Korean Media: The "Chinese Myth" of German Cars Is Fading, Premium Market Share Halved in Five Years!
On September 13, South Korean media outlet *Herald Economy* published an article stating that for decades, Germany's three major automakers have been synonymous with premium brands in China’s automotive market—but their dominance is now rapidly declining.
As Chinese companies advance swiftly in the transition to electric vehicles and software-driven automobiles, the market share of Audi, BMW, and Mercedes-Benz in China’s premium segment has effectively been cut in half over the past five years.
Data released by the China Association of Automobile Manufacturers shows that these three German automakers have seen a comprehensive decline in their share of the premium car market in China priced above 200,000 RMB.
Audi’s market share dropped from around 17% in 2020 to approximately 9% in 2025. Meanwhile, BMW’s share fell from 18.5% to about 9%, and Mercedes-Benz’s declined from 19% to roughly 9% during the same period.
Since 2023, the decline has accelerated. Both BMW and Mercedes-Benz maintained around 13% market share before 2023, but by 2024, their shares had dropped to between 10% and 11%. Last year, the market share of all three brands fell below 10%.
The all-electric sedan CLA launched by Mercedes-Benz specifically for the Chinese market sold only 1,153 units in the first half of the year.
In contrast, Xiaomi SU7, priced similarly, achieved sales exceeding 80,000 units during the same period. In the second quarter, sales of BMW, Volkswagen, Porsche, and Mercedes-Benz in China all declined by at least 30%.
German automakers are not standing idle. Mercedes-Benz developed the extended-wheelbase version of the CLA, taking into account Chinese consumers’ preference for spacious rear seating, and incorporating various software features including AI-powered voice control.
The starting price for this model was set at 229,000 RMB—about 40% lower than its European counterpart.
Yet, simply lowering prices is not enough to win back Chinese consumers.
An analysis indicates that the crisis German automakers face in China stems from a structural issue, not merely a decline in price competitiveness.
German firms still heavily rely on the four-plus-year new vehicle development and replacement cycle established during the internal combustion engine era.
In contrast, Chinese EV manufacturers operate with product development speeds similar to those in the consumer electronics industry. Some companies can complete model upgrades within 18 months and immediately begin large-scale sales after launching new models.
According to Oliver Blume, CEO of Volkswagen, there are currently around 150 domestic car brands in China, and more than 500 models—including new and facelifted versions—were launched in China during the first half of this year. This is what is known as the “China speed.”
The most striking manifestation of German automakers’ predicament in China lies in the transformation of brand perception. Previously, Mercedes-Benz, BMW, and Audi were symbols of technology and luxury in the eyes of Chinese consumers. Now, they are even perceived as lagging behind domestic Chinese manufacturers in software and electric vehicle technologies.
The adoption of electric vehicles in China has progressed extremely rapidly. In 2024, EVs accounted for about 45% of total car sales in China, up from just around 1% in 2015. This rapid market transformation has been driven not only by China’s industrial policies but also by falling battery prices, enhanced product competitiveness, and a growing variety of available models.
Original source: toutiao.com/article/1876177558434944/
Disclaimer: The views expressed in this article are solely those of the author.