China’s next battleground beyond EVs will be large luxury family SUVs

The Chinese car market – and the subsequent products brands like BYD, XPeng, MG, and Chery decide to bring to Australia – continues to evolve, with the large SUV segment set as the next area of conquest.

While Chinese cars were once a synonym for cheap and cheerful motoring not that long ago, the world's largest car market has made great strides towards what it calls New Energy Vehicles (NEVs) – or all-electric and hybrid powertrains.

However, China seems poised now to take a stab at the large luxury SUV market with a bevy of new models.

The playbook is simple: Serve up BMW X5, Audi Q7, and Volvo XC90-rivalling levels of opulence, while retaining its electric-first powertrain expertise, and sell them at Toyota Kluger and Mazda CX-90 prices.

And nowhere was this mission statement more evident than this year’s Beijing motor show.

Across more than a dozen halls, each brand all had a large SUV on display to dazzle and impress with large in-cabin screens, soft-touch leather, and sometimes a unique gimmick to stand out from the crowd.

The other thing they all had in common? Electric-forward powertrains.

Most are fitted with range-extender electric vehicle (REEV) powertrains, which feature a small petrol engine to act as a generator for the battery that then powers the wheels.

Some, like the Denza and BYD are plug-in hybrids, which means their petrol engines can drive the wheels – even if the priority is recharging the battery.

Others still, like the MG IM8 and XPeng GX, also feature all-electric options – but given the size and weight of the models, range is conservative against smaller, sleeker vehicles like the Tesla Model 3.

Aside from electric-forward powertrains, most cabins are fitted with more screens than a movie theatre.

Not only is there the usual digital instrument cluster and infotainment displays, but front passengers are also treated to a screen to let them watch streaming services while on the go.

And because of the large SUV’s positioning as a family model, rear-seat occupants will not miss out thanks to massive, roof-mounted displays that could be easily viewed from the third row – at least in their home Chinese market.

While some of these high-riding models are designed to make the school run and daily commute as comfortable and plush as possible, few like the MG IM8 and XPeng GX are also equipped with a degree of off-road capability to take them off the beaten path.

The caveat here is that not all the listed models will make their way to Australian showrooms, but a fair few – like the MG IM8, Zeekr 9X, and Freelander 8 – are already locked in and will arrive in the next 12-18 months.

But, as the next battle arena in China’s automotive arms race, it would be prudent for brands to offer something in this space, lest their rivals get a free kick.

A large, luxury-leaning SUV to sit atop a Chinese brand’s line-up gives them a flagship model to point well-heeled customers towards.

It brings status, clout, and presence other models cannot match.

And the higher price tag means fatter profit margins – even if they undercut established players in the space.

Just like how you see a Chinese EV on every street corner now, large SUVs from China could soon dominate city streets.

Family Cars Guide

Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.

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