BBA Sales Slide in China Amid Push for Electrification and Smart Transformation Ahead of 2026

In 2025, Mercedes-Benz, BMW, and Audi (collectively known as BBA) all saw their sales in the Chinese market decline simultaneously, dropping by 19%, 12.5%, and 4.9% year-over-year, respectively. Each brand fell below the 700,000-unit mark, ending five consecutive years of stable high-level performance. The primary reason is that China’s new energy vehicle (NEV) penetration rate has approached 60%, with domestic brands capturing a 65% market share, causing retail sales of internal combustion engine (ICE) vehicles to plummet by 30%. Additionally, BBA has significantly lagged in intelligent technologies: while nearly 70% of newly launched vehicles in China now feature Level 2 advanced driver-assistance systems (ADAS), BBA models have shown weak presence in this area. To address these challenges, Audi plans to launch new models such as the A6L e-tron and E7X; Mercedes-Benz intends to introduce 15 new vehicles and enhance its AI cockpit and navigation-assist features through over-the-air (OTA) upgrades via its MB.OS system; and BMW will unveil its next-generation iX3 in the second half of 2026, equipped with sixth-generation electric drive technology, an 800V platform, and localized AI capabilities. Whether these efforts can reverse their declining fortunes remains to be seen by the market.