A Tough Year for European Automakers in China

European automakers ended a challenging year in the world’s largest auto market, with most brands witnessing a decline in sales and market share.

According to Reuters, Mercedes-Benz sold approximately 750,000 vehicles in China in 2024, a 7% decrease from the previous year. The German automaker has been forced to cut costs and readjust its profit expectations twice in the face of declining sales.

In July, Mercedes-Benz also faced a crisis involving water leaks in its luxury Maybach sedans, leading to consumer protests and a months-long boycott in China.

Audi, another prominent brand, experienced a similar downturn. They sold around 320,400 vehicles in China in 2024, a 1.8% drop from 2023. The majority of these sales came from the FAW-Audi joint venture, with the A6L model being their top-seller.

Audi Q8 e-tron. Photo: Audi.

To turn things around, Audi is negotiating with SAIC to collaborate on electric vehicle platforms, focusing on developing new energy vehicles for the Chinese market.

Volkswagen, the world’s largest automaker, had a difficult year in China as well, with an 8.3% decline in sales to 2.2 million vehicles. The company even announced the closure of its Xinjiang plant in an effort to improve financial performance.

Porsche also faced a significant downturn, with a 28% decrease in sales to 56,887 vehicles in China for 2024. China is Porsche’s most important market, so this decline had a substantial impact on their global sales.

According to Reuters, Porsche’s sales in Germany grew by 11% in 2024, but it wasn’t enough to offset the global decline, which stood at 3% for the year.

A challenging new year awaits European automakers in China.

In October, Porsche announced plans to streamline its dealer network in China, focusing on major cities like Shanghai and Beijing for its showrooms and stores.

The performance of European automakers in China in 2024 highlights the intense competition and consumer shift towards domestic electric vehicles. Brands like Mercedes-Benz, Audi, Porsche, and Volkswagen have had to reevaluate their strategies to adapt to this dynamic and crucial market.

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