Luxury Brands in China
Chinese Buyers Are Turning Away from German Luxury Cars

From Henrik Bork | Translated by AI 7 min Reading Time

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German luxury brands are struggling in China: Mercedes sales are down 30 percent, and BMW and Audi are also seeing declines. The reason: They are lagging far behind in the electric vehicle market.

Developed in Germany: In 2017, the then-new S-Class celebrated its world premiere in Shanghai.(Image: Mercedes-Benz AG)
Developed in Germany: In 2017, the then-new S-Class celebrated its world premiere in Shanghai.
(Image: Mercedes-Benz AG)

German luxury brands are losing ground in China. Cars “Made in Germany” are significantly less in demand there than they used to be. Amid all the other bad news about the German auto industry, this fact is almost getting lost. Mercedes-Benz sold 30 percent fewer cars in China in the third quarter of 2026 than in the same period last year, the company announced on October 28. Conditions in China deteriorated “more sharply than we had expected for this year,” said Mercedes CEO Ola Källenius, according to Bloomberg.