The top German premium car manufacturers - the great trio Audi, BMW and Mercedes - have suffered serious blows over the past year, both at home in Germany and in the world's largest car market - China. According to Reuters, all three brands have shown a decline in sales volume, with Audi the most visible.
BMW reports a 2.3% drop in total car sales, which is almost similar to the 3% drop at Mercedes-Benz. However, Audi's overall decline is significant - 12%.
In China and Germany, however, BMW recorded a decline of 13.4% and only 5.3%, respectively, while Mercedes sales decreased by 7% and 9%, respectively. Audi sales fell 11% in China and 21% in Germany.
China's domestic market, the world's largest, maintained steady growth in 2024, but foreign automakers with less competitive electric vehicles lost ground to Chinese rivals.
Chinese EV-only automakers have gained the most in China as a price war and subsidized swaps for greener vehicles have boosted demand for their products.
In Germany, car demand remains well below pre-pandemic levels, with about 2.8 million vehicles sold last year - about 1% less than in 2023 and a quarter below sales in 2019.
Sales of electric vehicles in Germany have fallen by a quarter compared to 2023, according to data from the German automobile authority, while sales of cars with ICEs are up 12%.
BMW’s global sales of electric cars alone bucked the trend, rising 13.5% to around 430,000, while sales of Mercedes electrics fell 23%.
One bright spot for Mercedes, however, was a 34% jump in top-of-the-range car sales in the fourth quarter, supported by solid demand in the US, a sign that dealers may be stocking up before Donald Trump imposes higher tariffs on European-made cars.