Chinese drivers are buying affordable electric vehicles loaded with new technology, a trend that is redefining high-end vehicles and hurting German automakers.

After decades of dominating China’s market for high-performance cars with precision engineering, German automakers are losing out to Chinese rivals that have shifted the definition of a high-end car to one that is electric, smart and affordable.

Many new Chinese vehicles resemble their German rivals, like the wildly popular Xiaomi SU7, which mimics Porsche’s Taycan. The SU7 rivals the Taycan in power and braking, but it also includes integrated artificial intelligence that can, for instance, help with parking and greet drivers with their favorite song. The cherry on top: It sells for roughly half the price of a Taycan.

As a result, the German automakers that for decades commanded China’s premium car market are now seeing their sales dwindle, while Xiaomi — a leading Chinese smartphone manufacturer — last year sold

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