High-end foreign car sales are declining in China as consumers opt for more affordable Chinese brand models with advanced electronics. European carmakers like Porsche, Aston Martin, Mercedes-Benz, and BMW face weakening demand. Premium car market share, typically vehicles priced above 300,000 RMB ($42,400), fell from 15% in 2023 to 13% in the first nine months of 2025, according to S&P Global Ratings. Chinese brands now hold nearly 70% of passenger car sales in the first 11 months of this year. BYD has overtaken Volkswagen as China’s biggest car seller, benefiting from aggressive pricing and a government trade-in subsidy of 20,000 RMB ($2,830) for electric and plug-in hybrid vehicles.