虎嗅APP·2025-10-11 09:53Core Viewpoint - The German luxury car trio, BMW, Mercedes-Benz, and Audi (BBA), is losing market share in China due to the rapid rise of domestic electric vehicle brands, particularly in the entry-level and mid-range luxury segments [4][8]. Market Dynamics - The entry-level luxury sedan market, represented by models like the BMW 3 Series, Audi A4L, and Mercedes-Benz C-Class, has seen significant price reductions, with the Mercedes-Benz C260L's price dropping to around 25 million yuan after subsidies [4]. - Despite price cuts, sales have not improved significantly, with Mercedes-Benz C-Class and Audi A4L sales dropping by 16% and 27% respectively in the first half of 2025, while BMW 3 Series saw a slight increase [4][5]. - The market share of new energy vehicles in the 200,000 to 300,000 yuan price range has increased from 60% to 63.3% year-on-year, further squeezing traditional luxury entry-level cars [4]. Financial Impact - BMW reported a 24.6% decline in deliveries for its popular models X3/X4 and a staggering 70.8% drop for i3/i4 in the first half of the year [5]. - In Q3 2023, BMW's sales in China were 147,100 units, down 0.4% year-on-year, while Mercedes-Benz's sales fell by 27% to 125,100 units [5]. - The financial performance of BBA has been adversely affected, with Mercedes-Benz's net profit plunging 55.8%, Audi's down 37.5%, and BMW's decreasing by 29% in the first half of 2025 [6]. Competitive Landscape - The mid-size luxury sedan market is also experiencing price competition, with the BMW 5 Series seeing a price drop of 40% from 439,900 yuan to approximately 260,000 yuan [6]. - Domestic electric vehicle brands are now targeting the ultra-luxury segment, with models like BYD's Yangwang U8 and NIO's ET9 directly competing with BBA's high-end offerings [6][7]. - NIO's ET9 surpassed BMW 7 Series and Audi A8L in sales in its first month, while Huawei's Zun Jie S800 received over 14,000 pre-orders within 109 days, indicating a shift in consumer preferences [7][11]. Historical Context - The Chinese luxury car market has undergone a significant transformation from 2010 to 2020, with market size growing from approximately 300,000 units to 2.2 million units, while BBA's market share dropped from 94.03% in 2012 to 63% in 2020 [8][9]. - Domestic brands have increasingly penetrated the luxury market, with Li Auto capturing nearly 10% market share and NIO holding a 40% share in the pure electric vehicle segment above 300,000 yuan by 2024 [9][10]. Challenges for Domestic Brands - While domestic brands have made strides in the ultra-luxury market, they face challenges in brand recognition and consumer trust compared to established players like BBA [16][18]. - The international market presence of these brands remains limited, and their success in the ultra-luxury segment will depend on their ability to enhance brand perception globally [18].