AUTO

German luxury cars lose their foothold because of electrochemical technology in China

Other electric car brands are threatening the market share of Mercedes, BMW and Audi in China.

Historically, German luxury car brands (Mercedes, BMW and Audi) have long been regarded as hard-to-reach luxury products in China. These luxury car companies hold 60% of the huge car market, even larger than the Chinese market, and their success overcomes the challenge. But this is likely to change soon.

Currently, sales of the three car manufacturers are down in China, something that has not happened in a long time. Part of the reason is because of Covid-19, but the effects of this pandemic are different for everyone.

Although businesses are normal, the trio of German carmakers have lost market share to electric car brands. “The bottom line: whenever Tesla opens stores in a new city, Germans lose their stakes,” said Alexander Potter, an analyst recently.

That applies not only to Tesla, but other electrical brands such as Nio and Li Auto have also become forces to watch out for for German automakers.

2020 is an important year for electric vehicles, not only in China but also in Norway. Electric cars dominate the Norwegian market with 54% of the cars with no engines, and hybrids, plug-in hybrids and plugless hybrids have 29% of the market.

While Audi’s e-tron electric vehicle occupies the top spot in Norway car sales, the brand is not performing well compared to competitors from Germany in overall electric vehicle sales. BMW led the way when it sold 193,000 electric and hybrid vehicles, followed by Mercedes with 160,000 sales. Meanwhile, Audi sold only 47,000 cars.

However, all three automakers are becoming more electrified, with the announcement of EV models every day. BMW is planning an electric SUV called the iX, while Mercedes is planning an EQA. Audi will enter the sports car market with the RS e-tron GT.

Whether these will help them regain the Chinese market or not wait for the future, but they are very interested in maintaining their position on the sales rankings. China is the world’s largest auto market, and is a key factor in all carmakers’ global business.

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