Mercedes-Benz and BMW Face Declining Sales in China as Domestic EV Makers Accelerate Expansion

Mercedes-Benz and BMW continue to see declining sales in the Chinese market, delivering 551,900 and 625,500 vehicles respectively in 2025—a year-over-year decline of 19% and 12.5%. This marks the second consecutive year that both brands have experienced double-digit percentage drops. Preliminary forecasts suggest that in 2026, domestic sales of their locally produced models will each fall below 500,000 units, reverting to levels seen roughly a decade ago. Meanwhile, domestic new energy vehicle (NEV) makers are surging ahead: Leapmotor aims for 1 million units in 2026 (+68%), Xiaomi Auto targets 550,000 units (+34%), and Harmony Intelligent Mobility has set an ambitious goal of 1–1.3 million units, projecting a staggering growth rate of 120%. As traditional luxury brands retreat, homegrown NEV brands are rising powerfully, reshaping the market landscape.