German Luxury Car Sales Plummet in China Q1 2026 as Domestic EV Brands Surge into Premium Segment

In the first quarter of 2026, BMW, Mercedes-Benz, and Audi all experienced significant declines in sales in the Chinese market. Combined, the three brands sold approximately 69,800 fewer vehicles year-over-year, averaging a daily drop of over 700 units. Specifically, BMW delivered 144,000 vehicles in China, down 10% year-over-year, while its global deliveries of fully electric vehicles fell by 20.1%. Audi delivered 127,100 vehicles in China, a 12% year-over-year decline. Mercedes-Benz delivered 111,600 vehicles in China, marking a sharp 27% year-over-year drop. To counter falling sales, these brands have successively adopted price-cutting strategies. BMW adjusted the official recommended prices for 31 models, with discounts reaching over 20%—the i7 model alone saw an official price reduction of RMB 301,000. Mercedes-Benz lowered prices on select models, bringing the terminal ex-showroom price of the E-Class down to around RMB 308,000. Audi launched limited-time purchase incentives to ease sales pressure. Meanwhile, China’s domestic premium new energy vehicle (NEV) brands saw rapid sales growth during the same period. NIO delivered 83,500 vehicles in the first quarter, up 98.3% year-over-year; Li Auto delivered 95,100 units, an increase of approximately 60%; and Aito delivered 70,200 vehicles, surging 55.64% year-over-year. These brands are steadily expanding their market share in the RMB 300,000–600,000 price segment, intensifying competition with traditional luxury automakers.