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Foreign carmakers lose more traction in China as luxury stronghold erodes

International luxury car brands from Mercedes-Benz to Land Rover took a further beating in China last month as wealthy consumers continued to shun expensive petrol-powered…

By Samantha Johnson / July 22, 2026

International luxury car brands from Mercedes-Benz to Land Rover took a further beating in China last month as wealthy consumers continued to shun expensive petrol-powered vehicles.

Struggling against competition from China’s rising electric vehicle (EV) powerhouses, international marques would find it more difficult to retain their market share and maintain profitability in the world’s largest automotive market, analysts said.

According to data from the China Passenger Car Association (CPCA), luxury auto brands reported sales of 162,224 vehicles last month, down 29.5 per cent from the same period in 2025.

The luxury category includes only two indigenous EV brands, BYD’s Yangwang and JAC Group’s Maextro. Most of the more than 10 other marques are international brands, including BMW, Jaguar and Infiniti, that offer only petrol cars in the mainland market.

“The luxury segment was believed to be international brands’ stronghold, as more low-priced electric cars developed by Chinese companies showed an upper hand in the mass market,” said Zhao Zhen, a sales director at Shanghai dealer Wan Zhuo Auto. “The downward trend is set to continue amid consumers’ waning demand for premium cars and increasing penchant for EVs due to rising crude oil prices.”

CPCA data showed that luxury car deliveries during the first half slumped 17.9 per cent year on year to 967,929 units.

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