Chinese Premium Brands Gain Market Share as German Luxury Car Sales Slide in China

On the first day of the 2025 Beijing Auto Show, multiple Chinese-brand premium SUVs made their debut, featuring advanced technologies previously found mostly in million-yuan-class vehicles—such as steer-by-wire systems, 900V high-voltage architectures, and VLA large-model-based intelligent driving capabilities. The market share of domestic brands in China’s premium vehicle segment priced above RMB 400,000 has surged from 1.8% in 2021 to 40.9%. Meanwhile, BMW, Mercedes-Benz, and Audi reported respective sales volumes in China of 625,500, 575,000, and 617,500 units—a year-over-year decline of 12.5%, 19%, and 5%. Their combined sales totaled 1.818 million units, falling back to 2017 levels. Notably, the average transaction price of certain Chinese premium new energy vehicles has already reached RMB 390,000, surpassing the average transaction prices of BMW and Audi during the same period. Technologically, Chinese-brand models now commonly feature multiple LiDAR units and self-developed chips, with CLTC-rated ranges reaching up to 950 kilometers. Some models can recharge from 10% to 97% in just nine minutes. Consumer priorities are shifting away from brand prestige toward practical user experience factors, such as advanced intelligent driving capabilities, third-row seating comfort, and charging efficiency. In response to these market shifts, German automakers are accelerating their intelligent transformation: BMW has partnered with Momenta to launch an all-scenario navigation pilot assist system; Audi has integrated Huawei’s Qiankun intelligent driving system into its combustion-engine A6L; and the new Mercedes-Benz S-Class is increasingly aligning with China-localized AI technologies. By 2026, new energy vehicles priced above RMB 400,000 are projected to exceed 50% penetration in China’s premium automotive market.