(NADS) - In a surprising development for the global auto market, German luxury brands such as BMW, Mercedes-Benz, Volkswagen, and Porsche are facing a decline in consumer confidence in China – the world’s largest auto market. Models once highly regarded for their quality and luxury are now losing their appeal as Chinese consumers turn to domestic brands.
Once the “stars” of the Chinese market, German cars are now facing fierce competition from domestic brands such as BYD, Nio, and Xpeng. Especially in the context of electric car technology becoming increasingly prioritized, Chinese car brands have not only caught up with but even surpassed foreign competitors.
Sales figures for the third quarter of 2024 underscored the shift: BMW sales fell 30%, Porsche fell 19%, Volkswagen fell 15%, and Mercedes-Benz fell 13%. This is not a sign that Chinese people are no longer buying cars, but rather evidence of a strong shift to domestic brands with advanced technology and more attractive prices.
One of the key factors that determines the success of domestic brands is the ability to integrate modern technology at affordable prices. Electric vehicles from BYD, Nio, and Xpeng not only possess advanced features such as autonomous driving systems, but also have superior operating ranges and charging speeds compared to German models in the same segment. This helps domestic automakers grasp consumer tastes more quickly and effectively.
Electric vehicles, in particular, are a segment where German automakers are struggling. Despite introducing a range of electric models in China, German brands only hold around 10% of the market share in this sector. Meanwhile, BYD has risen to the top thanks to constant innovation and competitive pricing.
With their market share falling from 25% before the pandemic to 15% today, German automakers are at a crossroads in China. Heavy investment in Chinese manufacturing infrastructure means they cannot easily leave the market. To adapt, German brands have begun to increase cooperation with Chinese technology companies to improve the quality of electric vehicles and better meet the needs of domestic consumers.
This shift is not just a passing trend, but also raises big questions about the future of foreign car brands in China. As consumers increasingly prioritize technology and price, German carmakers will need to truly innovate to avoid being left behind.
Source: https://nhiepanhdoisong.vn/nguoi-tieu-dung-trung-quoc-dan-bo-xe-duc-chuyen-sang-o-to-noi-dia-xu-huong-moi-hay-dau-cham-het-cho-cac-thuong-hieu-ngoai-15415.html
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