Core Insights - The absence of foreign luxury car brands at major auto shows in China signals a significant shift in the automotive market, particularly as domestic electric vehicles (EVs) gain popularity [2][4][6] - Sales and profits for foreign luxury brands have plummeted, with notable declines in retail volumes and market share [2][3][5] Group 1: Market Trends - In July 2025, luxury car retail volume dropped to 170,000 units, a year-on-year decrease of 20%, with market share shrinking to 9.3% [2] - Specific brands faced severe declines: Porsche's sales fell by 28%, Maserati's by 58%, and the BBA brands (Benz, BMW, Audi) saw declines of 37.2%, 26.6%, and 21.7% respectively [2] Group 2: Cost and Profitability - Participation in auto shows incurs high costs, with expenses reaching millions, leading dealers to reconsider their marketing strategies amid declining sales and profits [3] - The luxury car market's profit margins have diminished significantly, prompting brands to engage in price wars to maintain market presence [4][5] Group 3: Consumer Behavior - The rise of affordable luxury vehicles has altered consumer perceptions, with many now viewing luxury cars as more accessible, leading to a shift in purchasing behavior [4] - Consumers are increasingly favoring second-hand vehicles over new luxury cars due to concerns over depreciation and value retention [5][6] Group 4: Competitive Landscape - Foreign luxury brands are struggling to compete with domestic EVs, which offer better value and faster product updates [6][7] - The market dynamics are shifting, with consumers becoming more rational and demanding better product experiences, which foreign brands have been slow to adapt to [6][7] Group 5: Future Outlook - The absence of luxury brands from auto shows does not indicate a complete withdrawal from the Chinese market but rather a necessary adaptation to new market conditions [7] - To survive, luxury brands must focus on enhancing product-market fit and accelerating technological advancements rather than engaging in price competition [7]