2023-09-03 17:37:14
From left to right: German premium brands Mercedes, BMW and Audi. Today, no German brand is in the top 10 sales of electrified vehicles in China. Adobe Stock
They make a third of their global sales there. But they are caught between Tesla and their Chinese rivals, on the electric offensive.
The German automobile, recognized worldwide for its “German quality” and its premium brands (Mercedes, BMW, Audi), will once once more shine at the IAA Mobility show, which opens on Tuesday in Munich. But, just like at the Mondial de l’auto in France last fall, Chinese brands are talking regarding them. The actors of the Middle Kingdom have indeed come in force to Bavaria: 41% of the exhibitors at the Munich show have their headquarters in China.
German manufacturers will find it difficult to hide their concern regarding China, which has become their first market: they now make a third of their turnover and profits there. However, the world’s largest automotive market (with 24.6 million cars sold in 2022 and probably 25.4 million in 2023, according to AlixPartners forecasts) is contracting as the Chinese economy slows down. A real blow, because this country has long offered them good margins. In the 2010s, these represented…
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