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Changan is the latest Chinese car brand to launch in the UK, doing so with a new £39,990 electric SUV that has been engineered in the UK and designed in Italy.

The Changan Deepal S07 will be in the first of the 20 new Changan dealerships this month and will be followed into showrooms later this year by a smaller Deepal S05 model, which will be revealed at next week’s Munich motor show.

Ex-Nissan executive Nic Thomas is Changan’s UK managing director and told Autocar that the British engineering in the brand’s cars would shine through in how they drive.

“You will see the difference versus some of the other cars that are coming to market,” he said.

Based in Chongqing, Changan can trace its roots back to being a trading arm of the Chinese government back in the 1860s but moved into cars in the 1950s when it started manufacturing Jeeps under licence. Its first own-brand cars followed in the 1980s.

In 2010, it laid the groundwork for a global launch of its models with a UK R&D centre in Birmingham that's home to 100 engineers. This is seen as crucial in ensuring its cars are ready to launch in the UK – as is a design centre in Italy that's home to around 300 designers. 

Work on the Deepal S07 from the UK engineering team included a full rebuild and redesign of the suspension in just three months to make it more suitable for UK roads and driving tastes, plus extensive calibration work on the automated driving assistance functions to better tailor the software. 

"Our software works really well and has been properly tailored to provide a customer a really usable experience," Thomas said. 

The Deepal S07 is a Tesla Model Y-sized crossover that will be sold in just one, fully loaded trim level. It's rear-wheel-drive with a 215bhp, 236lb ft motor and an 80kWh battery that’s good for a 295-mile range. 

While Changan is launching with the Deepal S07 as an EV, a plug-in hybrid version is also set to follow as part of plans for the brand to offer a full range of powertrain options across its line-up.

Deepal is a sub-range of models under the Changan brand, but while in China there are saloons as well as crossovers under the Deepal badge, the range in the UK is set to include only crossovers.

The Deepal S07 is the largest planned for now and the Volvo EX40-sized Deepal S05 is next to follow. Smaller models are also planned that will be priced in the £20,000s.

There's another Changan sub-brand of lower-cost models called Nevo, and these will be launched in the UK also under the Changan badge in the future, which will be the entry point into the brand.

To that end, Changan models will be either a Changan Deepal or a Changan Nevo. 

A third sub-brand, Avatr, exists as a joint venture between Changan and battery maker CATL. Thomas confirmed this brand does have European plans of its own but will exist under different leadership and not be sold in the same showrooms as Deepal and Nevo models.

Changan was the fourth best-selling car-making group in China in the first half of 2025. It has already exported models to the likes of South East Asia and the Middle East before a recent launch in Norway started its European push. The UK launch is one of several others planned into major European markets over the next few months. 

Thomas, the first commercial employee for Changan in Europe when he joined in January 2024, said that the European and UK market preparation had been more than 18 months in the making and included a “contracted and stocked” parts warehouse at East Midlands Airport; work with CAP on residual values to get to what’s claimed to be a best-in-class figure of 47%; work with Thatcham on insurability; and a banking partner.

“We’ve done the things we need to do to make sure that before we deliver a car to a customer. We’re actually ready to look after that customer and are ready to look after the dealers with all the services they then need to look after the customer,” said Thomas.

An initial 20 dealers should be followed by another 25 later this year, with a goal of around 100 targeted in total by Thomas across around 25 different dealer groups.

The likes of Ancaster, Parks, DM Keith and Stoneacre have been signed as dealer partners.

Thomas said Changan doesn't require dealers to give the brand its own bespoke showrooms to ensure that investment costs were kept low, and they can continue to work with other brands in the same space for aftersales. 

“We’ve got a lot of dealers with a legacy brand who will divide a showroom in half and spear them out [for new car sales] but then they’ve still got the aftersales work coming through,” he said. “We believe our products stand up against anybody and are happy to have the opportunity for people to look across and say: ‘What’s that?  We’ll take one of those, please, at least for a test drive.'”

Vehicle quality and customer service are big differentiators for Changan in China, said Thomas, with JD Power ranking Changan as the number-one brand in China for initial vehicle quality. “We need to bring the same level of quality to Europe,” he said.

To that end, Thomas said Changan won't be pushing for quick short-term volume gains that could undermine profitability and residual values.

"The message from China is to build a quality business for the long term," he said. "Do not rush to market. Don't push the product before it's ready. Get it right by adapting to the local market. Build a local team that understands the market. Get the elements in place to deliver quality customer service. That's a very, very clear message from the top.

"Our ambition is not limited. We expect to be one of the leading global automotive companies. We're investing more than $10 billion in new products to support globalisation and new factories."

Thomas said the long-term plan was to be in the top 10 car brands in the UK but didn't put a timeframe on that goal. He believes the focus on quality is what "differentiates us from other new entrants".

European production is possible for Changan in the future too, said Thomas. 

European car makers are betting that advanced technology and their long-standing leadership on design will give the cars displayed at next week’s Munich motor show an edge over formidable Chinese competition.

Munich is shaping up to be the biggest European motor show since the Covid pandemic for new model launches, as European car makers try to rejuvenate a sluggish market. 

However, the Chinese are also at the event in force as they look to increase an already booming market share.

No fewer than 14 Chinese car makers will exhibit at the Munich event, starting on 8 September, compared with 10 European brands, according to data from market researcher Inovev.

Korea's Hyundai and Kia are returning to the event, but the Japanese are absent. Stellantis is represented by Opel/Vauxhall and affiliated Chinese brand Leapmotor.

“This year, the event seems to be primarily a Sino-German battle for supremacy in the electric vehicle arena,” said Jamel Taganza, vice-president at Inovev.

According to Inovev's data, 23 new model launches are electric, three plug-in hybrid and two hybrid. 

The big launches are all on the German side, with BMW premiering its Neue Klasse platform with the new iX3 SUV and Mercedes-Benz unveiling the new electric GLC EQ, debuting the new MB:EA platform. 

Both SUVs are going big on technology that they hope can match or beat equivalent Chinese developments, including 800V platforms for rapid charging and a software-first approach to electronics and digital information. 

For example, the GLC EQ has the largest screen ever fitted to a Mercedes, at 39in wide, while BMW claims an EV range of nearly 500 miles.

The German premium brands are largely insulated from the Chinese in Europe at least, where the competition so far has mainly been hitting the volume end of the market.

That competition has been hotting up in recent months, with the share for Chinese car makers in Europe hitting 5.1% in August, according to figures from the bank UBS.

The rises of MG, BYD and Chery’s Omoda and Jaecoo brands have had big impacts in Spain, where Chinese brands grabbed a massive 12% share in August, and the UK, where the share stood at 7.4%.

“The growing share of Chinese OEMs in Europe is particularly negative for Stellantis and Renault,” UBS bank analyst Patrick Hummel said in a note to investors.

While MG is absent from Munich, BYD showing off its latest PHEV the Seal 06 DM-i estate, while Omoda and Jaecoo are using the event to launch in Germany, marking a push into Europe’s biggest market after successes in the UK, Spain and Italy. Their combined share in the UK for August stood at nearly 3%.

Renault meanwhile chose Munich to launch the latest version of its Clio supermini, its biggest-selling model in the region and a key weapon in its battle to retain and build share at the affordable end of the market.

Aside from the BYD Dolphin Surf and the MG 3, small cars remain a weakness of the Chinese in Europe, and the Volkswagen Group will demonstrate in Munich what it hopes will be a future strength in the arena of small EVs.

It will show off production versions of the related Volkswagen ID Polo, Volkswagen ID Cross, Cupra Raval and Skoda Epiq, albeit camouflaged, in the run-up to the first launch in 2026, with prices promised from around £22,000.

While small cars are good for keeping market share, the opportunity for profit comes from bigger models and that’s where the Europeans are under threat from the Chinese, particularly in China where competition is fiercest.

The cost competitiveness of the Chinese, particularly on EVs, is hurting global players after a prolonged period of rising prices.

“The era of pricing power for the OEMs has come to an early end,” wrote Fabian Piontek, managing director at consultantcy Alix Partners, in a new report.

The report’s data shows that profits have swelled in the 15 years since the global financial crisis through a combination of a pivot to SUVs and then rising prices following the Covid supply squeeze.

That’s now come to a screeching halt with average EBIT (earnings before interest and taxes) margins for car makers in Europe dropping from around 12% in the first quarter of 2023 to around 4% the quarter ending June this year.

Factors include price wars, falling ICE profits, cost inflation and US trade tariffs, according to Piontek.

European car makers are using the show to double down on their design strength – an area in which they remain globally ahead of the field as they look cement their brand advantage and keep pricing power. 

For example, Audi is showing off its new ‘TT’, the Concept C, Cupra is unveiling the Tindaya concept and Skoda is teasing a new electric Octavia estate with the Vision O.

Vauxhall and Hyundai meanwhile are reviving the tried and tested design language of the hot hatch as they unveil concepts previewing the next Corsa supermini and a new compact addition to the Ioniq EV family.

As China marches towards a possible 10% share in Europe by 2030 (Alix Partners’ prediction), it will be the models launched by European car makers at Munich next week that will be charged with slowing that growth.  

BMW has revealed the new iX3, a car that represents the beginning of a bold new era of design, technology, drivability and production methods as the first of its Neue Klasse models.

Making its world debut at the Munich motor show, the new electric SUV – previewed by the Neue Klasse X concept in 2023 – is the result of a £17 billion investment and four years of development. It is seen by the firm as one of its most important model launches to date.

The arrival of the iX3 marks a key milestone in BMW’s electric ambitions. The SUV ushers in an entirely new design that is described as “more BMW than ever”. It will directly influence the next 40 models from the brand. 

BMW Group design boss Adrian van Hooydonk told Autocar: “The task was to create a design language that is brand new and attractive to both people that don’t know us and to people that do know us – but also one that can be traced back to our history, to the ’70s, even to the ’60s. That’s deliberate.”

Notably, the front of the new iX3 dispenses with the controversially large kidney grille of the previous era and replaces it with a new design that references Neue Klasse models from the ’60s and ’70s. The kidneys are also illuminated, rather than picked out in chrome, in an environmentally motivated move.

The design feature of narrow kidney grilles and headlights contained “as one graphical unit” is a nod to the BMW 2002 ‘Sharknose’, said Van Hooydonk.

Each Neue Klasse model will get its own “unique” light signature, he added, “so in the future, when we come with more Neue Klasse cars, each of them will be instantly recognisable”. For example, said van Hooydonk, the iX3 has a vertically oriented grille but the incoming i3’s will be horizontal. The new SUV measures 4782mm in length, 1895mm in width and 1635mm in height, making it similar in size to the incoming electric Porsche Macan and Audi Q6 E-tron.

New platform

The new iX3 is the first model to use the BMW Group’s new Gen6 platform, a cleansheet architecture that is said to be a “quantum leap forward” in terms of technology compared with today’s offerings.

The platform’s 800V electric architecture can handle a charging speed of up to 400kW – which, in theory, means the ability to add 217 miles of range in 10 minutes, although BMW admits this rate can be held for only around two to three minutes. It is also equipped with bidirectional charging – a first for BMW.

At its launch, the iX3 will be offered exclusively in 50 xDrive form, which draws electricity from a new 108kWh nickelmanganese-cobalt (NMC) battery. This uses cylindrical cells that are 20% denser and easier to package than modules (made up of square cells) found in today’s Gen5 packs.

Range increases by 30%, efficiency by 20% and charging speeds by 30%. The new cells also reduce production costs by up to 50%.

As a result, the 50 xDrive offers a WLTP range of 500 miles, which makes it the longest-range EV on sale in the UK, surpassing the Mercedes-Benz CLA. That’s despite power being deployed by two motors rather than one – traditionally not the most efficient set-up. Range is expected to increase further when a more effi cient, single-motor, rear-drive entry-level variant arrives next year.

The impressive range figure is also aided by the iX3’s design. The sleek bodywork helps to achieve a drag coefficient of 0.24, which, BMW claims, makes it the most aerodynamic mid-size SUV on sale. The iX3 also has bespoke tyres that are claimed to reduce rolling resistance by 12%, adding 25 miles of range.

The 50 xDrive has a pair of excited synchronous motors which produce a combined 464bhp and 479lb ft, which enables the SUV to cover 0-62mph in a claimed 4.9sec. Top speed is governed at 130mph. 

BMW has focused on giving the iX3 BMW-typical handling characteristics. Key to this is the new ‘Heart of Joy’ digitised nervous system, which controls everything about the driving experience. But van Hoydook emphasised that “it is built for driving” and is “not a computer on wheels”.

In another first for BMW, the iX3 uses pack-to-open-body construction, in which the packs are bolted directly to the chassis. This is said to increase structural integrity, optimises car integration, saves money on parts and reduces weight.

Interior

The new construction method also increases interior space. In an unusual move, BMW has bolted the front seats of the iX3 directly to the battery pack. This also keeps the car’s height as low as possible to aid aerodynamics.

The exterior’s minimalist design theme continues in the cabin. Previewed earlier this year, it is centred around a 17.9in infotainment screen that houses the controls for most of the car’s functions and runs BMW’s latest iDrive software.

Another first is the new ‘panoramic iDrive’ display. This 43.3in projection runs across the length of the dashboard just under the driver’s eyeline and displays key details such as vehicle speed and state of charge.

Some of the biggest challenges were to integrate the panoramic vision display and to set it up just right,” said van Hooydonk. 

In another change, the new steering wheel adopts haptic controls.

Boot space is 520 litres with the seats up and 1750 litres with them folded down. There is also a 78-litre storage space under the bonnet.

The iX3 will be produced at BMW’s Debrecen plant in Hungary. UK pricing for the 50 xDrive will start at £58,755 and top out at £62,755 for the 50 xDrive M Sport Pro. First deliveries will begin early next year.

BMW has shown the new electric BMW 3 Series for the first time, and confirmed it will arrive next year badged i3.

Revealed in camouflaged-form at the launch of the new iX3 SUV on Friday, the car has evolved from the striking Vision Neue Klasse concept that was revealed in 2023. The saloon will become the second model in its Neue Klasse age. 

It is the first time the brand has offered a 3 Series-sized model with an electric powertrain. When it arrives next year it will be the smallest EV the brand offers.

It will also be the first car to use the i3 badge since the previous BMW i3 went out of production in 2022.

Speaking at the iX3 launch, BMW chairman Oliver Zipse said: “This is the new i3 that will arrive next year and he all electric. It’s the first model variant of the new 3 Series generation.

“You will recognise classic proportions of a typical sporty BMW. 

“For the past 50 years across multiple model generations no other model has been as tied to the BMW brand as the 3 Series. It represents sheer driving pleasure at its finest.

"The iX3 and i3 are powerful symbol of the broad spectrum the Neue Klasse models will cover.”

When the iX3 and i3 arrive next year, they will spearhead a huge product offensive from BMW. Zipse said that, starting next year, the brand will launch a new version of each model, adding: “We will launch 40 new and  updated models by 2027”

Shown for the first time under camouflage, the i3 appeared in production form. The car has been spotted testing over the past year (below).

While arriving first in electric i3 form, the eighth generation 3 Series will continue to be offered with ICE power as it moves onto BMW's completely new, EV-first architecture. This 800V Gen6 platform is the same as what underpins the larger iX3.

While the iX3 launches as the longest-ranged EV on the market with a range of 500 miles, expect the i3’s lower and sleeker shape to push this further.

Power will likely match the iX3, which at launch is offered with 464bhp and 479lb ft from a dual-motor set up. This enables the SUV to cover 0-62mph in a claimed 4.9sec. Other power configurations are planned.

BMW has already teased an electric M3 with the M HP BE test mule. Due in 2028, BMW has promised that the crucial sports saloon will “set new standards" for electric performance.

The car is also set to get a Touring estate version, BMW Group design boss Adrian van Hooydonk previously told Autocar.