EV revolution leaves German automakers behind

What happened Volkswagen’s Q3 report reveals a stark challenge: the automaker delivered just 711,500 units in China, down 15% YoY. Globally, the German marque’s deliveries for the quarter reached 2.176 million units, a decline of 7.1%. Chinese competitors are proving formidable, with domestic brands like BYD and Geely posting record-breaking sales. This intensifying competition has significantly affected foreign carmakers, leading Volkswagen to downgrade its global delivery guidance for the second time this year. It now forecasts around 9 million units for 2024. BMW and Mercedes have similarly reported sales declines in China, signaling growing headwinds for foreign automakers in the world’s largest auto market. The Jing Take China’s rapidly evolving electric vehicle EV market is reshaping the global landscape for legacy automakers, and the third quarter of 2024 is a critical inflection point. Volkswagen, BMW, and Mercedes, once dominant players, are now feeling the pressure as Chinese EV manufacturers take the lead. BYD, for instance, achieved 28.6% YoY sales growth in September, with 419,426 units sold, setting a new record for the brand. Meanwhile, Geely and Chery are expanding strongly. The entry of competitively priced and increasingly sophisticated domestic EVs is forcing foreign brands to reevaluate their strategies. The competition for market share is heating up. The shift from traditional combustion engines to electric vehicles has empowered Chinese brands to dictate pricing, leaving legacy automakers scrambling to keep up. To survive in this new era, foreign carmakers must either match the aggressive pricing strategies of their Chinese counterparts, or differentiate themselves through technology and brand loyalty. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

EV revolution leaves German automakers behind

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Published October 15, 2024

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EV revolution leaves German automakers behind