High-End Car Sales Plummet in China Amid Economic Slowdown

High-end car sales in China are plummeting as demand for foreign luxury vehicles wanes. Customers are increasingly opting for more affordable Chinese brands, which are often sold at significant discounts.

This trend poses challenges for European automakers like Porsche, Aston Martin, Mercedes-Benz, and BMW, which have historically dominated the luxury market in China. According to Paul Gong from UBS, many wealthy consumers are becoming reluctant to display their wealth publicly, compounded by a prolonged property downturn that has dampened big purchase appetites.

Chinese manufacturers, particularly electric vehicle maker BYD, are rolling out innovative and competitively priced models, capturing a larger market share. The market for premium cars, typically priced above 300,000 yuan, saw its share drop from 15% in 2023 to about 13% in the first nine months of 2025, according to S&P Global Ratings.

Notably, Mercedes-Benz reported a 27% drop in unit sales in China during the July-September quarter, while BMW's sales fell by 11.2%. The economic slowdown has further impacted used luxury car markets, where prices are declining significantly.

One used car salesperson noted that luxury vehicles are now selling for much less than their purchase prices, driven by a shift in consumer behavior amid economic uncertainty.