German carmakers lose ground in China, seen as ‘for the parents’
German carmakers, including Volkswagen, BMW, and Mercedes-Benz, are losing ground in China to local brands that are producing affordable electric vehicles. The German companies are struggling to adapt to the shift towards EVs and are being overtaken by Chinese brands such as BYD and Geely.
German carmakers are losing their edge in China, where local brands are dominating the electric vehicle (EV) market. Volkswagen, once China's top carmaker, was overtaken by BYD in 2024 and slipped to third place behind Geely in 2025. The company's China CEO, Robert Cisek, acknowledged that younger customers may perceive Volkswagen as a brand for their parents. German carmakers are struggling to compete with Chinese brands that are producing flashy, affordable EVs. Volkswagen plans to launch 20 new energy vehicles in China this year, including all-electric models and plug-in hybrids. The company will premiere four new EVs at the Beijing Auto Show, including models developed with Chinese partners FAW and Xpeng.
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