China Luxury-Car Slump Strains European Automakers
Luxury-car slump in China strains European marques
Sales of high-end imported cars in China have cooled as buyers increasingly favor value-packed domestic models that bundle advanced infotainment, driver aids and aggressive discounts, squeezing European brands that once relied on strong demand there.
Why Chinese buyers are shifting
Local manufacturers now match or beat foreign rivals on technology and price, especially in electric and hybrid segments, while dealers offer steep incentives and tailored features such as premium screens and comfort options that appeal to younger buyers; slowing economic sentiment has amplified sensitivity to cost and pushed some shoppers toward mid-priced domestic SUVs and sedans.
Implications for European automakers
European makers face margin pressure, inventory buildup and a need to accelerate localization, electrification and software differentiation to regain traction, while strategic pricing, China-specific models and partnerships may determine who preserves market share as competition intensifies.
