Xiaomi EVs Set to Enter Europe: How Can China’s Automotive Accessories Industry Ride the Wave?

Xiaomi Auto recently announced plans to enter the European market—including Germany—by 2027 and signed memoranda of understanding with eight leading German automotive dealership groups. This marks a substantial first step in establishing a retail and service network for the European market.

Xiaomi’s overseas expansion serves as a microcosm of the accelerating trend in Chinese automotive exports. The China Passenger Car Association (CPCA) projects that China’s vehicle exports could reach 11.5 to 12 million units by 2026; in the first eight months of the year alone, cumulative passenger vehicle exports surpassed 6.09 million units—a year-on-year increase of over 75%. Notably, new energy vehicles (NEVs) have accounted for more than 50% of these passenger vehicle exports for several consecutive months. Leading domestic NEV brands have already established a firm foothold abroad: BYD has set up local manufacturing plants in Hungary, Thailand, and Brazil—a strategy mirroring that of the many automakers that entered the Chinese market years ago—while Leapmotor has leveraged Stellantis’s distribution network to establish over 900 sales and service outlets across Europe, driving a nearly fourfold year-on-year increase in exports during the first half of the year.

The wave of Chinese vehicle exports is transforming regions like Europe into major growth markets for premium automotive accessories, such as seat cushions. Exhibitors in Halls A3 and A4 at the 2026 Yasen Beijing Exhibition demonstrate that domestic seat cushion manufacturers are closely aligning their designs with market shifts driven by the new energy vehicle (NEV) boom. Offerings for NEV models have evolved to prioritize eco-friendliness and customization, with OEM-matched colors and precise fitment now serving as standard features. Furthermore, car owners' demands for environmental sustainability and healthy air quality are accelerating the adoption of natural, eco-friendly materials within the automotive aftermarket.

Even more noteworthy is the pricing potential in overseas markets. Unlike the hyper-competitive landscape for automotive accessories in China, products such as seat cushions can command a premium abroad, yielding higher profit margins for exports. The logic behind this price disparity mirrors the situation with mobile phone screen protectors: in China, a screen protector is a "standard" item—cheap to buy and easy for many users to apply themselves. Overseas, however, the base price is higher, and when labor costs are factored in, the protector becomes an "optional" add-on; consequently, many consumers simply choose to use their phones "naked" (without a protector).

Therefore, before expanding overseas, manufacturers of automotive accessories need to do their homework and gain a thorough understanding of their target markets, including consumer preferences and purchasing habits. Only by grasping these factors can they truly identify a valuable new market.