Beyond Product Export! Li Auto Sets Its Sights On Europe—How Systematic Deep Engagement Can Drive Upgrades In The Plastics And Chemical Supply Chain

On February 24, 2026, Li Auto officially joined the EU-China Chamber of Commerce as a member and became part of its Automotive Working Group. This news may seem like a routine business organizational update, but in the current context where China's new energy vehicle industry is entering deeper waters in its overseas expansion, this move carries symbolic significance.

Image source: Li Auto official website

It reveals an emerging industry consensus: in the European market, characterized by strict regulations, mature competition, and demanding users, sustainable success cannot rely solely on a single breakthrough in product cost-effectiveness, but must depend on a complete, verified system of business and technology, which can be transplanted and regenerated in diverse environments.

1.Deep Cultivation in the Local Market: Building a Transferable Core Competency System

Before discussing its overseas expansion, it is necessary to first clarify the core capabilities that Li Auto has relied on for its success in the domestic market. These capabilities are precisely the foundation of its confidence in systematically migrating its operations.

First is the ability to precisely define the market and build a structured advantage.The most praiseworthy aspect of ideal is the insight to open up a new market in what seems to be a saturated one.It firmly anchors itself on the “family user” as its core demographic, concentrating R&D and resource allocation on fundamental yet essential needs—spatial efficiency, comfort, safety, and freedom from range anxiety—thereby establishing a clear, price-tiered product lineup spanning the L7 to L9 models. This “scenario-defined product” philosophy avoids futile, parameter-driven competition and instead builds a highly cohesive user experience loop. Its products’ high “usable interior space ratio,” exceptional quietness, and meticulous attention to family-friendly details all rely on end-to-end synergy across vehicle architecture, interior engineering, and material application.

Photo source: Li Auto official website

Secondly, it is a pragmatic and forward-looking technological strategic layout.Ideal“Extended Range+"Pure electric"The dual-track strategy reflects a pragmatism grounded in users’ real-world circumstances.Extended-range electric technology effectively addresses the pain points of full-scenario travel for family users, backed by in-depth self-research and development in the areas of range extender efficiency, thermal management, and battery safety. At the same time, the rapid advancement of the 800V high-voltage pure electric platform demonstrates a forward-looking technology reserve. This R&D system, which does not debate the route but focuses on solving anxieties, possesses a strong problem-oriented and rapid iteration capability, providing a solid technical foundation for efficiently adapting to local road conditions, climate, and regulations in Europe after going global.

Ultimately, it is a deep trust ecosystem built with the user at the center.Li Auto redefines automobiles from tools to...“A Mobile Home, and with this at its core, it has built a comprehensive system covering transparent direct sales, efficient after-sales service, and continuous OTA updates.Upgrade and activate the community interaction service system.The essence of this system lies in digitizing and institutionalizing high-standard service processes and in-depth user operations. Replicating it fully in Europe poses challenges due to cultural differences and regulatory environments; however, once successfully implemented, the resulting brand loyalty and reputational moat will be exceptionally difficult to surpass.

It is precisely based on the aforementioned domestically validated, comprehensive capability model that Li Auto has gained the confidence and foundation to export its "system," rather than just its "products," overseas.

2.Expanding into Europe: Systematic Deepening of R&D, Compliance, and Market Presence

From registering its first overseas R&D entity in 2024, to establishing a German R&D center at the beginning of 2025, and now joining a core industry organization of Chinese enterprises in Europe, Li Auto's pace of entering the European market is clearly accelerating. Its European practice presents a clear "systematic" approach, which is based on the dual localization of R&D and compliance, systematically advancing a deep layout.

Localization of R&D is the first step in taking deep root.Establishing an R&D center in Munich, Germany, and forming a fully integrated team covering styling, chassis, electric drive systems, and regulatory certification clearly signals a strategic intent: this is not merely about setting up an overseas office, but about building “native development capabilities rooted in European regulations and market demands.” This means that future products must be deeply aligned with European standards, aesthetics, and usage conditions right from the conceptual stage. This sends a strong signal to the supply chain: technical specifications for components, testing and validation processes, and particularly environmental and safety regulations (such as REACH, ELV, and GS certification), must seamlessly transition from Chinese to European standards and proactively meet them.

Compliance and operational localization are the lifeline of business.Recently, Li Auto’s job posting in Europe for a Vice President of Sales specifically emphasized expertise in the GDPR (General Data Protection Regulation), antitrust laws, and electric vehicle subsidy policies. This reveals its determination—not only to sell products, but also to ensure that its entire commercial operations, including marketing, user data management, and after-sales services, function compliantly and smoothly within the local legal framework. Joining the China Chamber of Commerce in the European Union represents an even higher-level integration into the ecosystem, aiming to leverage organized collective strength to better understand policy trends, participate in industry dialogues, and safeguard its own interests—a demonstration of systematic business acumen.

In terms of market entry, Li Auto chose to find the intersection of differentiation and technological policy.Choosing to accelerate its entry into the European market at this time is based on a comprehensive assessment: intensifying domestic market competition is generating outward pressure; Sino-European trade conditions have experienced a temporary easing; and, more importantly, its flagship extended-range electric vehicle (EREV) technology may face a different regulatory and tariff landscape in the EU compared to battery electric vehicles (BEVs). Additionally, the current state of Europe’s charging infrastructure presents a realistic market opportunity for “fuel-or-electric” solutions. This decision reflects a pragmatic strategy—avoiding head-on competition and instead leveraging differentiated technology to address specific market needs.

3.Implications for the Plastics IndustryFrom Supply Chain Partner to Value-Aligned Partner

The systematic overseas expansion of Li Auto not only concerns itself, but also portrays a new collaborative landscape for its upstream and downstream industries, especially the plastic industry that focuses on technology and solutions, and puts forward requirements for role upgrading.

Image source: Li Auto official website

First,Cooperative relationship needs to be established from“supply chain R&D Chain In the past, cooperation was more focused on optimizing cost, quality, and delivery. In the future, automakers will need partners capable of cross-border and cross-cycle collaboration. For example, to meet the European market's stringent requirements for interior environmental performance, texture, lightweighting, and sustainability, material suppliers need to be involved in advance, jointly developing innovative material solutions that comply with European standards and offer competitive advantages. In some cases, they may even need to establish local application technical support and rapid response capabilities in Europe.

Second,The innovation direction must closely align with“Value Resonance "Regulation-driven"Ideal success lies in precisely capturing the “perceived value” of household users. In Europe, this perceived value strongly resonates with societal consensus on “sustainability,” “circular economy,” and “healthy living.” Therefore, material innovation is not only about performance but also about storytelling.Bio-based polymers, engineering plastics with low carbon footprint, composite materials that are easy to recycle and reuse, and those with antibacterial properties and lowVOCThe value of the interior materials will be amplified and premium in the European market.

Third,ESGCarbon management from ""Competitive Advantage" Becomes “Access QualificationAs policies such as the EU Carbon Border Adjustment Mechanism (CBAM) deepen, the carbon footprint of vehicles will be traced back through the supply chain. If Li Auto aims to establish a high-end and responsible corporate image in Europe, the green and low-carbon level of its supply chain will become a key focus of audits. Companies that can provide clear product carbon footprint data, use green energy in production, and are committed to closed-loop recycling will occupy an indispensable core position in the future supply chain system.

Li Auto's entry into the China Chamber of Commerce in the EU is a clear indication that its "system-based internationalization" strategy has entered a substantive phase of in-depth development. It signals that the global competition of China's leading automakers has entered a new dimension centered on local depth, systematic capabilities, and compliant operations.

This expedition tests the ability of the original equipment manufacturers to transplant and regenerate a complex and organic business ecosystem across cultures. At the same time, it also extends an invitation for upgrading to the partners in the industrial chain: Can the plastic industry transcend the role of "supplier" and evolve into an indispensable "value co-creator" in the process of the manufacturers expanding their global market?

Editor: Lily

Source materials: Gasgoo, ITHome, Yu Jian’s Column, etc.