China’s EV industry delivered a revealing mix of product marketing, autonomous-driving stress tests, and global expansion news this week. In China, GAC Aion’s N60 emerged as the standout performer in a difficult urban NOA competition in Guiyang, while Changan deepened its partnership with Huawei beyond in-car features into AI models and computing infrastructure. Overseas, SAIC moved closer to building its first European MG plant in Spain, and XPeng gained another foothold in Europe through Porsche’s planned 2026-2027 emissions pooling arrangement.
GAC Aion Tops a Brutal Urban NOA Test in Guiyang
One of the week’s most technically interesting stories came from D1EV’s autonomous-driving competition in Guiyang, a city course described by organizers as their toughest yet in 30 stops. The most telling challenge was a narrow two-way, single-lane street on Jincang Road that required a three-point turn under real mixed traffic conditions.
Out of 12 vehicles, 11 required driver takeover at that single turning point. Only the GAC Aion N60, using a WeRide solution rated at 200 TOPS, completed the maneuver on its own.
Key results from the preliminaries
- GAC Aion N60: 117.81/120
- NIO ES8: 97.5/120
- Exeed Sterra ET: 96.5/120
- Luxeed R7: 88.42/120
- Aito M9: 84.92/120
The Aion N60 also posted:
- Zero takeover record in the official final scoring
- Zero deductions in full-scenario NOA capability
- 4.81 perfect-score metric, highest in the field
That said, the result was not without controversy. D1EV noted that one earlier takeover in a park section was later removed after a review by the chief judge. The publication also highlighted a disputed moment during the three-point turn, when an occupant reportedly called out to a nearby driver, prompting the car ahead to make room.
Why this test mattered
This was not a lab demo or a manufacturer-led showcase. D1EV described the series as a long-running, sponsor-free public comparison of mass-production intelligent driving systems. That matters because the Guiyang result underscored a growing reality in China’s smart EV market: headline hardware does not always guarantee the best real-world city driving performance.
For example, the NIO ES8 carried three lidar units and more than 1,000 TOPS of compute, yet finished well behind the Aion N60. Huawei-backed entries also struggled at the three-point turn despite otherwise strong performances elsewhere.
Urban NOA results at a glance
| Model | AD/NOA Supplier or System | Compute | Score | Notable takeaway |
|---|---|---|---|---|
| GAC Aion N60 | WeRide | 200 TOPS | 117.81 | Only car to complete key three-point turn |
| NIO ES8 | Cedar 1.5.5 CN | 1000+ TOPS | 97.5 | Strong hardware, but needed takeover |
| Exeed Sterra ET | WeRide-based solution | N/A | 96.5 | Performed well, but got trapped by traffic |
| Luxeed R7 | Huawei ADS Max V4.1.5 | N/A | 88.42 | Stable elsewhere, failed at turn challenge |
| Aito M9 | Huawei ADS Max V5.0.0 | N/A | 84.92 | Tried the maneuver, but trajectory broke down |
The broader takeaway is clear: in Chinese autonomous driving, software behavior, planning logic, and interaction with human traffic matter as much as raw sensors and compute.
Changan and Huawei Push Deeper Into the AI Stack
On August 11 in Shenzhen, Changan Automobile Group and Huawei signed a new strategic framework agreement that expands cooperation well beyond smart cockpits and driver assistance.
According to the announcement, the two sides will explore collaboration in:
- AI products and use cases
- General-purpose and automotive vertical large models
- Digital platforms and enterprise foundations
- Computing power
- Software and hardware integration
- Digital energy
- International expansion
- Digital talent development
This is important because it signals a transition from “using Huawei features” to potentially building on Huawei’s deeper AI and ICT infrastructure.
Why this partnership stands out now
The timing matters. In July 2025, China formally established Changan Automobile Group as a new centrally administered state-owned automaker, creating a three-pillar structure alongside FAW and Dongfeng. For the newly structured group, accelerating intelligent transformation is a strategic imperative, not just a product roadmap item.
Changan and Huawei already have a long relationship:
- November 2023: signed an investment cooperation memorandum
- August 2024: Avatr signed an investment agreement involving Huawei’s Yinwang platform
- 2025: Avatr completed an investment for a 10% stake
The new agreement broadens the scope to the layers that shape long-term competitiveness: foundational AI models, compute resources, and digital systems for development and manufacturing.
The strategic trade-off
This is also where the story gets more nuanced. Huawei’s capabilities in computing, AI, and automotive software are attractive to legacy automakers trying to close the smart EV gap quickly. But the deeper the cooperation goes, the bigger the question becomes:
How much core technology control is Changan willing to outsource?
That tension will define many future Chinese EV partnerships. Carmakers want speed and capability, but they also want to avoid becoming assemblers of someone else’s digital platform.
SAIC’s Spain Factory Plan Gains Momentum
In Europe, SAIC Motor appears closer to winning approval for its proposed vehicle plant in Galicia, Spain, according to comments cited by D1EV from foreign media and Spanish officials.
The project is significant because it would become SAIC’s first MG factory in Europe, strengthening its localization strategy as Chinese automakers respond to trade pressure and tariffs.
What we know so far
- Location: Galicia, Spain
- Initial investment: about €200 million
- Planned production start: 2028
- Maximum annual capacity: 120,000 vehicles
The plan had reportedly faced scrutiny because the site is near a Spanish naval base. However, officials cited in the report said the defense ministry had no security concerns after months of discussion with SAIC, though final approval still requires review by the Strategic Investments Committee.
Why Europe matters for SAIC and MG
MG has been one of the most successful Chinese auto brands in Europe, but tariff pressure is forcing a shift from pure exports to local manufacturing. A Spanish plant could help SAIC:
- Reduce exposure to import duties
- Improve delivery times
- Increase political acceptance through local job creation
- Build a more durable European footprint
Still, localization is not a free win. The key question is whether Spain-built MG vehicles can maintain the brand’s price-to-value advantage after higher European labor and operating costs are factored in.
Porsche and XPeng Find Common Ground in Europe
Another notable Europe story involved Porsche and XPeng. According to documents filed with the European Commission and cited in the source report, Porsche plans to form an emissions pool with XPeng for 2026-2027.
This arrangement would allow Porsche to use XPeng’s all-EV sales profile in Europe to help reduce compliance risk under the EU’s fleet CO2 rules.
The numbers behind the move
- Volkswagen Group average CO2 emissions in 2025: 100 g/km
- EU target: 93.6 g/km
- Potential VW Group fines for 2025-2027: up to €1.5 billion
- Estimated annual fines: €400 million-€500 million
Porsche has become a weak point in that calculation as it leans back toward combustion models and struggles with EV momentum.
By mid-year:
- Taycan sales were down about 20% year-on-year
- Electric Macan sales in Europe were down about 30%
- Porsche fleet average CO2 emissions rose to 130.2 g/km, up from 118.5 g/km a year earlier
Meanwhile, XPeng’s Europe sales rose 126% year-on-year to about 19,000 units through June.
Why this is a smart deal for both sides
For Porsche, joining forces with XPeng is likely cheaper than paying EU penalties. For XPeng, the benefit goes beyond vehicle sales: it opens a potentially steadier monetization channel in Europe through compliance value.
This also fits a broader pattern. Volkswagen already invested roughly $700 million in XPeng in 2023 for a 5% stake, partly to access software architecture and AI capabilities, and the two companies have already been co-developing vehicles for China.
Europe-related comparison
| Company | Europe-related move | Key figure | Strategic purpose |
|---|---|---|---|
| SAIC / MG | Spain factory plan | €200 million, 120,000 units/year | Localize manufacturing, reduce tariff exposure |
| Porsche | Emissions pool with XPeng | 2026-2027 compliance window | Reduce CO2 penalty risk |
| XPeng | EV sales growth in Europe | 19,000 units, +126% YoY | Scale sales and monetize compliance value |
Wey Gaoshan Tries to Redefine the MPV for Active Families
Not all of this week’s EV news was about geopolitics and autonomous driving. Great Wall Motor’s premium Wey Gaoshan MPV pushed a different message: the electrified MPV as a lifestyle vehicle for fitness, family, and light outdoor adventure.
The campaign, featuring celebrity owner Xu Jie’er, framed the Gaoshan not as a business shuttle but as a “zero-burden outdoor” companion that makes impromptu trips easier.
Product points highlighted in the campaign
- 1845 mm ultra-long shared seat rail across the lineup
- Flexible cabin layout for sports and family gear
- Space for items such as:
- yoga mats
- running shoes
- surfboards
- bicycles
- Hi4 Performance intelligent all-wheel drive standard across the lineup
- 0-100 km/h acceleration in the 5-second range, even in low-battery conditions
- 185 mm ground clearance
- Added four-wheel-drive driving mode for rougher surfaces
Why this matters in China’s EV market
This is a familiar but increasingly important trend in Chinese new-energy vehicles: body style boundaries are blurring. MPVs are no longer sold only as executive transport. They are being reimagined as premium multi-purpose family EVs and PHEVs that combine:
- lounge-like cabins
- flexible seating
- road-trip capability
- higher-performance electrified drivetrains
- lifestyle branding
For brands like Wey, the challenge is whether strong lifestyle storytelling can translate into durable sales traction in an increasingly crowded premium family-vehicle segment.
Why This Matters Globally
Taken together, these stories show how China’s EV industry is competing on four fronts at once:
-
Real-world intelligent driving
- Urban NOA is becoming the next battlefield after electrification.
- Public road performance is exposing gaps between marketing claims and actual system maturity.
-
AI-native automotive development
- Partnerships like Changan-Huawei show that Chinese automakers now see compute, large models, and digital architecture as core industrial assets.
-
European localization and compliance
- SAIC’s Spain plan and XPeng’s emissions-pool role both highlight how Chinese EV brands are becoming embedded in Europe’s industrial and regulatory systems.
-
Segment reinvention at home
- Vehicles like the Wey Gaoshan show that Chinese brands are still aggressively creating new lifestyle niches, not just fighting on price.
In short, China’s EV leaders are no longer only exporting cars. They are exporting software capability, regulatory leverage, supply-chain influence, and new product definitions.
What to Watch Next
Several threads from this week will be worth following closely:
- Whether SAIC’s Spain plant secures full approval and how quickly localization progresses
- How far Changan and Huawei take their AI-stack integration, especially around data, compute, and platform control
- Whether XPeng can keep building scale in Europe while turning partnerships into recurring revenue
- How autonomous-driving rankings evolve as more public tests expose differences between lidar-heavy, vision-based, and mixed-stack solutions
- Whether lifestyle-focused electrified MPVs like Wey Gaoshan can expand the premium family market
The bigger picture is that the Chinese EV race is becoming less about who can simply build an electric car, and more about who can combine intelligent software, global strategy, and product imagination into a sustainable competitive edge.
