Chinese car manufacturers are running at full speed while thinking.

Behind China's new energy vehicles maintaining the world's top position for nine consecutive years, the global automotive industry is undergoing an epic power shift.

The competitive landscape of car - making has changed. The mechanical industry narrative originally composed of engines and gearboxes is being challenged by the "three - electric systems + software ecosystem + advanced supply chain integration capabilities" of new energy vehicles. In the future, everyone's battlefield lies in intelligence - whoever can mass - produce "intelligent agents on four wheels" first.

In this context, "Starship Knowledge Manufacturing" has noticed three hot - button issues and it's worth having some in - depth reflections.

1. In China, is the decline of traditional fuel - powered luxury cars irreversible?

2. Globally, will fuel - powered cars exit the market ahead of schedule?

3. In the industrial sector, is battery swapping a sustainable development model?

The Costly "Exit"

The trend is very obvious - European and American fuel - powered luxury cars are losing their luster in China, and the defining power of high - end cars is shifting to China.

The decline of European and American fuel - powered luxury cars in China is essentially a manifestation of the transfer of industrial power:

China's new energy vehicles are redefining the standards of luxury cars through technological reconstruction (such as batteries and intelligent systems) and experience reconstruction (such as intelligent cockpits and software ecosystems).

source: pexels

First, there is a widespread decline among luxury car brands.

A recent analysis report by consulting firm EY in 2025 shows that the German automotive industry has shed approximately 51,500 jobs in the past year, making it the most affected industrial sector in Germany.

Cost - cutting plans of automakers such as Mercedes - Benz and Volkswagen, and parts suppliers such as Bosch and Continental Group are, to some extent, affected by the high tariffs in the United States and the soaring energy prices.

Looking at the domestic luxury car market in China, in 2024, the sales of overseas luxury car brands such as Mercedes - Benz, BMW, Audi, Bentley, Maserati, and Rolls - Royce all declined:

Porsche delivered 56,900 vehicles in the Chinese market in 2024, a year - on - year decrease of 28%. The Chinese market dropped from Porsche's largest global market to the third. On April 8th, Porsche released the global vehicle delivery data for the first quarter of 2025. The delivery volume in the Chinese market dropped significantly by 42% to 9,471 vehicles, nearly 7,000 fewer than the same period last year;

Data from the China Passenger Car Association shows that from January to February 2025, the number of imported cars in China was 56,000, a year - on - year decrease of 46%. The sales of imported ultra - luxury cars dropped by 31% from January to February.

Luxury cars powered by eight - cylinder and twelve - cylinder fuel engines are no longer in the limelight.

The exit and rebranding of 4S stores represented by traditional BBA brands are a direct reflection of market sentiment.

source: unsplash

Secondly, price wars are accelerating the "fall" of brands. European and American luxury brands hoped to maintain prices by reducing production, but instead faced shrinking sales and then joined the price war.

BMW: In 2024, BMW Group's pre - tax profit was 10.971 billion euros, a year - on - year decrease of 35.8%; the after - tax net profit was 7.678 billion euros, a year - on - year decrease of 36.9%;

Mercedes - Benz: In 2024, Mercedes - Benz Group's after - tax net profit was 10.409 billion euros, a year - on - year decrease of 28.4%;

Audi: In 2024, Audi Group's after - tax net profit was 4.189 billion euros, a year - on - year decrease of 33.08%;

Japanese brands are also having a hard time. Since the end of 2024, Nissan has been seeking to "sell itself" to Honda and Foxconn. In the third fiscal quarter of 2024 (from October 1st to December 31st), Nissan reported a net loss of 14.1 billion yen, with an operating profit margin of only 1%.

To survive, Nissan first cut 20% of its global production capacity and then urgently laid off 9,000 employees. The CEO "voluntarily gave up half of his monthly salary". Subsequently, Nissan extended an olive branch to Honda and Foxconn. Former Nissan CEO Carlos Ghosn complained, "This is a desperate move. There is almost no complementary relationship between Nissan and Honda."

source: unsplash

Toyota, the world's largest automotive group, had a cumulative global sales volume of over 10.82 million vehicles in 2024. Although it ranked first globally for five consecutive years, Toyota's net profit in the 2024 fiscal year is expected to be 4.52 trillion yen, an 8.6% decrease from the previous fiscal year.

At the beginning of 2025, the news that Lexus would be locally produced in Shanghai was like a bombshell. For years, Lexus has been sold in China as an imported brand to maintain its high - end brand image. Producing in Shanghai means that this Japanese luxury brand, which has always presented itself as an imported brand, has taken a crucial step towards local production in China:

After local production, Lexus will be able to source parts locally, reducing production and logistics costs and enhancing price competitiveness.

source: unsplash

The downward trend of traditional fuel - powered luxury cars is difficult to reverse at present. According to "Starship Knowledge Manufacturing", there are probably two reasons:

Firstly, Chinese consumers are accelerating the redefinition of "luxury cars".

Secondly, there are limitations to the self - rescue strategies of luxury brands.

The decline of established luxury car brands in China is first embedded in the background of "new energy vehicles are making strong inroads, while fuel - powered cars are gradually retreating"👇

Since 2023 -

The global annual car sales volume was 89.01 million units, among which the sales volume of new energy vehicles reached 14.29 million units, marking a relative decline in the proportion of fuel - powered car sales.

China's market share in the global pure - electric vehicle market reached 63.9% in 2024, slightly lower than the 68.9% market share in the new energy vehicle market, while the market share of plug - in hybrid vehicles was as high as 78%.

In 2024, the retail penetration rate of new energy passenger cars in China exceeded 50% for several consecutive months. Among them, plug - in hybrid vehicles became the main driving force for the growth of new energy vehicles.

Secondly, the younger generation of Chinese consumers are no longer easily convinced by the mindset that "luxury cars = established European and American brands", which is embedded in two larger contexts.

Firstly, the era of "US dollar hegemony" is gradually declining.

For a long time, the US dollar had the privilege to exploit the world, turning global trade into America's warehouse.

Now, the bilateral RMB settlement agreements are continuously expanding -

France has become the first European country to sign a trade agreement that allows payments in the Chinese currency, the RMB, instead of the US dollar or the euro. The liquefied natural gas transaction between CNOOC and TotalEnergies was the first liquefied natural gas purchase settled in RMB for both China and France.

"Two financial systems", one based on the US dollar and the other on non - US dollars (RMB + local currency settlement), are taking shape.

source: giphy

There is also a shift between old and new energy - producing countries.

China, which is "short of oil and gas but relatively rich in coal", did not have the potential to become a "major power" in the era of old energy.

But in the era of new energy -

The new coal: wind and solar energy;

The new oil: hydrogen energy and lithium batteries.

Wind, solar, lithium, and hydrogen energy will eventually replace old fossil fuels. In the new system, China is rising as an energy - producing major power.

source: unsplash

Looking at specific luxury car products, domestic "luxury cars" such as Yangwang and Zunjie are gradually gaining ground and have snatched a large share of the market from established fuel - powered luxury cars.

● In April 2023, BYD launched the Yangwang U8. As soon as it was launched, with a starting price of 1.098 million yuan, it became the most expensive new energy SUV in China at that time. In terms of sales, from January to December 2024, Yangwang delivered 7,366 units of the U8.

● In the million - level car segment, models such as the 1.68 - million - yuan Yangwang U9, the 1.5 - million - yuan Zunjie S800, the 789,000 - yuan Zeekr 009, the 700,000 - yuan Avatr 12, and the 779,800 - yuan Hongqi E - HS9 have all entered the luxury car market.

The high - end branding of Chinese new - energy vehicle startups in recent years is an important achievement👇

The average transaction price of models under Hongmeng Smart Mobility was approaching 400,000 yuan by the end of last year. The cumulative pre - orders of the Wenjie M9, which is priced over 500,000 yuan, exceeded 200,000 units within 12 months of its launch;

NIO ranked first in sales among pure - electric brands priced over 300,000 yuan in the Shanghai area for two consecutive years.

Yangwang U9 source: BYD

Domestic "luxury cars" are gaining ground mainly due to high cost - performance and new driving experiences that traditional luxury fuel - powered cars do not have👇

Performance balance: Domestic electric luxury cars perform well in terms of performance balance. The maximum power of the pure - electric version of some models can reach 200kW, and the cruising range can reach 636km, meeting the needs of long - distance travel;

Design aesthetics and sense of luxury: For example, the Zeekr 9X has unique recognition. The Chery Arrizo 8 PRO presents detailed designs such as smooth lines;

Re - definition of luxury cars by domestic consumers:

In the past, people thought that luxury cars should be equipped with power windows, leather interiors, electric seat memory, high - fidelity audio systems, etc.; in terms of safety design, there should be anti - collision buffers, bullet - proof glass, anti - lock braking systems (ABS), multiple airbags, etc.

In traditional standards, the starting price of luxury cars is 500,000 yuan, and the price of super - luxury cars (such as Maybach and Rolls - Royce) usually exceeds 2 million yuan.

● Traditional luxury cars usually refer to D - class cars, and their core standards include a wheelbase ≥ 3000mm and a displacement > 3.0 liters. Representative models include the Mercedes - Benz S - Class, BMW 7 Series, and Audi A8.

Now, new energy vehicles no longer need large - scale components such as fuel engines. After adding more and more technological elements and