Chinese luxury electric-vehicle buyers make their purchase decisions in a specific order - first the price tier, then the powertrain - and what they are really buying is social standing, according to a senior researcher at the China Automotive Technology and Research Center (CATARC). Yang Jing, chief expert at CATARC, made the remarks at the 2026 TEDA Automotive Forum in Tianjin, where she outlined what she calls the five questions premium brands must answer to break into the million-yuan segment.
Yang's speech, reported by Gasgoo and republished by D1EV, was based on a survey of ultra-luxury car owners. She said core buyers of 100,000-yuan-plus (about $14,100) new-energy vehicles are mainly first-generation entrepreneurs, second-generation heirs and corporate executives. For this group, the new-energy attribute is only an added emotional value, not the main reason to buy, she said.
Reliability beats technology
Yang cautioned that the premium market is not naturally a profit machine. Reliability and safety are the first demands of buyers, while technology is merely an entry ticket, she said. She also argued that the logic of premium pricing is shifting from symbolic and single-technology premiums to a systematic experience premium covering five sensory dimensions - sight, smell, hearing, touch and body perception.
On safety and reliability, Yang said brands should be judged by real-world road testing and by how they manage risks in the battery, electric motor and electronic control systems - the so-called three-electric package. She also flagged resale value as key to sustaining a premium image, suggesting a reasonable industry target of 70% residual value after one year and 60% after three years.
Five questions for premium aspirants
Yang proposed five questions that any brand aiming for the million-yuan segment must answer: define its genuine technological strengths, build a proprietary system-level aesthetic, create circle-based and customised value, improve resale value through rights transfer mechanisms, and develop scenario-specific services that complete a closed loop from product to customer advocacy.
The remarks come as Chinese EV makers, including BYD's Yangwang brand and Huawei-backed Aito, push into price segments once dominated by imported combustion-engine luxury cars. Yang's framing suggests that simply adding premium features or a high price tag will not be enough - brands must build a coherent, system-level experience that resonates with wealthy buyers' social identity, according to Gasgoo.
Yang did not name any specific brand in her speech, and no sales figures or model details were disclosed. The TEDA forum, held annually in Tianjin, is one of China's key policy and industry events for the automotive sector.
