NINGBO, China—A new auto brand, Lynk & Co., hit the market in China on Tuesday, part of an effort by domestic car makers to broaden their appeal by offering upscale vehicles capable of matching foreign rivals.

Targeting young buyers by offering a next-generation vehicle with free wireless connectivity and car-sharing services, Lynk’s rollout reflects the growing ambitions of Chinese auto makers aiming to move beyond the production of cheap cars for a domestic audience.

After...