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BMW, VW, and Mercedes falter in China
Chinese carmakers are beating them on technology.
Kieran Ryan
October 17, 2024
In partnership with
TODAY’S STORY
There are growing concerns regarding the prospects of BMW, VW, and Mercedes in China’s EV market.
The latest warning sign came last week when all three German automakers reported declining third-quarter sales in China. It wasn’t a small drop either; BMW, VW, and Mercedes plunged 30%, 15%, and 13%, respectively.
Local Chinese brands are beating them in terms of technology. Chinese EVs increasingly favor tech refinement, from driver-assistance functions to in-car entertainment, over traditional selling points like horsepower and handling. They also develop cars 30% faster than legacy automakers, allowing them to introduce new technology to the market, which then improves their chances of gaining market share.
While the outlook for German automakers in the short term is bleak, they really have no choice but to compete since China’s auto market provides the largest opportunity to these manufacturers in terms of potential unit volumes and profit.
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Kieran & Justin Ryan
