German auto industry faces even tougher competition as China economy slows

Reuters
By Reuters April 26, 2026 02:32 (EAT)
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German auto industry faces even tougher competition as China economy slows

The Mercedes-Benz logo is seen on a car in front of the Mercedes-Benz Museum in Stuttgart, Germany February 11, 2020. REUTERS

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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 and Nio made moves on this ⁠segment ​at the show, presenting new cars ​with advanced features at cheaper prices than German rivals like Mercedes ​and BMW.

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