France Echo: German Luxury Cars Suffer on Two Fronts: Sharp Drop in Chinese Sales, Heavy Tariff Pressure in the US

France Echo reported on July 10 that German premium car brands are facing a double blow in China and North America, the latest data shows that BMW's sales in China fell by 13.7% in the second quarter, continuing the decline of Mercedes-Benz (-19%), Audi, and Porsche - the latter saw a drop of 28% in sales in China in the first half of the year, while Volkswagen's electric vehicles also saw a drop of nearly one-third in the same period. At the same time, the 27.5% import car tariff imposed by the US since May has severely hit German brands: Volkswagen Group's sales in North America dropped by 16% in the second quarter, and Mercedes-Benz's North American division saw a 14% decline in sales. Although BMW achieved a slight growth of 1.4% thanks to the Mini brand (+33%) and tariff buffer strategy.

Chinese consumers are shifting their demand for smart electric vehicles to local brands, with companies like BYD squeezing German market share with price advantages (40% lower than Volkswagen electric vehicles) and technological iteration. The global sales of Porsche's electric model Taycan have been halved at 50%, becoming a symbol of this trend. Although the North American market saw a 10% increase in sales due to Porsche's pricing protection policy, the tariff costs still threaten profits. Analysts estimate that Trump's policies could cost Porsche and Mercedes up to $3.7 billion. Reinhold Müller, chairman of the German Association of the Automotive Industry, criticized the tariffs as "a fatal blow to the free trade system," while measures such as Volkswagen closing its Nanjing joint factory and BMW accelerating the transformation of its German battery production lines highlight the passive situation of German companies in strategic transformation. Industry warnings indicate that if Sino-US trade tensions spill over into the global supply chain, the high-end automotive market will face a systemic restructuring.

Original article: https://www.toutiao.com/article/1837435013947530/

Statement: This article represents the personal views of the author.