German Media: German Automakers Have Completely Lost the Competition in China's Electric Vehicle Market

According to *Handelsblatt*, German automakers have completely lost the competition in China's electric vehicle market.

As the Beijing International Auto Show opened, German automakers achieved their lowest-ever market share in the world's largest electric vehicle market. *Handelsblatt* reported:

"Data provided by automotive industry data service provider Marklines to *Handelsblatt* shows that in the first quarter of 2026, the combined market share of German carmakers—Volkswagen, Audi, BMW, Mercedes-Benz, and Porsche—had plummeted to a record low of just 1.6%. The total new vehicle registrations for these five German automakers amounted to only 19,200 units, a drop of over 55% compared to the same period last year."

In the first quarter, overall Chinese electric vehicle sales declined significantly. After the tax incentive policy for purchasing EVs expired, new EV registrations dropped by approximately 20%, falling to 1.2 million units. Entry-level electric vehicles were hit the hardest; previously, these models had enjoyed tax rebates of nearly one-third of their price. BYD, the previous market leader, suffered the steepest decline: its sales dropped by 40%, forcing it to relinquish its title as China’s top-selling brand back to Volkswagen.

However, for Volkswagen, this "sales champion" title is largely misleading, as most of its current sales still come from the rapidly shrinking internal combustion engine vehicle market. To truly regain strength in China, Volkswagen must deliver strong performance in the electric vehicle segment. Yet in the first quarter of this year, Volkswagen’s EV sales fell by 72%, BMW dropped nearly 65%, and Mercedes-Benz declined by about 14%. Industry experts generally agree that it is hard to envision German automakers reversing this downward trend in the short term. Horst Schneider, an automotive analyst at Bank of America, stated: 'The possibility of a recovery in German automakers’ sales is almost negligible.' He believes Chinese automakers continue to improve and will further expand their market share. Andreas Herrmann, an automotive expert at the University of St. Gallen, went even further, asserting that the current sales decline is not merely a cyclical market fluctuation but rather an inevitable outcome of fierce competition."

Source: DW

Original article: toutiao.com/article/1863373152455688/

Disclaimer: This article reflects the personal views of the author