Sales of high-end vehicles in China dropped 22% year-on-year in November 2025, reflecting weakening consumer demand and broader economic headwinds. The decline is significantly impacting European luxury automakers, including BMW, Mercedes-Benz, and Volkswagen Group, with implications for their global earnings and investor sentiment.
- China's high-end car sales declined 22% year-on-year in November 2025
- BMW, Mercedes-Benz, and Audi saw sales drops of 18%, 21%, and 24% respectively in China
- Chinese luxury vehicle demand is now down 15% or more over the past two months
- European automakers derive between 15% and 20% of global sales from China
- Shares of BMW.DE, MBG.DE, and VOW3.DE showed negative movement in early December
- Market sentiment has prompted revised revenue forecasts for Asia-Pacific operations by 10–15%
A sharp contraction in China’s luxury vehicle market has emerged as a growing concern for European automakers, with November 2025 sales of premium cars falling 22% compared to the same period last year. This downturn, driven by reduced household spending and persistent economic uncertainty, is undermining a key growth engine for companies such as BMW, Mercedes-Benz, and Audi. The decline follows a 15% drop in October, signaling a sustained trend rather than a temporary fluctuation. The data underscores the fragility of consumer confidence in China’s top-tier automotive segment, where demand for vehicles priced above ¥500,000 has weakened noticeably. For BMW, which derives approximately 18% of its global sales from China, the drop translates into a direct hit on profitability. Similarly, Mercedes-Benz Group reported a 21% year-on-year decline in China deliveries, while Volkswagen’s premium brands, including Audi, experienced a 24% sales contraction in the same region. These figures have already begun to affect market performance, with shares of BMW.DE, MBG.DE, and VOW3.DE showing negative momentum in early December trading. The broader European auto sector, already grappling with shifting EV demand and supply chain adjustments, now faces added pressure from declining export revenues. Investors are reassessing full-year forecasts, with some analysts revising downward expectations for European automakers’ Asia-Pacific revenue by 10–15%. The slowdown in China also has ripple effects beyond the automotive industry, affecting luxury goods companies whose sales are closely tied to high-net-worth consumers. Financial instruments like LVMHY.PA, which tracks high-yield bonds linked to luxury and discretionary spending, have seen increased volatility, reflecting broader market concerns about consumer resilience in the world’s second-largest economy.