BMW and Mercedes reported Q3 sales declines, citing sluggish demand and rising competition in China, the world’s largest auto market. BMW’s sales dropped 13% YoY, with China sales falling by a third, while Mercedes saw a 3% YoY decline, including a 13% drop in China. Mercedes’ high-end segment, particularly the S-Class, was hit by reduced consumer spending in China. Both automakers face challenges from local EV competitors offering cheaper models and a weak Chinese economy. Globally, Mercedes’ battery electric vehicle sales fell 31%, while BMW’s rose 10%. Amid trade tensions, the EU imposed tariffs on Chinese EVs, which has raised concerns among German automakers.