Can Chinese EVs beat Western brand legacy?

As the automotive industry races toward electrification and smart mobility, Chinese manufacturers are emerging as formidable global challengers to established Western brands, creating a new battleground where technology meets tradition. China’s global EV ambitions In 2024, car brands hailing from Mainland China saw a 52% YoY increase in vehicle registrations in Europe, jumping to 37,134 units in January alone, according to the European Automobile Manufacturers Association. While that figure doesn't yet rival the continent's household names, it places Chinese automakers ahead of established players like Ford in monthly sales. Geely Holding, China’s largest private automaker, led the charge with 3.33 million units sold globally in 2024, a 22% annual jump, while premium electric vehicle manufacturer Nio delivered 221,970 vehicles, up nearly 39% YoY, according to company financial reports. The new design challenge for Western manufacturers “Almost every electric car is fast,” says Julian Thomson, Design Director at General Motors (GM). “What we’re trying to do now is bring the excitement and involvement back into EVs, because they don’t splutter, don’t roar. They’re quiet, heavy, and clean. And that makes fun driving a real design challenge." This design philosophy is evident at General Motors’ newly inaugurated advanced design studio in Royal Leamington Spa, U.K., where a striking Chevrolet Corvette concept car was recently unveiled as part of a global design initiative. The U.K. studio, led by Thomson, plays a key role in GM’s European expansion and future-focused design strategy, with concept projects that fuse Corvette heritage with futuristic aesthetics — efforts that have accelerated due to competitive pressure from the Chinese market. Technology vs. heritage: The competitive battlefield Brands like BYD and XPeng have established international footprints through battery innovation and tech-first positioning. BYD’s Blade Battery, launched in 2020, reshaped expectations around safety and energy density. Meanwhile, XPeng’s dual-market IPO strategy, with funding from both Chinese and Western backers, has enabled it to bridge cultural and technological gaps. Just recently at CATL’s 2025 Tech Day, the Chinese battery giant made a bold statement about its dominance in the global EV race, unveiling three breakthrough technologies that put it ahead of both global competitors and local rival BYD. Yet, Western marques are repositioning around something Chinese newcomers often lack: decades of emotive legacy and brand storytelling. For GM, “it’s about legacy and storytelling, really,” says Thomson. “When people buy a watch, a shoe, or a house, they want to know the history. Chinese brands can talk about tech and price. But what they often miss is the story.” Luxury automakers in transition Traditional luxury automakers like Porsche, Bentley, and Maserati are recalibrating as the market fragments under Chinese competition. While Porsche remains a cultural touchstone, its operating profit fell 23% to 5.6 billion euros ($6.4 billion) in 2024, according to its annual report. Maserati faced a more severe reckoning: a 55% YoY drop in sales and 260 million euros ($295 million) in losses in H1 2023, owner Stellantis revealed in its latest earnings call. Bentley, despite its high visibility on social media, reported a 10% revenue decline due to weak Chinese demand and looming U.S. tariffs. Gen Z: Rewriting automotive purchasing patterns Young consumers, especially in China, are reshaping global design and purchasing trends in ways that challenge conventional automotive marketing wisdom. “They’re really difficult to pin down,” Thomson says. “It used to be that people followed their parents’ buying habits. Now, it’s often the reverse, with parents following their children’s choices. The way Gen Z sees mobility, freedom, aspiration, it’s totally different.” This influence extends beyond China. Nio’s premium EV brand resonates strongly with digital natives across platforms like TikTok in the West, where it has amassed over 26.3 million mentions, compared to Geely’s 66,700. The Chinese EV maker’s lifestyle-focused approach — combining retail spaces, tech ecosystems, and community events — is drawing comparisons to Apple more than traditional automakers like Audi. “The most successful brands create that cult following,” Thomson adds. “They’re building clubs, not just products. And that changes everything.” Western legacy brands rebuilding community Cadillac is one Western legacy brand seeking to tap this community-led energy in its European relaunch, adopting strategies that mirror successful Chinese brand-building techniques. “Not many brands have a community of owners in countries where the brand doesn’t officially operate,” says Pere Brugal, President of GM Europe. “But with Cadillac, we see that kind of emotional connection, especially around fashion and design.”] Cadillac’s return began in Switzerland and Sweden, expanding recently to France and Germany. The goal: infuse American luxury DNA with localized storytelling and community-based marketing that resonates with European luxury consumers. Brugal points to a fundamental shift in how consumers view automotive purchases: “In the 1980s, owning a car meant freedom,” he says. “Now, there are so many lenses — there’s fashion, tech, sustainability … these all shape how consumers relate to a brand." European design philosophy vs. Chinese approach European design houses are increasingly pushing beyond convention to differentiate themselves from Chinese competitors who excel at technological integration. As Thomson explains, “European design tends to be more colorful, more full of personality, more adventurous. Chinese manufacturers tend to imitate each other, which isn’t a bad thing, but European brands aim to experiment and lead trends.” This distinction matters as automakers navigate an evolving economic landscape marked by slower EV sales growth, high production costs, and political uncertainty. While the EU pushes aggressive green targets, consumer hesitation around EV range, pricing, and resale value lingers. “I think we’ll see a new generation of electric vehicles that focuses on agility, lightness, and driving involvement,” says Thomson. “It’s not just about speed anymore; it’s about fun.” The future belongs to brand storytellers As Rolls-Royce and Bentley grapple with visibility versus revenue performance — and as BYD and Nio gain ground — the battle between legacy and innovation is intensifying. Rolls-Royce, buoyed by strong performance in its aviation division and luxury vehicle sales, is racing ahead both in terms of social media presence and financially. Meanwhile, BYD has expanded its U.K. retail presence from 14 to 60 dealerships, pushing brand recognition from 1% to 31% in 2023, according to UK Automotive Consumer Insight research. Fusing innovation with heritage In the coming years, the brands that succeed in China and the West will be the players that manage to fuse cutting-edge technology with meaningful storytelling. The mainland might be leading in terms of electronic innovation, but legacy brands are amping up their offerings too, creating a fascinating convergence of East and West in the luxury automotive sector. As consumers increasingly seek both technological advancement and authentic brand narratives, the winners in this new automotive landscape will likely be those who master both domains — whether they originate in Shanghai or Stuttgart.

Can Chinese EVs beat Western brand legacy?

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Published April 23, 2025

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Can Chinese EVs beat Western brand legacy?