Global Brands Losing Ground in China’s EV Race
Foreign automakers are under growing pressure at this year’s Shanghai auto show as Chinese electric vehicle (EV) makers continue to gain ground. Chinese brands are now dominating the market with stylish, affordable, and high-tech EVs, leaving global brands scrambling to keep up.
Legacy brands have steadily lost their grip on market share across all price segments. Once considered untouchable, even luxury marques are now being outpaced. The shift is being driven by Chinese companies offering advanced EV drivetrains and state-of-the-art interiors at lower prices.
Porsche Faces Steep Decline Amid EV Boom
Germany’s Porsche has become a prime example of this shift. Once a top luxury name in China, Porsche saw its sales plummet by 42% in the first quarter. This sharp drop follows a steady decline since its 2021 peak, when it sold nearly 96,000 cars in China — about a third of its global total that year.
Unlike other Volkswagen Group brands like Audi and VW, Porsche chose to showcase petrol-powered 911 variants in Shanghai. Vintage models and a sign reading “There is no substitute” highlighted its display, but this nostalgic approach failed to attract modern Chinese buyers.
Local competitors such as BYD’s Yangwang and Xiaomi are now gaining momentum. Xiaomi’s electric SU7 sedan drew widespread attention with Porsche-inspired looks and a significantly lower price. The high-performance SU7 Ultra, boasting 1,548 horsepower and priced from 529,900 yuan (around $72,600), received 10,000 pre-orders within two hours.
By comparison, Porsche’s entry-level 911 costs more than 1.4 million yuan ($201,000) and has far less power.
Industry Giants Struggle to Keep Pace
Porsche isn’t the only foreign brand struggling. Nissan recently pledged $1.4 billion to launch 10 new models in China after years of declining sales. Nissan’s local head admitted Chinese automakers were “too fast” in releasing competitive models.
Other brands, such as General Motors, are also trying to recover. After taking a $5 billion charge on its Chinese operations, GM is betting on its Cadillac brand and MPV leader Buick GL8. Buick introduced a high-tech EV concept version of the GL8 to fend off competition from BYD’s Denza, Li Auto, and Xpeng, which now offer features like massage seats, refrigerators, and even gold trim.
Zeekr, a Geely-owned brand, launched the luxurious 009 Grand MPV with a 43-inch TV and 24-karat gold logos, showcasing the extreme innovation and opulence demanded by today’s Chinese consumers.
EV Market Moves Fast – And Foreign Brands Lag
Chinese brands now set the pace across all segments. Xiaomi expects to sell 350,000 vehicles next year. Nio’s sales rose nearly 39% last year and it aims to double that with nine new EV models. These rising stars are pushing foreign brands further out of the market.
Experts believe foreign carmakers are unlikely to regain their lost share. While some remain optimistic, time is running short. As one Buick executive put it: “It’s a race against the clock.”
with inputs from Reuters
