As
competitio
i
the
Chi ese
automotive
secto
i te sifies,
Ge ma
ca
ma ufactu e s
a e
wit essi g
a
decli e
i
sales
a d
p ofitability.
Afte
decades
of
wi i g
ove
Chi ese
buye s
with
its
Ge ma
e gi ee i g,
Me cedes-Be z
G oup
AG
took
the
humbli g
step
last
fall
of
pa t e i g
with
fast-food
chai
McDo ald’s
to
hype
its
ewest
ca .
I
the
“So
Mc-Be z”
campaig ,
Me cedes
allowed
a
cheesebu ge
figu i e
to
take
the
spot
of
its
t aditio al
th ee-poi ted
sta
o
the
all-elect ic
CLA,
a
seda
it
hoped
would
stop
sales
f om
slidi g
i
the
wo ld’s
la gest
ca
ma ket.
The
ads
we e
supposed
to
make
the
vehicle
popula
with
Chi a’s
you g
a d
hip.
It
did ’t
wo k.
Me cedes
sold
o ly
1,153
u its
i
Chi a
i
the
fi st
half,
a
f actio
of
the
mo e
tha
80,000
simila ly
p iced
SU7
seda s
Xiaomi
Co p.
delive ed
i
the
pe iod.
The
pe fo ma ce
echoes
the
challe ges
BMW
AG,
Volkswage
AG
a d
Po sche
AG
face
i
Chi a,
whe e
they
all
epo ted
seco d-qua te
sales
decli es
of
at
least
30pe
ce t,
wo se
tha
the
ove all
ma ket’s
d op.
Mea while,
the
likes
of
Xiaomi
a d
BYD
Co.
a e
taki g
custome s
f om
them,
dep ivi g
the
Ge ma s
of
a
key
g owth
a d
p ofit
d ive .
So
fa ,
o e
of
them
has
fou d
a
way
to
a est
the
dow wa d
spi al.
It’s
ot
that
they’ e
ot
t yi g.
Most
of
them
have
pa t e ed
with
Chi ese
compa ies
to
gai
access
to
the
latest
EV
tech ology
a d
bette
u de sta d
what
local
d ive s
wa t.
Me cedes
built
a
lo g-wheelbase
ve sio
of
the
CLA
to
appeal
to
Chi ese
tastes
fo
a
oomie
back
seat.
It
packed
the
ca
with
softwa e
i cludi g
AI-powe ed
voice
co t ol
a d
p iced
it
f om
just
229,000
yua
($33,943),
oughly
40pe
ce t
cheape
tha
the
Eu opea
ve sio .
I stead
of
wi i g
clie ts,
Me cedes
had
to
co cede
that
competi g
i
Chi a
would
equi e
eve
fu the
p ice
cuts
that
would
see
it
lose
mo ey
o
almost
eve y
elect ic
CLA
sold,
acco di g
to
people
familia
with
the
matte .
The
compa y
is
limiti g
its
push
fo
the
ca
u til
eco omics
imp ove,
the
people
said,
aski g
ot
to
be
ide tified
discussi g
i te al
comme cial
decisio s.
Me cedes
said
the
model
was
eve
mea t
to
d ive
volume
but
athe
show
off
the
compa y’s
latest
tech ology
i
the
hotly
co tested
e t y-level
segme t.
The
ca make
is
“focusi g
o
sustai able
g owth
athe
tha
pu chasi g
sho t-te m
ma ket
sha e,”
it
said
i
a
emailed
stateme t.
The
compa y
poi ted
to
the
elect ic
GLC,
a
compact
spo t
utility
vehicle
i t oduced
i
Chi a
last
mo th,
as
doi g
well
i
te ms
of
ma ket
feedback
a d
p e-o de s.
Chi ese
ma ufactu e s,
mea while,
a e
willi g
to
e du e
sig ifica t
pai
to
wi
ma ket
sha e.
BYD’s
fi st-qua te
p ofit
tumbled
55pe
ce t
to
its
lowest
level
i
mo e
tha
th ee
yea s
as
the
p ice
wa
takes
its
toll.
Geely
Automobile
Holdi gs
Ltd.’s
i come
also
fell
i
the
pe iod.
At
this
poi t,
sig ifica t
pa ts
of
Ge ma
ca make s’
offe i gs
a e
simply
p iced
out
of
Chi a,
acco di g
to
JPMo ga
a alyst
Jose
Asume di.
While
the
ove all
Chi ese
ma ket
is
dow
due
to
a
p ot acted
eal
estate
c isis
that’s
weighi g
o
spe di g,
Ge ma
compa ies
a e
losi g
out
mo e
because
thei
li eups
te d
to
be
p icie
a d
featu e
mo e
combustio -e gi e
ca s,
a
segme t
that’s
i
decli e.
BMW
slashed
its
ma gi
outlook
due
to
the
Chi a
slump,
putti g
it
o
cou se
to
be
the
least
p ofitable
majo
Eu opea
automake
this
yea .
Ma age s
i cludi g
Me cedes
Chief
Executive
Office
Ola
Källe ius
expect
the
ma ket
to
emai
b utally
competitive
fo
yea s
to
come.
The
p oblem
is ’t
o ly
p ice.
I
ma y
cases,
Ge ma
ca make s
still
ope ate
o
the
developme t-to-ma ket
schedule
of
the
gasoli e
e a,
ef eshi g
p oducts
eve y
fou
yea s
o
lo ge ,
a d
teasi g
s ippets
of
ew
ca s
lo g
befo e
d ive s
ca
buy
them.
But
i
Chi a,
the
EV
ma ket
has
come
to
esemble
the
f e zied
pace
of
co sume
elect o ics,
with
b a ds
ejuve ati g
ca s
as
fast
as
18
mo ths
a d
havi g
a
ew
model
eady
fo
mass
pu chase
ight
off
the
bat.
“A d
while
it’s
bei g
sold,
you’ e
al eady
maki g
the
ext
ite atio ,”
said
Xi g
Zhou,
a
automotive
advise
at
AlixPa t e s
who
has
wo ked
i
both
Ge ma y
a d
Chi a.
“The e’s
o
way
that
this
i dust y
will
go
back
to
the
old
way.”
That’s
fueli g
a
fu dame tal
shift
i
b a d
pe ceptio
i
Chi a,
whe e
Me cedes,
Audi
a d
BMW
a e
losi g
thei
luxu y
edge
because
they’ e
pe ceived
as
t aili g
local
ma ufactu e s
o
softwa e
a d
EV
tech ology.
Pa t
of
why
the
elect ic
CLA
is
floppi g
is
because
ivals
led
by
Xiaomi’s
SU7
domi ate
the
segme t
at
that
p ice
poi t
with
mo e
adva ced
automated-d ivi g
fu ctio ality,
a
mobile-pho e
fi st
e te tai me t
system
a d
hippe
b a di g,
said
Li
Ya wei,
who
advises
the
Chi a
Automobile
Deale s
Associatio .
The
CLA’s
spo ty
desig
t ies
to
cate
to
a
you ge
c owd,
ig o i g
Me cedes’
t aditio al
middle-aged
custome s
who
te d
to
have
families
a d
p efe
bigge
i te io s,
he
added.
The
CLA
“is
i
a
awkwa d
place
whe e
it’s
ot
the
most
affo dable
a d
ot
the
most
luxu ious,”
Li
said.
That’s
ki d
of
what
Flo a
Li
a d
he
husba d
felt
whe
they
we t
shoppi g
fo
thei
seco d
ca .
They
looked
at
a
a ge
of
elect ic
models
i cludi g
the
CLA,
the
SU7,
a d
the
Z7
seda
Chi a’s
SAIC
Moto
Co p.
is
maki g
i
pa t e ship
with
tech
compa y
Huawei
Tech ologies
Co.
Whe
testi g
the
vehicles,
the
CLA’s
automated-d ivi g
softwa e
did ’t
co vi ce
he ,
a d
the
ca
was
slow
i
espo di g
to
voice
comma ds,
she
said.
“The
CLA’s
ha dli g
was
good
fo
a
EV
a d
close
to
the
feel
of
a
gasoli e
ca
but
just
ot
as
good
as”
some
of
the
Chi ese
optio s,
she
said.
Eve tually,
the
couple
bought
SAIC’s
Z7,
pe suaded
by
its
Huawei-powe ed
tech ology.
The
expe ie ce
shi es
a
light
o
Ge ma
ca make s’
st uggles
i
Chi a,
a
ma ket
they
used
to
domi ate
with
little
effo t.
Thei
demise
the e
sta ted
comi g
to
the
fo e
a ou d
2023,
afte
a tificially
high
etu s
dissipated
whe
sho tages
of
chips
a d
othe
compo e ts
g adually
eased.
That’s
whe
local
ma ufactu e s,
bolste ed
by
state
suppo t
but
also
supe io
EV
tech ology
a d
softwa e,
bega
to
domi ate.
The
gove me t’s
push
of
the
i dust y
has
c eated
some
150
domestic
ca
b a ds,
a d
they
alo e
chu ed
out
some
500
ew
o
updated
models
i
the
fi st
half
of
the
yea ,
acco di g
to
Volkswage
CEO
Olive
Blume.
It’s
a
“Chi a
Speed”
fo eig
ca make s
st uggle
to
match.
The
shift,
which
has
accele ated
si ce
the
sta t
of
this
yea ,
is
sta vi g
the
Ge ma
ca make s
of
etu s
that
help
keep
costly
ca
p oductio
goi g
i
thei
home
cou t y.
Blume
i
Ju e
said
Volkswage ’s
busi ess
model
was
esse tially
b oke .
The
comme ts
paved
the
way
fo
his
pla
to
cut
100,000
jobs
a d
shutte
Ge ma
facto ies,
t igge i g
stau ch
oppositio
f om
powe ful
labo
leade s.
I
Chi a,
Blume
is
betti g
o
pa t e ships
with
Xpe g
I c.
a d
state-ow ed
SAIC
to
ejuve ate
the
VW
a d
Audi
b a ds.
The
fi st
of
the
ew
VW-Xpe g
models,
the
ID.U yx
08,
we t
o
sale
o ly
ece tly,
mea i g
the e’s
little
data
to
judge
its
success.
Delive ies
of
the
Chi ese
AUDI
sub-b a d’s
E5
Spo tback,
which
has
bee
out
fo
oughly
a
yea ,
have
bee
u de whelmi g
despite
the
ca
ga e i g
c itical
acclaim.
Fo
BMW,
which
i
Ju e
slashed
its
p ojected
ca maki g
ma gi
to
as
low
as
1pe
ce t
because
of
the
decli e
i
Chi a,
the
mai
test
is
a ou d
the
co e .
The
compa y
is
about
to
emba k
o
its
most
ambitious
push
i
the
cou t y
i
yea s
with
the
fi st
two
of
its
evamped
Neue
Klasse
models,
the
elect ic
i3
seda
a d
the
iX3
SUV.
The
latte
will
ope
fo
p e-sales
i
Chi a
o
Aug.
21.
Both
a e
lo g-wheelbase
models
cate i g
to
local
d ive s.
The
ma ufactu e
has
spe t
mo e
tha
€10
billio
o
the
Neue
Klasse
li e,
a gui g
at
the
i itial
u veili g
last
Septembe
that
the
tech ology
was
setti g
ew
be chma ks.
But
ea ly
a
yea
late ,
it’s
u clea
whethe
it
ca
ushe
i
a
tu a ou d
i
Chi a.
BMW
has ’t
yet
eleased
a
p ice
fo
the
Chi ese
iX3,
see
key
to
wi
back
favo
with
the
cou t y’s
you ge
custome s.
To
be
competitive,
the
SUV
p obably
would
eed
to
get
a
compa able
sticke
tha
Tesla’s
Model
Y,
which
sta ts
at
a ou d
264,000
yua .
I
Ge ma y,
BMW
cha ges
ea ly
twice
fo
the
iX3’s
base
ve sio .
The
Model
Y
L,
a
oomie
ve sio
desig ed
specifically
fo
the
Chi ese
ma ket,
costs
f om
339,000
yua .
While
the
ju y
is
still
out
o
BMW’s
imp oved
offe i g
i
Chi a,
ea ly
sig s
like
the
slow
sales
of
the
CLA
do ’t
bode
well
fo
the
Ge ma s.
Eve
high-e d
ve sio s
that
appeal
to
Eu opea
d ive s
looki g
fo
lo g
Autobah
ides
a e
st uggli g
i
Chi a
as
competito s
i t oduce
equally
efficie t
models
faste ,
b immi g
with
featu es
cate i g
to
local
tastes,
like
ka aoke
machi es
a d
seats
that
fold
flat
fo
ca
campi g.
Whe
Summe
Che ,
a
32-yea -old
tou ism
wo ke
f om
Che gdu,
we t
shoppi g
fo
a
ew
EV,
Me cedes
was
at
the
top
of
he
mi d.
He
family
had
ow ed
a
E300
seda
fo
a ou d
10
yea s
a d
she
was
eady
to
pay
slightly
mo e
to
stick
with
the
ve e able
Ge ma
b a d.
But
whe
she
checked
out
the
CLA
at
a
deale ship,
she
was
disappoi ted
by
what
she
felt
was
a
old-fashio ed
use
i te face
a d
clu ky
dashboa d
sc ee s.
I
the
e d,
she
we t
fo
Tesla’s
Model
3,
citi g
its
supe io
desig .
“Sma t
featu es
a e ’t
a
adva tage
fo
Me cedes,”
Che
said.
“Whateve
the
compa y
comes
up
with,
Tesla,
Xiaomi
a d
Huawei
ca
too.”
-
Published
O
Aug
11,
2026
at
02:05
PM
IST
