in Beijing, which ended on May 3.

The luxury segment consists of cars that cost from around 300,000 yuan (S$55,900). That is about the price of an average vehicle in the United States or Europe. But in China, it is enough to get a performance model with expansive displays, an advanced smart-driving system, roomy cabins and easy connectivity to mobile phones.

Overseas reviews of these cars have been largely positive and sometimes rapturous.

Whether the luxury brands will sell overseas remains to be seen. Domestic players are no longer just low-end challengers; they are also redefining the premium space. However, one thing they do not have is brand equity, that intangible quality that makes people willing to pay more. I have previously argued BYD should enter Formula One racing to build reputational value and, eventually, pricing power. But this is a time-consuming process.

Chinese cars are still primarily known for being good value for money. That is why there was much side-eyeing when the Denza was priced at €115,000 (S$171,150) in Germany and France, about the same as the Porsche Panamera, a four-door supercar. At home, the entry-level Z9GT costs the equivalent of US$40,000 (S$50,800). 

To be sure, the European price must be higher due to taxes and additional costs. There is a standard 10 per cent tariff on car imports, plus a 17 per cent levy for BYD vehicles as part of company-specific tariffs. Together, that would result in a US$10,000 increase to the base price.

Adding another US$30,000 to cover miscellaneous fees like certifications and a reasonable profit margin would result in a price of US$80,000 – a bargain considering the vehicle’s technical specifications.  

BYD has taken the opposite stance. It is announcing to the world through top-tier pricing that its products are as good as legacy Western brands. While attention-grabbing, the strategy is at odds with what Chinese carmakers have to offer: advanced technology at a faster pace and lower price. Still, it is a compelling pitch as the region grapples with a cost-of-living crisis.

The approach has already worked for mainstream models. Five years ago, Chinese cars had minimal market share in Europe, according to Mr Julian Litzinger at Dataforce, a consultancy and data provider. But they have had a meteoric rise. In 2025, Chinese brands eclipsed both US and South Korean rivals. In March, they were only four percentage points behind Japanese carmakers. 

Wallet-friendly models include Chery Automobile’s £35,000 Jaecoo 7 plug-in sport utility vehicle, which has been called the “Temu Range Rover” for its look-alike design and budget positioning. Another is BYD’s Seal U DM-i plug-in hybrid, about £10,000 cheaper than a comparable Volkswagen AG model.

Chinese premium brands have yet to gain a foothold in Europe – they had only a 0.4 per cent share of total sales in March, according to Dataforce. But with the right marketing and pricing strategy, they can. Doing so would unlock an important new arena as momentum fades at home.

The China market share of luxury cars steadily doubled between 2017 and 2022. But after hitting a peak shortly after, it has been falling, according to S&P Global Ratings’ analysis of data from the China Passenger Car Association. Around the same time, demand for basic models costing 50,000 yuan to 100,000 yuan picked up after years of decline.

These purchasing patterns are a consequence of the collapse of the property sector, which has caused a slowdown in consumer confidence.

It is all the more reason to seek out new pastures.

Europe – home to the world’s most exclusive carmakers like Audi, BMW, Mercedes-Benz Group and Porsche – is an exceptionally tough market to crack. Hiring a familiar face like Craig to sell Chinese models was a good decision, but it needed to be accompanied by a shrewder pricing structure.

Dropping the price of the new Denza would be a smart place to start.