German auto giants survive from China

Sales of German automakers in China are rapidly going down. It is increasingly difficult for them to compete with local automakers.

"Volkswagen suffered the most: sales in China fell by 36.6 percent to 424,300 vehicles in the second quarter of 2026. BMW and Mini recorded a decline of 30 percent. Mercedes-Benz also felt a clear weakening of demand in the Chinese market," writes the Polish Biznesalert.

They note that the reason is not so much the economic situation as the growing power of the Chinese automotive industry.

"Chinese manufacturers are introducing new models faster and updating software more often. In addition, they connect cars more effectively with the digital ecosystem. For many customers, this is becoming more important than the traditional prestige of a European brand," the publication writes.

Paul Bennett of Madox Square told Reuters that European players are rapidly trying to compensate for their losses at a very fast pace, but the competition is "going twice as fast."

"Three German brands were unable to compensate for losses in other markets, and their global sales also fell sharply. The weakening of the position of German companies in China accelerates the debate in the European Union on how to respond to the growing dominance of Chinese industry," Biznesalert continues, citing analysts' opinion that China's desire to become a world leader in technology and industry has huge implications for the European Union.