Chinese Automakers Gain Ground at Paris Motor Show

"There were a lot of Chinese booths at the Paris Motor Show. No matter where you went, you could see them. It was hard to tell if you were in Europe or not," said a representative from the South Korean automotive industry who recently attended the 2026 Paris Motor Show. This year, over 20 Chinese automotive brands participated, marking the largest presence ever, meaning one in three complete car brands was from China.

However, the noteworthy aspect was not just the number of booths but what these Chinese companies showcased as their competitive edge. They have rapidly expanded beyond automobiles into physical AI technologies. A four-legged robot roaming the exhibition floor exemplified this shift, branded with the name 'AIMOGA' from China's Chery Group. Passersby stopped to watch the robot perform tricks like a real puppy, highlighting the moment when 'Red Tech' captured attention.

Despite this, perceptions in South Korea still tend to undervalue products simply because they are labeled as 'Chinese.' When discussing Chinese cars, many express concerns, saying, 'They are cheap, but I hesitate to buy due to the brand.' While safety and quality are indeed critical factors to consider, it is natural for consumers to be cautious when choosing a vehicle that costs millions of won and will be used for several years.

However, it would be a mistake for the domestic automotive industry to view consumer skepticism as a permanent barrier to entry. Changes resulting from the entry of Chinese automakers are already evident in South Korea. According to the Korea Automobile Importers and Distributors Association (KAIDA), BYD's new registrations in South Korea reached 20,137 from January to August this year. This indicates that many consumers no longer exclude vehicles from their consideration simply because they are from a Chinese brand.

The competitiveness of Chinese brands is no longer limited to cost-effectiveness. They are gaining experience in testing and refining automotive technologies on the road. With relatively fewer regulations, China has become a massive testing ground for applying new technologies and gauging consumer reactions early. Consequently, the pace of technological development among local Chinese companies is accelerating. A prime example is the verification of technologies through autonomous driving trials on actual roads.

Chinese automakers have already reached a position where major companies seek technological partnerships. Germany's Volkswagen has collaborated with Xiaopeng on joint electric vehicle development and vehicle electronic and electrical system design. In South Korea, KG Mobility plans to launch its first vehicle using the Chery platform early next year. This partnership aims to secure the technology, costs, and time necessary for new car development, going beyond mere sales in the Chinese market. The reality is that while being cautious of China, South Korean companies are also looking to them as development partners.

The question South Korean automakers must ask themselves is clear: Is there enough reason for consumers to choose Korean cars even after they set aside their biases against Chinese vehicles? The presence of Chinese cars, as observed in Paris, poses a challenge to the South Korean automotive industry. While Chinese companies are enhancing their competitiveness without the stigma of being labeled as 'Chinese,' South Korean firms must reflect on whether they have been complacent. Even if consumer biases fade, South Korean automakers need to prove their capabilities.

Of course, active government support is also essential. There should be more opportunities to validate autonomous driving and robotics technologies in real-world environments, and systems must be established to ensure that successful demonstrations can lead to business opportunities. While strict safety standards should be enforced, a predictable environment must be created where companies know what conditions they must meet to advance to the next stage. Relying solely on individual automaker investments will not be sufficient to build the ecosystem necessary for future vehicle competition.