Germany’s Big Three Automakers Face Major Decline in China; Audi’s Q3 Profit Plunges 91

Illustration: Audi A8 (Photo by Dai Bing / Dajiyuan)

People News - As the European Union tightens measures to prevent low-cost dumping of Chinese electric vehicles that threaten Europe’s automotive industry, Germany’s major car manufacturers are already facing significant setbacks in their Chinese operations. Mercedes-Benz, BMW, and Audi recently released their third-quarter financial results, revealing substantial declines in performance. BMW and Audi saw profits drop by 80–90%, largely due to unprecedented competition in their largest single market—China.

According to Radio Free Asia, the three automakers all cited "intense competition in the Chinese market" in their third-quarter earnings reports released in November.

For the first nine months of 2024, Mercedes-Benz sold 512,200 vehicles in China, a year-on-year decrease of 10.2%. BMW’s cumulative sales reached 524,000 vehicles, down 13.1%. Audi delivered approximately 477,200 vehicles, an 8.5% decline compared to the same period last year.

In the third quarter alone: Mercedes-Benz sold 170,700 vehicles in China, a year-on-year decline of 12.9%. BMW’s sales in China dropped by 29.8%, to just 147,700 vehicles. Audi delivered 157,500 vehicles, down 19.63% year-on-year. Mercedes-Benz’s earnings report highlighted the challenges of product transformation and especially fierce competition in the Chinese market.

Mercedes-Benz reported third-quarter revenue of €34.528 billion, a year-on-year decline of 6.7%, with net profit falling 53.8% to €1.719 billion. BMW saw third-quarter revenue of €32.406 billion, down 15.7%, with net profit plummeting by 83.8% to €476 million. Audi experienced the most dramatic profit drop. Its Q3 revenue was €15.322 billion, down 5.5%, while operating profit fell a staggering 91% to just €106 million.

In the first three quarters of this year: Mercedes-Benz reported revenue of €107.144 billion, a year-on-year decline of 4.7%, with net profit falling 31.4% to €7.806 billion. BMW posted revenue of €105.964 billion, down 5.8%, with net profit decreasing by 35.8% to €6.132 billion. Audi's revenue dropped from €50.39 billion to €46.262 billion, a year-on-year decline of 8.2%, while operating profit plunged from €4.595 billion to €2.09 billion, a sharp decrease of 54.57%. 

According to The Paper in China, the rise of domestic high-end electric vehicle brands such as Nio, Li Auto, and Aito is reshaping the Chinese automotive market. These brands are leading the market in China, significantly squeezing the market share of traditional luxury car manufacturers.

Data from the China Passenger Car Association (CPCA) shows that in October, traditional luxury brands accounted for only 9.2% of retail market share, a year-on-year decrease of 4 percentage points. The decline in retail share for traditional luxury vehicles is evident.

In contrast, domestic high-end EV brands have repeatedly hit new sales records and continue to maintain robust growth momentum.