The economic slowdown of China is increasing the pressure on German car manufacturers, who are facing a structural change in the market that for years sustained a good part of their international expansion. This was acknowledged this Saturday at the Beijing Auto Show by the president of the German employers' association VDA, Hildegard Mueller, who warned that the conditions that favored brands like BMW, Mercedes-Benz or Volkswagen for decades have changed profoundly.
“Competition in the Chinese market is the most intense in the world,” Mueller told the media, in a message that reflects the new scenario facing German industry in its main foreign market.
End of an era of hegemony
For years, German manufacturers especially dominated the premium segment in China, benefiting from the growth of the urban middle class, the expansion of credit, and the prestige associated with European brands.
However, the sector's employers' association now assumes that this historical market share can no longer be used as a yardstick for success. According to Mueller, Chinese manufacturers will play an increasingly important role both in the present and in the future.
More prudent consumer and weaker economy
The slowdown of the world's second-largest economy is also affecting consumption. Mueller warned that high unemployment and the need for savings among many families are already noticeable in vehicle sales, especially in the luxury segment, a traditional strength of German firms.
That turn represents an additional challenge: fewer buyers willing to pay high prices and more sensitivity to technological value and final price.
Chinese brands move up to the premium segment
While European brands try to defend positions, local manufacturers like Geely or Nio took advantage of the Beijing fair to present new models with advanced technology and more competitive prices than their German rivals.
The phenomenon reflects an increasingly visible trend: China no longer only competes in the mid-range or affordable vehicle segment, but also in high value-added segments where Mercedes or BMW previously reigned almost alone.
A European problem with global impact
For Germany, the issue transcends the commercial. The automobile is one of the pillars of its industrial economy and export employment. A sustained loss of weight in China can affect business profits, investment, and technological capacity.
In other words, what happens in Chinese dealerships also has consequences in German factories.
New era for the German engine
German manufacturers still retain brand, engineering, and innovation capacity, but the message launched from Beijing is clear: the Chinese market no longer guarantees Europe's automatic leadership.
And for German industry, accustomed to growing by looking to Asia, that represents something more than a cyclical adjustment: it is a change of era.