German auto industry faces even tougher competition as China economy slows

Bayerische Motoren Werke AG

25/04/2026 09:21

BEIJING, April 25 (Reuters) - China’s economic slowdown is squeezing Germany's carmakers further as they face a lasting shift away from the market conditions that underpinned years of dominance, a German industry official said at the Beijing auto show on Saturday.

"The competition in the Chinese market is the most intense competition in the world," Hildegard Mueller, president of Germany's VDA auto lobby, told reporters.

German automakers are still in the fight thanks to a clutch of model launches and tech innovations at the event.

However, they must accept that their historically strong market share in China can no longer be held as a benchmark for success, Mueller said.

"The Chinese manufacturers will have a bigger role now and in future," she added, with patriotism playing a role among Chinese consumers.

While there was still growth potential in China as opposed to Europe or the United States, a slowdown in the world's second-largest economy was intensifying challenges.

"China is in economic crisis with high unemployment and many have to save. This is visible in car sales, particularly in the upper luxury segment," Mueller said.

Still, Chinese brands like Geely 9866.HK and Nio made moves on this segment at the show, presenting new cars with advanced features at cheaper prices than German rivals like Mercedes MBGn.DE and BMW BMWG.DE.

 (Reporting by Rachel More; Editing by Susan Fenton)

 ((rachel.more@thomsonreuters.com))