With over 100 car manufacturers in China and 34 million cars produced last year (compared to an estimated 27 million cars sold in the country), every third new car registered worldwide last year rolled off a Chinese assembly line – and Luxembourg isn’t left out of that trend.

Major Chinese manufacturers have been pushing into the European market since 2023. In order to protect the domestic automotive industry, the EU imposed import duties on electric vehicles from China at the end of 2024. Nevertheless, more MGs, BYDs and DFSKs are being sold every year.

BYD, for example, was hit with an extra duty of 17.4%, but did not raise its sales prices in Luxembourg.

In Lianyungang, a city in the eastern Chinese province of Jiangsu, vehicles manufactured by BAIC wait on the dock before being loaded onto a ship © Photo credit: AFP

“According to the SNCA, around 2,000 Chinese cars were registered in Luxembourg in 2024,” said ACL expert Frank Maas. The market share has risen steadily in recent years. While only 0.05% of cars sold in Luxembourg in 2019 came from Chinese manufacturers, this figure rose to 2.24% by 2024.

“Just ten years ago, Chinese cars had a bad reputation,” said Maas. In crash tests, they performed worse than cars from other countries. “But in the meantime, manufacturers have made significant progress and adapted to the safety standards of European, Japanese and Korean brands.” Some models have passed the Euro NCAP crash test with the highest rating of five stars.

“It would also be tempting to say that Chinese cars are cheaper,” said Maas. But that isn’t necessarily true. “At the beginning of the year, we counted the e-cars on the market that cost less than €30,000 – including only one model from China.”

Nevertheless, a comparison is no easy task, he said. “As is often the case with cars from Asia, the Chinese ones are well-equipped”, better than European ones, where many options have to be paid for separately.

“However, the build quality and comfort sometimes fall short of European standards,” said Maas. “According to our roadside assistance service at ACL, we have not noticed any higher breakdown rates with Chinese cars,” he said. However, as the cars are only a few years old, their reliability will take several years to truly assess, he said.

But which carmakers are available? In total, there are around 25 Chinese brands that can currently be bought in Luxembourg. The Luxemburger Wort took a look at some of the most popular ones.

MGs were on display at the Autopolis garage in Bertrange for the 2023 Autofestival © Photo credit: Alain Piron

The Morris Garage (MG) company was founded in Oxford, England in 1923. After an eventful history, it went bankrupt in 2005. The Chinese Nanjing Automobile Group secured the brand rights and relocated production to China. Three years later, MG changed hands again. Today, the brand belongs to the SAIC Group.

In the early 2020s, the logo reappeared at car dealerships in Luxembourg. The model range has been expanded to the conventionally powered small car MG3, the SUV MG HS, the electrically powered MG4 and the electric, two-seater roadster MG Cyberster are offered.

BYD sold 4.27 million cars in 2024, making it the only manufacturer from China in the top 10 (7th place) © Photo credit: Tamara Holper

In 1995, chemist Wang Chuanfu founded a factory in Yadi to manufacture rechargeable batteries. At the time, the company was named after its headquarters, Yadi Electronics. Yadi became Biyadi, which was later changed to “Build your dreams”.

BYD started producing electric cars in 2003 and today enjoys a reputation as one of the world’s leading companies in the field of traction batteries.

The company entered the European and Luxembourg markets in 2023. There are nine different models in the BYD showroom in Bertrange. The prices range from the BYD Dolphin for just under €20,000 to the all-wheel-drive seven-seater BYD Tang for €66,000.

BAIC is one of the oldest manufacturers from the Middle Kingdom. The company Beijing Automobile Works (BAW) was founded in 1958 and began production of the first vehicle developed entirely in China in the same year. In 1973, BAW became the Beijing Automotive Industry Corporation (BAIC).

“Through strategic partnerships with Mercedes-Benz and Hyundai, BAIC is continuously being developed and modernised. These collaborations make it possible to integrate state-of-the-art technologies and the highest quality standards into vehicle production,” says the company.

In 2024, BAIC sold almost one million vehicles, 120,000 of which were exported and 24 of which found a buyer in Luxembourg.

In China, the Hongqi serves as a state car © Photo credit: Hongqi

Hongqi (red flag) is the oldest Chinese car brand and part of the FAW Group, a state-owned car manufacturer based in Changchun. In China, Hongqis are used as state cars. Chinese President Xi Jinping officially drives one of the brand’s vehicles.

Customers in Luxembourg, a country accustomed to horsepower, can purchase their luxury model at Hedin Automotive in Luxembourg City. Three models are available in Luxembourg: the all-electric Hongqi E-HS9 SUV in the President version has over 500bhp, air suspension and offers space for up to seven people. Prices start at €77,000.

Small, short and cheap. The Leapmotor T03 is currently conquering Europe’s city centres © Photo credit: Stellantis

You won’t find luxury in Leapmotor vehicles. Founded in 2015, the manufacturer specialises in the production of environmentally friendly and affordable vehicles.

The company has developed a cell-to-chassis technology, and in contrast to other manufacturers, the traction battery is not installed in a battery box but is connected directly to the chassis. This increases body rigidity and space while reducing weight.

The Leapmotor T03 is available in Luxembourg from Petrymobil and costs just under €19,000. It can cover around 250km on one battery charge. Last year, Leapmotor entered into a strategic partnership with the Stellantis Group.

Dongfeng Sokon (DFSK) was founded in 2003 and has developed into one of the largest car manufacturers in China, known for its light commercial vehicles, SUVs and minibuses.

In Luxembourg, the company Autodis in Mersch distributes DFSK vehicles. Five different models, all SUVs are for sale. The range extends from a compact crossover for under €20,000 with a 1.5-litre engine to a seven-seater with a 2-litre engine and over 200hp for just under €40,000.

Xpeng has only been represented in Luxembourg since 2024.  © Photo credit: Dustin Mertes

Xpeng (also known as Xiaopeng Motors) has only been in existence for ten years. Early supporters included the current CEO He Xiaopeng, Lei Jun, the founder of Xiaomi, as well as investors such as Alibaba and Foxconn. The first series model was delivered in 2018.

In Luxembourg, Xpengs can be purchased from Hedin Automotive. There are three models to choose from, ranging in price from €42,000 for the G6 model to €58,000 for the G9 model. All are equipped with electric motors and have ranges of up to 600km, according to the manufacturer.

(This story was first published in the Luxemburger Wort. Translated using AI, edited by Cordula Schnuer.)