(Yicai) July 18 -- Chinese automakers are turning to Hong Kong as a strategic launchpad for global expansion, as the special administrative region, despite selling fewer than 50,000 vehicles annually, emerges as a key platform for showcasing new models and building overseas momentum.

Once dominated by luxury car dealers, Hong Kong’s Gloucester Road now features showrooms from mainland brands including BYD, Zeekr, Xpeng Motors, Denza, and MG under SAIC Motor, Yicai learned.

As of May, over 10 Chinese auto brands had opened stores in Hong Kong, according to data from car information platform Autohome. BYD led with 12 dealerships, followed by MG, Xpeng, GAC Aion, Denza, Maxus, and Dongfeng, each operating three to six outlets.

Gloucester Road was the preferred location even for Leapmotor Technology, but the electric vehicle startup ultimately chose Taikoo Shing in Quarry Bay -- a residential area favored by middle-class families. Leapmotor's store there sits alongside Audi and Zeekr.

Nearly half of the mainland carmakers’ dealerships are clustered in Wan Chai and Kowloon Bay -- Hong Kong's historic commercial zones and emerging industrial-to-business hubs. Other popular locations include Tseung Kwan O and Sai Kung in the New Territories, valued for their green spaces and local character.

"Many investors come to Hong Kong for meetings and test drives," said Gong Linyao, director of Leapmotor's overseas business. He added that entering Hong Kong has strengthened the firm’s connection to global capital markets.

Mainland brands view Hong Kong as a high-profile financial center with free port advantages, Gong said. Despite modest local vehicle sales, the city serves as a vital display window for new models and a gateway to international markets.

Xu Jun, Leapmotor’s chief operating officer, called Hong Kong a crucial hub for right-hand-drive vehicles. Entering this market, he said, signals the firm’s global ambitions and provides valuable exposure to diverse cultural norms and environmental, social, and governance practices.

Beyond retail, Chinese automakers are also investing in research and development in the city. In April, Li Auto pledged HKD2 billion (USD278.6 million) to build a chip research center in Hong Kong, aiming to grow the team to 200 employees within three years. Battery maker Contemporary Amperex Technology also opened its sixth global R&D center in the SAR last year.

Editors: Tang Shihua, Emmi Laine