BEIJING, China: Chinese automakers are stepping up their challenge to global luxury carmakers, unveiling a wave of premium vehicles at the Beijing Auto Show that combine advanced technology with significantly lower price tags than established European rivals.

After years of competing on affordability and innovation in electric vehicles, companies such as Geely and Nio are now targeting the high-end market, a shift that could reshape competition both in China and internationally.

The move comes after a prolonged price war in China's electric vehicle sector, which has pushed manufacturers to seek new ways to differentiate themselves and protect margins.

"The price war has turned into a value-for-money war," said Bo Yu, Greater China country manager at research firm JATO Dynamics.

This year's Beijing Auto Show, which opens on Friday, is expected to showcase 181 new models and 71 concept cars, including a surge of large, premium "9-series" SUVs, according to Cui Dongshu, secretary-general of the China Passenger Car Association.

The push into the premium segment poses a growing threat to German automakers, which have traditionally dominated the luxury market. According to S&P Global Mobility data, German brands' combined sales in China have fallen nearly 25 percent, to 3.85 million vehicles, down from 5.1 million in 2019.

Mercedes-Benz, BMW, and Volkswagen-owned Porsche and Audi all reported declines in China in the first quarter, underscoring the pressure from local competitors.

At the same time, Chinese manufacturers are increasingly looking beyond their domestic market, where intense competition has led to oversupply.

They have been able to absorb European Union tariffs on Chinese-made electric vehicles while still offering lower prices than comparable European models. Hybrid and combustion-engine vehicles exported from China are not subject to the same duties.

"I expect more Chinese companies to double down on premiumization," said Stephen Dyer, head of AlixPartners' automotive practice in Asia. "To differentiate themselves at home, but also to prepare for going global."

Among the standout launches, Geely's premium brand Zeekr introduced the 8X, a full-size plug-in hybrid SUV equipped with advanced safety and automation features.

The vehicle can tilt upward before a side collision to protect passengers and can autonomously maneuver out of tight parking spaces when prompted by the driver. Priced below US$53,000, it significantly undercuts comparable German models.

Geely also presented a demonstration showing the 8X outperforming premium rivals such as the Porsche Cayenne and BMW 5M in speed trials, models that start at around $135,000 and $205,000, respectively. "This is the new king of the road," Geely Automobile CEO Gan Jiayue said at a launch event.

Industry analysts say the strategy extends beyond competing with European brands.

Tu Le, managing director of Sino Auto Insights, said the move into large premium SUVs is "a shot across the bow" for U.S. automakers such as General Motors, Ford, and Stellantis, which rely heavily on these high-margin vehicles. "Detroit's cash cow is no longer safe," he said.

Changing consumer preferences are also driving the shift. The average age of car buyers in China has risen above 40 from around 30, with demand increasing for larger and more premium vehicles.

At the same time, younger consumers are placing greater emphasis on technology rather than brand heritage, weakening a key advantage held by European luxury carmakers.

"German brands are stuck in the past," Bo said. "But Chinese consumers want to embrace the future."

Analysts note that while Chinese brands have made rapid gains at home, their ability to replicate that success globally remains uncertain.

Auto consultant Felipe Munoz said it would have been "unthinkable five years ago" for Chinese consumers to favor domestic premium brands over established foreign competitors.

Now, however, "foreign luxury and premium brands are now going to find it harder to survive in China," he said.

"The question is whether this will be the case outside China," Munoz added. In Europe, German premium brands are a reference for quality. That's going to be hard to change."