Gasgoo Munich- On February 24, 2026, Li Auto joined the China Chamber of Commerce to the EU as a member and entered its automotive working group. The chamber's board unanimously approved the decision.
Headquartered in Brussels near key EU decision-making bodies, the chamber represents over 1,000 Chinese companies operating in Europe. It aims to serve as a bridge for economic and trade cooperation between the two regions.
From the perspective of industrial competition and global strategy, joining a representative industry body helps Li Auto grasp local policies and market dynamics more directly. It also offers a potential platform for localized R&D and collaboration.
From registering its first overseas R&D entity in 2024 to opening a German research center in early 2025, and now joining a core industry group for Chinese firms in Europe, Li Auto is accelerating its push into the European market.
Is Li Auto Ready for Europe?
For a long time, Li Auto approached the European market with caution—and at times, hesitation.
In 2023, the company revamped its overseas strategy. While it internally clarified the long-term goal of serving global markets, debate persisted over the specific path forward.
Previously, Li Auto vehicles largely reached overseas markets through parallel exports. However, shifting policy dynamics caused those shipments to plummet from a monthly peak of 4,000 units to just a few hundred. That informal channel clearly cannot sustain long-term global ambitions.
Li Xiang, Li Auto's chairman and CEO, acknowledged that moving too slowly on its global push was one of the company's 'biggest mistakes.' Liu Jie, president of the product line, echoed that sentiment: as a Chinese tech firm, Li Auto aims to serve the global market, not just stay within domestic borders.
Image source: Li Auto
The turning point arrived in 2025. Li Auto designated the year as the 'official start of its overseas expansion' and mobilized its organization accordingly. The company set up a dedicated international expansion division and reassigned top talent from within to focus solely on overseas operations.
In terms of preparation, Li Auto adopted an 'R&D first' strategy. It registered its first overseas research entity in Munich in April 2024 and opened a German R&D center in 2025. The center has already assembled a specialized team covering styling, power semiconductors, chassis systems, electric drivetrains, and regulatory certification. The goal is to build development and testing capabilities grounded in European regulations, laying a solid foundation for adapting future products to local needs.
Meanwhile, Li Auto has been gaining experience in Central Asia and the Middle East. It has already established direct sales and service centers in Kazakhstan, Dubai, and Uzbekistan.
For Europe specifically, Li Auto recently posted job listings on professional social networks for sales vice presidents in markets including Madrid and Warsaw. The requirements are stringent: candidates must not only craft overall sales strategies and market entry plans but also demonstrate a deep understanding of local regulations, including data privacy, antitrust laws, and EV subsidies.
This hunt for talent in compliance and localized management further confirms Li Auto's determination to localize its entire system within the local market.
Now, the Timing Is Right
In Li Auto's view, now may be the right moment to enter Europe. The judgment rests on several factors.
First, pressure at home is forcing the issue. The penetration rate of new energy vehicles in China has surpassed 50%, shifting competition from growth to a fight for market share amid a persistent price war. Yang Jing, a director in Fitch Ratings' Asia-Pacific corporate ratings group, noted that as intelligent driving accelerates and domestic competition intensifies, overseas markets offer a potentially clearer path to growth for individual automakers.
Second, accumulated experience abroad. Through its forays into the Middle East and Central Asia, Li Auto has built a preliminary overseas operational framework. The job listings show clear expectations for market leaders: they must understand and comply with local data privacy, antitrust, and subsidy regulations, and be capable of adjusting strategies as policies shift. This suggests the company recognizes the complexity of operating outside China.
Image source: Li Auto
Third, a deepening understanding of Europe. Liu Liguo, Li Auto's senior vice president of vehicle electrification, said he has led teams to Europe annually for the past two years to meet with users and partners. He found that extended-range technology holds market potential in Europe—it simply lacks competitive products right now. That insight, drawn from on-the-ground visits, goes deeper than standard market research.
Fourth, signs of easing in China-EU trade relations. A relatively softer trade environment offers more stable expectations for Chinese automakers planning to enter Europe.
Fifth, the technological route may face lower tariff barriers. Li Auto specializes in extended-range electric technology, which under current EU tariff classifications and trade policies might be treated differently than pure battery-electric vehicles. With Europe's charging infrastructure still limited in coverage, extended-range hybrids have a window of opportunity.
From setting up a dedicated division and opening a research center to joining the EU chamber, Li Auto's moves indicate that its entry into Europe is not a short-term experiment.
However, competition in Europe is never a sprint. Facing a counteroffensive from local giants like Volkswagen and Mercedes-Benz, and vying for market share against early movers like XPENG and NIO, Li Auto must prove it can truly localize its entire system. It remains to be seen whether it can scale up while maintaining service standards.
