BMW, Mercedes face tougher China competition

Germany’s auto industry is coming under growing pressure as economic conditions in China weaken and competition from local manufacturers intensifies, according to industry officials.

Speaking at the Beijing auto show, Hildegard Müller said the Chinese market has become the most competitive in the world, forcing global automakers to rethink long-held assumptions about growth and dominance, News.Az reports, citing Reuters.

She noted that German manufacturers such as BMW and Mercedes-Benz Group are still launching new models and technologies in China, but can no longer expect to maintain their historically high market share as a benchmark for success.

The shift comes as China’s economy slows, with weaker consumer spending and rising unemployment affecting demand—particularly in the premium car segment, where German brands have traditionally been strongest.

At the same time, domestic competitors such as Geely and NIO are gaining ground, offering advanced electric vehicles at significantly lower prices and attracting more local buyers.

Müller said Chinese automakers are expected to play an even larger role going forward, supported in part by consumer preference trends that increasingly favor domestic brands.

While China remains one of the few major global markets still offering growth potential compared with Europe and the United States, the combination of economic slowdown and aggressive competition is reshaping the landscape for foreign automakers.

The evolving market dynamics highlight a broader shift in the global auto industry, where pricing pressure, electric vehicle innovation, and national competition are redefining long-established leaders.

News.Az 

By Aysel Mammadzada