BUSINESS

Charts of the Day: German Luxury Carmakers’ China Sales Slump Accelerates

Published: Aug. 4, 2025 6:52 p.m. GMT+8

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Germany’s luxury automakers saw their sales continue to decline in China during the first half of 2025, as they grapple with fierce competition from local rivals and tepid consumer demand in the world’s largest auto market.

Mercedes-Benz Group AG sold just over 293,000 cars in China, its largest single market, a 14% year-on-year drop, the company disclosed in its earnings report last week. “The market situation in the premium and luxury segment in China remained tense,” the carmaker said, noting that ongoing price competition, particularly from domestic manufacturers, is expected to keep piling pressure on foreign firms.

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Mercedes-Benz, BMW, and Audi saw China sales fall 14%, 15.5%, and 10.2% year-on-year respectively in H1 2025, with declines accelerating versus last year.
Chinese brands captured 68.5% of the domestic passenger car market, up 6.6 percentage points; German market share fell to 13.1%.
German automakers are accelerating EV launches and partnerships with local technology firms to regain competitiveness.

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Who’s Who

Mercedes-Benz Group AG: Mercedes-Benz Group AG experienced a 14% year-on-year sales drop in China during the first half of 2025, selling just over 293,000 cars. The company cited intense price competition from domestic manufacturers and a "tense" market in the premium and luxury segments. In response, Mercedes-Benz plans to launch its new all-electric CLA coupe in China later this year, featuring a locally developed assisted driving system.

BMW AG: In the first half of 2025, BMW AG experienced a 15.5% year-on-year drop in sales in China, selling approximately 318,000 vehicles. This decline is attributed to intense competition from local rivals and weak consumer demand. BMW is responding by accelerating investment in new models, including a partnership with Momenta to develop advanced driver-assistance systems for future China-built models launching in 2026.

Audi AG: Audi AG experienced a 10.2% decline in China sales, delivering 287,600 vehicles in the first half of 2025. This downturn is attributed to intense competition from local rivals and weak consumer demand, reflecting a broader struggle for German luxury automakers in the Chinese market. In response, Audi plans to boost its product lineup in China, including new EV launches like the Audi E5 Sportback and the Audi Q6L e-tron, the latter incorporating Huawei's Qiankun intelligent driving system.

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is mentioned in the context of the automotive industry. Specifically, their Qiankun intelligent driving system will be integrated into the Audi Q6L e-tron. This collaboration highlights Huawei's role in providing advanced technology for electric vehicles in the Chinese market.

Momenta: Momenta is an autonomous driving startup that has partnered with BMW. They will collaborate to co-develop advanced driver-assistance systems for BMW's next-generation China-built models, which are set to launch in 2026.

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What Happened When

First half of 2025：: Mercedes-Benz sold just over 293,000 cars in China, a 14% year-on-year drop.

First half of 2025：: BMW's sales in China fell 15.5% year-on-year to approximately 318,000 vehicles.

First half of 2025：: Audi's China sales declined 10.2% year-on-year, delivering 287,600 vehicles.

First half of 2025：: Total passenger car sales in China reached 13.53 million vehicles, up 13% year-on-year (CAAM).

First half of 2025：: Chinese brands captured 68.5% of the domestic passenger car market, up 6.6 percentage points from 2024; German automakers' share fell 2.9 points to 13.1%.