SHANGHAI—Long known for being cheap but ugly, Chinese cars are starting to turn heads as domestic manufacturers poach star designers from foreign rivals.

Lured by top-dollar salaries—and the chance to put their stamp on an entire line of vehicles—designers from Rolls-Royce, Audi, Volvo, BMW and other prestigious marques have been signing on to make Chinese cars contenders in the looks department.

For decades, the main focus for China’s auto makers was the exploding market at home as Chinese families acquired cars at a breakneck pace. If they exported at all it was to emerging markets, where the premium was on cheap wheels. Competing on a global scale has become more pressing as China’s own auto market, while still the world’s largest, plateaus after years of dependable growth. Chinese passenger-car sales declined 3% in the first 11 months of 2018 year-over-year.

Intensifying competition at home has led to better cars. Recent quality surveys conducted by J.D. Power suggest the gap in manufacturing standards between Chinese and foreign cars has all but closed. Now, they’re tackling aesthetics.

David Hilton could hardly be more steeped in American car culture: His great-great-grandfather Ransom E. Olds founded Oldsmobile in Michigan in the late 19th century. But the future of vehicle design is in Shanghai, said Mr. Hilton, who joined GAC Motor as head of design strategy and opened a design studio in a former Shanghai factory in November.