Chinese carmakers challenge German brands with premium electric vehicles

Geely, Nio and rivals debut upmarket models at Beijing show as German sales in China fall 25% since 2019.

Chinese carmakers unveiled premium electric vehicles at significantly lower prices than German rivals at the Beijing Auto Show, which opened on Friday with 181 new models and 71 concept cars on display.¹² Companies including Geely and Nio positioned the launches as a direct challenge to Porsche, Mercedes-Benz and BMW in China, the world's largest car market.¹²

The exhibition featured what Cui Dongshu, secretary-general of the China Passenger Car Association, described as a "flood" of large, premium "9-series" sport utility vehicles.¹² Bo Yu, Greater China country manager at Jato Dynamics, said the industry shift represented a move from price competition to what he termed a "value-for-money war".¹²

German carmakers have experienced substantial losses in China over the past six years. Sales by German manufacturers fell nearly 25% from 5.1-million vehicles in 2019 to 3.85-million vehicles, according to S&P Global Mobility data.¹² Mercedes-Benz, BMW, Porsche and Audi all reported sales declines in China during the first quarter of this year.¹²

Volkswagen, which attended its first Chinese car fair more than 40 years ago, has lost market position to domestic brands.³ The company fell from China's top carmaker position after 25 years to third place, overtaken by BYD in 2024 and Geely in 2025.³ Robert Cisek, Volkswagen brand's China chief executive, acknowledged the perception challenge, stating that "some younger customers perceive us as the brand for the parents".³

Chinese manufacturers are expected to expand competition into international markets following the domestic price war.¹²