Chinese automakers are rapidly expanding into right-hand-drive markets stretching from Australia to Southeast Asia, taking direct aim at Japanese car companies that have dominated those regions for decades — and they’re doing it with high-end electric vehicles designed to attract wealthy buyers.
The Hong Kong auto show, which kicks off Thursday, will serve as a showcase for brands including BYD, Zeekr, Hongqi, and MG as they unveil new products and lay out their international strategies. The focus is on well-heeled consumers in markets long controlled by Japanese manufacturers such as Toyota.
For many years, Japanese vehicles ruled Hong Kong’s roads. The Toyota Crown Comfort was the backbone of the city’s taxi industry, and the Toyota Alphard was the go-to ride for celebrities and the wealthy. But that landscape is shifting fast.
Electric vehicles now make up more than 80% of all newly registered private cars in Hong Kong during the first four months of the year, according to data from the Hong Kong Transport Department. Chinese brands — including BYD, GAC Aion, Zeekr, and Denza — are now outpacing their Japanese rivals in both fleet and luxury categories.
BYD has carved out a notable presence in Hong Kong’s taxi fleets, replacing some Toyota models in the process. Meanwhile, combined sales of the Zeekr 009 and Denza D9 have surpassed the Alphard in the first four months of the year, making them the preferred vehicles among the city’s upper class, according to Hong Kong government figures.
A UBS analyst weighed in on the broader trend, noting that fuel costs have played a key role: “High oil costs since March have rejuvenated China’s EV sector, sparking fresh global interest and creating opportunities for Chinese automakers,” said UBS analyst Paul Gong.
Oil prices climbed sharply following the start of the U.S.-Israeli war on Iran in late February, though they have softened this week as reports emerged of a potential interim agreement to end that conflict.
Data from the China Passenger Car Association shows Toyota’s market share slipped by 1.4% in Southeast Asia and 4.1% in Oceania during the first four months of the year. Over that same stretch, Chinese brands picked up ground — Chery grew its share by 1.7% in Southeast Asia, while BYD grabbed an additional 2.5% of the Oceania market.
According to PwC, light vehicle sales across the six largest ASEAN nations totaled 3.28 million in 2024. The firm noted that “Chinese automakers are aggressively challenging Japanese dominance” in those markets.
Having secured a strong foothold in the mass-market EV space, Chinese brands are now setting their sights on the premium and luxury tier abroad. FAW’s Hongqi — a marque historically associated with China’s elite — will make its right-hand-drive debut at the Hong Kong show with its flagship electric SUV, the E-HS9, alongside a new luxury SUV model.
Geely’s upscale brand Zeekr will also be in the spotlight, unveiling its flagship 009 Glory and 9X models under what the company is calling a “luxury, new prologue” strategy aimed at consumers around the world.
