EV Co Highlights Weakening German Luxury Car Outlook in China as Local EV Brands Gain Ground

EV Co has shared an update. The post highlights recent forecasts indicating that Mercedes-Benz and BMW expect significantly softer demand in China by 2026, with each projecting annual sales of fewer than 500,000 locally produced vehicles—levels comparable to roughly a decade ago. This follows consecutive double-digit annual sales declines in 2024, with Mercedes-Benz’s China sales down 19% to 551,900 units and BMW’s down 12.5% to 625,527 units, as domestic EV brands such as Nio and Aito accelerate growth in the rapidly electrifying premium segment.

For investors, the update underscores an ongoing structural shift in China’s premium auto market from traditional foreign OEMs to local electric-vehicle manufacturers. While the post does not disclose EV Co’s own financials or operations, it points to a market environment where incumbent luxury brands are retrenching and Chinese EV-focused players are capturing share. If EV Co is positioned within China’s EV ecosystem—whether as an OEM, supplier, or technology provider—these dynamics may translate into a larger addressable market, stronger pricing power in selected niches, or improved partnership opportunities with domestic brands. Conversely, intensifying competition, potential price wars, and margin pressure across the sector could weigh on profitability, even for growth-oriented players. Overall, the trends described suggest an industry landscape increasingly favorable to agile EV specialists relative to legacy combustion-focused manufacturers, with implications for revenue growth trajectories and valuation multiples across the Chinese premium auto and EV supply chains.