Major German carmakers hit by steep China sales plunge as competition heats up

The article reports that Volkswagen, Mercedes-Benz, BMW and Porsche all recorded steep declines in China during the April–June quarter, with year-over-year China sales falling 30%–41% based on company data released in recent days. For the first half of the year, each had a China drop of more than 20% year over year, contributing to weaker overall performance.

It links the downturn to a combination of slowing domestic demand in China, worsening consumer sentiment tied to the property-sector slump, and a long-running price war. At the same time, competition from Chinese automakers is increasing—both inside China and in other markets—making it harder for “legacy” German brands to hold share.

Volkswagen is cited with deliveries in China down 36.6% in the quarter to 424,300 vehicles, dragging its global sales down 8.6% even as deliveries rose in Europe and the Americas. The company says it will cut its China model lineup by up to half after the sales declines. Porsche describes China’s environment as “challenging,” while Mercedes says China faces a significantly weaker market and macroeconomic environment.

Industry data is included: China’s passenger car sales at home fell 24% in the first half of the year to nearly 8.3 million. The article also quotes analysts saying foreign automakers will need to fight harder for market share and that German firms—stronger in internal-combustion vehicles than in EVs—are bearing much of the brunt of the shift toward Chinese brands.