Mainland electric vehicles attack Hong Kong

Hong Kong billionaire Liu Luanxiong and his ZEEKR car once again staged a "mutual pursuit."

On October 13, 2025, under the escort of a fleet of ZEEKR 009 cars, Liu Luanxiong, who had not been seen for a long time, casually got out of the car in his pajamas and walked straight to the ZEEKR store in Hong Kong, with a clear goal: to acquire the newly launched ZEEKR 9X.

This Forbes top five business magnate's preference for ZEEKR has long been filled with details: not only did he purchase 6 ZEEKR 009s at once, but he also solemnly hung the meaningful "I Love You" exclusive license plate on the ZEEKR 009.

This license plate has accompanied Liu Luanxiong's Mercedes-Benz S500 and Toyota Alphard, reflecting the choices of Hong Kong's wealthy like a mirror of trends.

Once upon a time, foreign brands represented by the Alphard were the standard vehicles for Hong Kong's top billionaires and celebrities, and that "Hong Kong style" even blew into the mainland.

Now, the wind has quietly reversed. Domestic automobile brands from the mainland are stirring up a lively car replacement wave in Hong Kong.

In September 2025, the top 10 brands for first-time registration of private cars in Hong Kong saw domestic smart electric vehicles collectively "break the circle": ZEEKR topped the list with 546 registrations, capturing 11.7% market share, followed by Aion with 246 (5.3%), XPeng with 120 (2.6%), and MG with 109 (2.3%).

These numbers reflect a subtle shift in the attitudes of Hong Kong car consumers, from initially trying it out to actively recommending it to friends, as domestic smart electric vehicles gradually break the ingrained impression that foreign brands are more reliable.

Starting with MPVs, domestic brands are attacking Hong Kong

As a city without local automobile manufacturers, Hong Kong's car market has long been dominated by international brands from Japan, Germany, and the UK, with Toyota and Tesla becoming the favorites of Hong Kong residents.

From 2017 to 2023, the number of newly registered electric private cars in Hong Kong reached 62,458, among which Tesla accounted for 33,909, with a market share of 54.3%, exceeding half.

Street shops in core business districts like Gloucester Road were once exclusive showcases for foreign automobile brands, but familiar street scenes are quietly changing in recent years.

Domestic automobile brands like ZEEKR, XPeng, and MG have replaced the original brands, with bright windows displaying trendy new domestic cars, injecting fresh vitality into the street.

Domestic brands first targeted the MPV market, where the share of MPVs in the "city of seven-seater cars" could exceed 10% during peak periods, with the Toyota Alphard leading the way Starting from 2024, domestically manufactured new energy MPVs will begin to make inroads into Hong Kong.

On January 29, 2024, the Volvo EM90 held its launch event in the southern district of Hong Kong.

On July 19, 2024, the new ZEEKR 009 held its global launch in Hong Kong, introducing a seven-seat version for the first time.

Also on July 19, 2024, XPeng's first showroom in Yuen Long, Hong Kong officially opened, announcing that the XPeng G6 and XPeng X9 had received 500 orders in Hong Kong.

Earlier than them, SAIC Maxus's D60 and D90 had already landed on Hong Kong Island and achieved good results.

Over the course of a year, under the siege of domestic MPVs, the Alphard has been steadily declining, once a car that commanded price increases, now its sales have fallen out of the top three rankings.

Entering 2025, more domestic models will enter the market, and products will begin to flourish.

On February 14, the DEEPAL S07 began pre-sales in Hong Kong, with a starting price of HKD 248,800.

On April 15, XPeng held its first global brand launch event in Hong Kong—XPeng Global Love Night 2025, announcing the launch of the first global flagship XPeng X9.

On June 10, the IM Motors IM5 and IM6 were launched in Hong Kong, corresponding to the domestic market's IM L6 and LS6, with starting prices of HKD 268,800 and HKD 269,800, respectively;

On June 12, Hong Kong even began hosting the 2025 International Automotive and Supply Chain Expo (Hong Kong), where many domestic car companies showcased their electrified models. The DEEPAL S07 initiated its first round of deliveries to Hong Kong car owners at this auto show.

On September 10, the Dongfeng Yipai 007 was launched in Hong Kong, and on the same day, a new showroom opened in Kowloon Bay, Hong Kong;

On October 9, at the launch event for the Geely Xingyuan, Hong Kong star Cecilia Cheung appeared, and Geely Automobile Sales Company General Manager Fan Junyi announced that the Xingyuan would soon enter Hong Kong. This is a small car priced between HKD 69,800 and HKD 98,800.

On October 16, the GAC Toyota BZ3 was launched in Hong Kong, priced between HKD 109,800 and HKD 159,800...

From high-end MPVs to everyday vehicles, domestic brands are carving out a place in Hong Kong. As of July 2025, the number of electric vehicles in Hong Kong has exceeded 120,000, accounting for about 14.3% of the total number of vehicles. Currently, 7 out of every 10 newly registered private cars in Hong Kong are electric vehicles.

Chen Qingquan, an academician of the Chinese Academy of Engineering and a professor at the University of Hong Kong, known as the "Father of Electric Vehicles in Asia," believes that the excellent cost-performance ratio of domestic electric vehicles is key to their significant rise in the Hong Kong market He pointed out that this cost advantage mainly benefits from the mainland's complete and efficient electric vehicle supply chain—key components such as batteries, electric drive systems, and body manufacturing have all achieved mature matching.

The Hong Kong Wen Wei Po wrote that mainland brands not only have stylish appearances but are also equipped with features such as electric massage seats, intelligent cockpits, and exquisite leather interiors, which were previously only seen in high-end luxury cars. Coupled with high-quality after-sales service, the prices are only 30% to 50% of those of overseas luxury brands.

Mainland brands have also made localized adjustments based on the needs of Hong Kong users.

For example, with many Apple users in Hong Kong, GAC Toyota's Platinum Smart 3X debuted with standard CarPlay; considering that Cantonese is the daily communication language, ZEEKR, XPeng, and others support native Cantonese voice control; to address the common concern of Hong Kong users regarding the difficulty of turning large vehicles, the XPeng X9 is equipped with a rear-wheel steering function...

Beyond products, car companies have also transplanted their successful experiences from the mainland to the Hong Kong market: "To get rich, first build the road," tackling both charging infrastructure and car sales simultaneously.

Multiple brands, including XPeng, ZEEKR, and GAC, have actively partnered with local operators in Hong Kong to lay out charging networks in core business districts, striving to completely eliminate the promotion barrier of "charging difficulties."

Hong Kong, a Land of Electric Vehicles

The rapid success of mainland brands is inseparable from Hong Kong's favorable policy environment.

Due to Hong Kong's small territory and high demand for clean air, the government has long prioritized the promotion of electric vehicles.

The "Hong Kong Electric Vehicle Popularization Roadmap" introduced in 2021 set hard targets for all car companies: to stop selling new fuel and hybrid private cars by 2035 and achieve carbon neutrality by 2050.

To encourage consumers to choose electric vehicles, the government has also introduced substantial incentive policies.

In Hong Kong, just the first registration tax can deter potential car buyers. The first HKD 150,000 of the car price is taxed at 46%, the next HKD 150,000 at 86%, and any amount over HKD 500,000 incurs a heavy tax of 132%.

As the saying goes, "the more expensive the car, the harsher the tax." For instance, Hong Kong's "Video King" Lo Man-Tong spent HKD 17.35 million on a Hongqi Golden Sunflower national gift car, paying HKD 9.77 million in taxes, which is more than double the base price of HKD 7.58 million.

However, electric vehicle owners can enjoy tax benefits through the "one-for-one plan": before March 31, 2026, scrapping an old fuel vehicle for an electric vehicle can yield a maximum tax reduction of HKD 172,500; directly purchasing a new electric vehicle can also enjoy a tax exemption of HKD 58,500.

Not only is there a tax incentive for purchasing vehicles, but due to different calculation methods, the license fees for fuel vehicles and electric vehicles also differ significantly.

As of the end of 2025, the license fee for electric vehicles is calculated based on the vehicle's net weight, with the first ton costing approximately HKD 572, and an additional HKD 124 for every 250 kilograms thereafter, averaging an annual fee of about HKD 1,100 In contrast, the annual license fee for fuel vehicles, calculated by engine capacity, typically ranges from HKD 5,074 to HKD 16,592, averaging HKD 7,500, which is nearly seven times that of electric vehicles.

The convenience of charging is also one of the biggest concerns for car owners, and Hong Kong is accelerating efforts to address this issue.

The government has launched a total of HKD 3.5 billion "EV Estate Charging Easy Subsidy Scheme" to install charging facilities in approximately 140,000 parking spaces across about 700 existing private residential buildings.

According to the plan, by 2027, the number of parking spaces equipped with charging facilities in Hong Kong will increase to about 200,000, demonstrating Hong Kong's firm commitment to prioritizing the charging needs of residential areas.

This layout aligns well with Hong Kong's "small and dense" urban characteristics. While focusing on residential scenarios, Hong Kong is also continuously improving the public charging network.

As of March 2025, there are 11,188 public electric vehicle charging stations in Hong Kong, including 7,112 medium charging stations and 2,028 fast charging stations.

With favorable policies in place, choosing to purchase an electric vehicle is a practical way for Hong Kong consumers to save money in their daily use.

In terms of energy costs, the electricity cost for electric vehicles is only about HKD 0.4-0.6 per kilometer. Assuming a daily driving distance of 50 kilometers, the monthly electricity cost is about HKD 600-900; in contrast, the fuel cost for fuel vehicles reaches HKD 1.6-2 per kilometer, resulting in a monthly fuel cost of HKD 2,400-3,000 for the same distance, showing a significant difference.

Regarding maintenance costs, electric vehicles have lower average maintenance expenses due to their simple structure, approximately HKD 4,500, while fuel vehicles incur costs that are double that of electric vehicles.

Additionally, Hong Kong's subtropical climate provides an ideal operating environment for electric vehicles. The warm climate not only ensures the stability of battery range performance but also effectively extends battery lifespan, alleviating the concerns of car owners regarding battery replacement to some extent.

A Key Springboard for Mainland Car Companies to Go Global

As competition in the mainland automotive industry becomes increasingly fierce, Hong Kong is becoming a key springboard for mainland car companies to enter the global market.

Wilson Lam, a director at the automotive dealer Renfu Group, stated in an interview with the South China Morning Post: "In the mainland, consumers have their unique culture and preferred styles. Cars designed according to mainland consumer preferences may not be suitable for consumers in Europe, America, and Southeast Asia. These brands can adjust and improve based on feedback from Hong Kong consumers."

For mainland car companies looking to expand into right-hand drive markets such as Australia, the UK, New Zealand, Southeast Asia, and South Africa, the value of Hong Kong is self-evident.

After all, completing the localization testing of right-hand drive models in Hong Kong is equivalent to obtaining a prerequisite pass to enter these markets.

"The Platinum Smart 3X plan aims to sell to markets outside mainland China that have demand," said Wen Dali, Executive Vice President of GAC Toyota, emphatically at the launch of GAC Toyota's 2026 global vehicle. GAC Toyota chose Hong Kong as its first stop outside the mainland.

For mainland independent automotive brands, Hong Kong has long surpassed the competition for a market that sells tens of thousands of vehicles annually "Although the Hong Kong market is relatively small, with annual sales of only about 40,000 to 50,000 vehicles, it is an important platform for global capital to understand Leapmotor." In June 2025, when Leapmotor's first store in Hong Kong officially opened, founder and chairman Zhu Jiangming said.

At the beginning of 2025, Li Auto established its overseas headquarters in Hong Kong, using it as a strategic base for global expansion.

In this regard, Li Auto's financial compliance director Wang Tianqi said: "As an international financial center and a hub for technological innovation, Hong Kong provides us with unique resources and platforms, helping Li Auto achieve greater breakthroughs on the global stage."

He stated that the Hong Kong Special Administrative Region government's forward-looking layout in the artificial intelligence ecosystem and various favorable policies are key factors attracting us to settle here.

Today, mainland car manufacturers and supply chain companies are lining up to list on the Hong Kong stock market, and Hong Kong's irreplaceable financial advantages are its unique value.

With a mature financial industry, a free capital flow environment, and being the world's largest offshore RMB market, Hong Kong can provide support to mainland electric vehicle companies that mainland banks cannot offer.

In terms of capital flow, mainland China has corresponding reviews and restrictions. In contrast, Hong Kong, as a Special Administrative Region, enjoys a unique financial status and is not subject to these rules.

Hong Kong Chief Executive John Lee also emphasized: "Hong Kong's global capital market and world-class professional services can help mainland electric vehicle companies obtain financing and promote products overseas."

Overall, from 2014 to 2024, the total amount of new stock financing on the Hong Kong Stock Exchange reached $305 billion, ranking first in the world. Although it has encountered a downturn in recent years, in the first quarter of 2025, driven by new energy companies, the financing amount reached $20.5 billion, setting a quarterly high in four years.

As of March 2025, the market value of the new energy sector in the Hong Kong stock market has increased approximately fourfold since 2015, reaching $568 billion, accounting for 12.5% of the total market value.

This growth not only highlights the capital market's high recognition of the new energy industry but also confirms Hong Kong's strong capability in supporting the sustainable development of capital-intensive industries such as electric vehicles and renewable energy.

Recently, an attractive piece of news is that the emerging electric vehicle brand BeyonCa will establish its first electric vehicle factory at the Tai Po Advanced Manufacturing Base in Hong Kong Science Park, planning to launch its first mass-produced model, Grand Tourer, as early as the end of October 2025.

This luxury sedan, designed for high-speed long-distance travel, relies on the "Hong Kong design + mainland manufacturing" model, primarily targeting the European and Middle Eastern markets Observers believe that a Hong Kong brand relying on mainland automotive technology and supply chains can leave a deep impression on international electric vehicle supporters with its unique brand image.

The historically rich Hongqi brand has also announced plans to set up production in Hong Kong. Sun Dong, the Secretary for Innovation and Technology of Hong Kong, stated that relevant consultations are progressing in an orderly manner, "and all parties need to remain patient."

A revolution in the automotive industry is brewing in Hong Kong.

Author: Du Yongfang, Source: Automotive Business Review, Original Title: "Mainland Electric Vehicles Launching a Frenzied Attack on Hong Kong"

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