Foreign carmakers lose more traction in China as luxury stronghold erodes

International luxury car brands, including Mercedes-Benz and Land Rover, experienced a significant sales decline in China last month. Wealthy consumers are increasingly avoiding expensive gasoline-powered vehicles. This trend is attributed to the growing competition from China's domestic electric vehicle (EV) manufacturers. According to the China Passenger Car Association (CPCA), luxury auto brands sold 162,224 vehicles last month, a 29.5% decrease compared to the same period in 2025. Analysts suggest that international marques will face greater challenges in maintaining their market share and profitability in China due to these shifts in consumer preference and market dynamics.