Luxury / news
Foreign luxury car sales in China tumble as wealthy buyers shift to EVs
International luxury auto brands including Mercedes-Benz, BMW and Land Rover saw a sharp drop in China last month, as affluent consumers increasingly favor electric vehicles over petrol-powered models.
Sales of foreign luxury cars in China fell 29.5 percent in June compared with the same month last year, according to the China Passenger Car Association (CPCA). Total deliveries reached 162,224 vehicles, reflecting a continued erosion of what was once a stronghold for international brands.
For the first half of the year, luxury car sales slumped 17.9 percent year on year to 967,929 units. The decline was broad-based, hitting marques such as Mercedes-Benz, BMW, Land Rover, Jaguar and Infiniti.
Wealthy Chinese consumers are increasingly shunning expensive petrol-powered vehicles in favor of cheaper electric cars from domestic manufacturers, said Zhao Zhen, a sales director at Shanghai dealer Wan Zhuo Auto. He pointed to rising crude oil prices and waning demand for premium cars as key factors.
The luxury segment was long considered a safe haven for foreign automakers, but the rise of Chinese EV makers like NIO and BYD is now pressuring high-end models as well. Industry observers expect the trend to accelerate.