Made in Germany cars have lost the most ground of all in China. At the Beijing motor show the Germans seek redemption

Made in Germany has lost more ground in China and is now looking for a relaunch. On the eve of the Beijing Motor Show, in the most eagerly awaited preview events, those of the German brands, there was a feeling that they had to take cover in order to relaunch themselves in a Chinese market that continues to grow. The share of brands made in Germany, in fact, dropped from 26 per cent in 2019 to 16 per cent in 2025 for a total of 3.9 million units. After 25 years at the top, the Volkswagen group now has to reckon with a rapid and, perhaps, unexpected turnaround by the Chinese that has seen VW move from first to third place in new car sales, overtaken in 2024 by Byd and Geely at the end of last year.

When Volkswagen participated in its first car show in China, the one in Shanghai in 1985, huge crowds were impressed by the material quality of the Wolfsburg company's cars. The result has been that in the following years Volkswagen has, for more than two decades, dominated in China, while today mainly young people are turning away from the German brand that they consider their parents' car. The problem is that they are now even struggling to compete with local rivals that have won the hearts and minds of young buyers. And the challenge is intensifying as premium models are also in the sights of local brands.

The managers in Wolfsburg, but to some extent also those in Bmw and Merceces, underestimated the ability of Chinese manufacturers to develop electric vehicles so quickly. They did not expect this great change to arrive, nor the speed with which it occurred. German manufacturers must, now and immediately, transform their offerings in China, as the Asian market is also the first reference for future cars. To do this, both Volkswagen, BMW and Mercedes have decided to rely on Chinese suppliers to catch up, starting with the leader in autonomous driving Momenta and again the in-car software developer ECARX.

Volkswagen presented in Beijing four new electrified models developed with FAW's Chinese partners and electric car manufacturer Xpeng, just as Audi relied on the Chinese coliseum of Saic, even changing the logo of the four-ringed brand which is now just AUDI for China. Different are the choices made by BMW, which also presented the new iX3 for China, the first model in the New Klasse electric family offered not only in the long-wheelbase variant as is traditional in the Asian country, but also with a technology package made in China. And it has changed the door opening with a safety solution that will be mandatory in China.

Lastly, Mercedes, which in addition to the small Smart #2, the long-awaited model destined to revive the fortunes of the brand co-managed by the Stuttgart-based brand and Geely, is also preparing to produce its future models in China, naturally always in collaboration with Geely. While Porsche, the other premium brand of the Volkswagen group, cannot be excluded from catching up in the future with the support of some Chinese brand. In the meantime, the Zuffenhausen brand has decided to debut the last of its electric models presented in Europe, the Cayenne Turbo Coupe Electric, in conjunction with China. Made in Germany, at that level, is still a true reference.