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China's Luxury Car Demand Plummets as Local Brands Rise

12/14/2025

50 11 Full Breakdown

Summary

Story summary

The demand for foreign luxury cars in China is declining as consumers shift to affordable domestic brands often sold at steep discounts.
Premium car sales fell from 15% of total sales in 2023 to 13% in early 2025.
BYD Co. Ltd., a Chinese automaker, gains market share as its vehicles become more competitive and affordable.
Mercedes-Benz and Porsche posted declines, with Mercedes-Benz down 27% in the July–September quarter.

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Story summary

The demand for foreign luxury cars in China is declining as consumers shift to affordable domestic brands often sold at steep discounts.
Premium car sales fell from 15% of total sales in 2023 to 13% in early 2025.
BYD Co. Ltd., a Chinese automaker, gains market share as its vehicles become more competitive and affordable.
Mercedes-Benz and Porsche posted declines, with Mercedes-Benz down 27% in the July–September quarter.