The last stronghold of the BBA is on the verge of collapse.

Over the past two decades, the "German Big Three" - BMW, Mercedes-Benz, and Audi - entered the Chinese market with their brand reputation and imported status, becoming synonymous with luxury and status in the eyes of consumers. However, with the rapid rise of Chinese domestic new energy brands, the Big Three are gradually losing market share in the first two of their three main market segments from low to high.

In the entry-level luxury sedan market, the terminal prices of the representative models "34C" (BMW 3 Series, Audi A4L, Mercedes-Benz C-Class) have significantly dropped to the 200,000 yuan range. For example, the guide price of the 2025 Mercedes-Benz C260L Sport is 356,800 yuan, and the naked car price at a 4S store in Beijing has dropped to 250,000 yuan, on top of which a 25,000 yuan scrapping subsidy can be added.

Nevertheless, the price concessions have not effectively boosted sales. In the first half of 2025, the sales of the Mercedes-Benz C-Class and Audi A4L decreased by 16% and 27% year-on-year respectively, while only the BMW 3 Series achieved a slight increase. Meanwhile, the sales share of new energy vehicles in the 200,000 - 300,000 yuan price range has increased from 60% in the same period last year to 63.3%, further squeezing the market space of traditional luxury entry-level cars.

BMW stated in its financial report that the competition for low - and mid - end models in the Chinese market is fierce. In the first half of the year, the deliveries of BMW's volume - selling models, the X3/X4 and i3/i4, decreased by 24.6% and 70.8% year-on-year respectively. Volume - selling models are usually the core for amortizing fixed costs. When the pillars decline, the profit structure of the Big Three will be further affected.

In the third quarter of this year, BMW's sales volume in China was 147,100 vehicles, a year-on-year decrease of 0.4%. Mercedes-Benz's vehicle sales in China in the third quarter were 125,100 vehicles, a year-on-year decrease of 27%.

In the mid - to large - sized luxury sedan "56E" market (BMW 5 Series, Audi A6L, Mercedes-Benz E-Class), there is also a trend of sacrificing price for volume. Among them, the price cut of the BMW 5 Series is the most significant, with the entry - level model dropping from 439,900 yuan to about 260,000 yuan, a decrease of 40%. The Audi A6L and Mercedes-Benz E-Class also have terminal discounts of about 140,000 and 150,000 yuan respectively.

The loss of price control in mid - to high - end models has had a direct impact on the financial performance of the Big Three. In the first half of 2025, Mercedes-Benz's net profit plummeted by 55.8% year-on-year, Audi's net profit decreased by 37.5%, and BMW's net profit also dropped by 29%.

So far, among the three market segments from low to high, only the ultra - luxury "78S" market (BMW 7 Series, Audi A8L, Mercedes-Benz S-Class) has not been fully shaken.

However, since the end of 2023, domestic new energy vehicles have started to target the territory of ultra - luxury cars. First, BYD launched the Yangwang U8 series, with the luxury version priced as high as 1.098 million yuan. Then, NIO released the executive flagship sedan ET9, directly targeting the 78S models. Last year, Huawei also joined the fray, releasing the most expensive executive - class flagship sedan in its Hongmeng Smart Mobility lineup, the Zunjie S800, which also targets the ultra - luxury sedans of the Big Three.

After the successive deliveries starting this year, the performance of several car companies has made the market re - evaluate the appeal of domestic new energy vehicles in the ultra - luxury car market.

In April, NIO's ET9 reported its first - month sales of 835 units since its launch, surpassing the 761 units of the BMW 7 Series and the 649 units of the Audi A8L. However, during this period, the Mercedes-Benz S-Class still ranked first with 1,673 units.

By September 16, the Zunjie S800 received more than 14,000 orders within 109 days after opening for pre - orders. This figure is close to the total sales of the Big Three's "78S" models in the first half of this year. Due to the better - than - expected market response, the relevant enterprise even mobilized office staff to support the production process.

However, the sales of the Zunjie are still in the pre - order stage. The actual sales depend on the subsequent delivery situation and the specific insurance registration volume. If there is no significant outflow of subsequent orders for the Zunjie S800, it means that the traditional dominant position of the German Big Three in the Chinese luxury car market will face a structural shake - up.

A

From absolute monopoly to a competitive landscape, the Chinese luxury car market has completed an epic restructuring of its market pattern in a decade.

The Chinese luxury car market has undergone structural changes during the "Golden Decade" from 2010 to 2020. The market size increased from about 300,000 vehicles in 2010 to 2.2 million vehicles in 2019, more than a six - fold increase in sales. Although the German Big Three have always remained in the top three in the luxury car market, their market share has fluctuated significantly. It declined from a peak of 94.03% in 2012 to 63% in 2020.

During this period, the absolute dominance of the German Big Three - Audi, BMW, and Mercedes-Benz - in the luxury car market has been gradually eroded by a diversified brand camp.

Initially, brands such as Cadillac, Volvo, and Jaguar Land Rover were successively localized in China, keeping pace with the Big Three and forming the second camp in the luxury car market. To regain lost ground, the Big Three launched more locally - produced models and entry - level models priced as low as 200,000 yuan, meeting the needs of some young consumers.

Later, as the foundation of the luxury car market further developed, a number of domestic new energy brands began to target the high - end market. Take NIO as an example. Its first - launched model was targeted at BMW and Mercedes-Benz. In the early days of its establishment, Li Auto's extended - range vehicles were priced in the 300,000 - 400,000 yuan range.

During this period, the domestic new energy vehicle market has developed from its initial stage to maturity. Not only have the market shares of brands such as Cadillac and Jaguar Land Rover been eroded, but the market share of the Big Three has also been significantly squeezed.

In 2024, the combined market share of the Big Three was only 35%. At the same time, Li Auto accounted for nearly 10% of the luxury car market, the market share of Wenjie rose to 7.6%, and NIO accounted for 40% of the pure - electric vehicle market above 300,000 yuan.

It can be said that in the three market segments from low to high, the market shares of entry - level and mid - level luxury models have been captured by domestic new energy vehicles, and only the foundation of the ultra - luxury "78S" market has not been conquered.

It's not that domestic new energy brands haven't tried hard. The "78S" models of the Big Three, with the highest entry thresholds, represent a more difficult battle to win.

In August 2018, the first mass - produced car of Qiantu Motors, the K50, was positioned as a sports electric super - car with a starting price of 700,000 yuan. Eventually, due to its high price, weak brand influence, and insufficient market education, its annual sales mostly remained in the double - digit range, and it finally entered the bankruptcy liquidation process.

In July 2019, HiPhi launched the HiPhi X with a starting price of 680,000 - 800,000 yuan, targeting the 78S series of the Big Three and the Porsche Taycan. Ding Lei, the founder, once said that HiPhi not only makes products but also creates works. As we all know, HiPhi was reorganized due to a broken capital chain, and Ding Lei was restricted from high - end consumption several times due to the company's debt problems.

Li Bin, from an Internet background, adopted a relatively conservative strategy when founding NIO. He first established a foothold in the 300,000 - 500,000 yuan price range and then aimed for higher - end markets.

Overall, Chinese brands have taken the lead in the pure - electric vehicle market above 300,000 yuan. In the first half of 2025, Chinese brands accounted for more than 80% of the new energy passenger vehicle market above 300,000 yuan.

B

If the period from 2010 to 2020 was the "Golden Decade" for the Chinese automotive industry to enter the luxury market with the trend of electrification, then the past five years have been a crucial stage for Chinese brands to launch a structural impact on the ultra - luxury segment.

During this period, several Chinese car companies have successively launched models with a starting price of over 700,000 yuan, directly targeting traditional ultra - luxury products such as the 78S models. From January to August this year, the sales of the Mercedes-Benz S - Class sedan were only 78 units, a year-on-year decline of 92.4%. At the same time, the BMW 7 Series and Audi A8 also experienced significant declines to varying degrees.

Domestic new energy vehicles have chosen different technological paths and brand strategies to enter the ultra - luxury market.

NIO has built a high - end brand image through user operations, battery - swapping systems, and service networks. The ET9 model, which was officially delivered in March 2025, achieved a delivery volume of 835 units in May, surpassing the BMW 7 Series and Audi A8L, and ranking second in the traditional executive luxury segment.

BYD is trying to shape a brand image of "technology is luxury" in the luxury market through technologies such as "e - Quad" and "Cloud - Chariot P". In April 2025, the Yangwang brand announced that its cumulative sales had exceeded 10,000 units, becoming the first domestic million - yuan - level car brand to achieve sales of over 10,000 units.

However, the market performance of Yangwang's models has been divided, and there is a trend of declining sales. The Yangwang U7, which started delivery in June this year, had a sales volume of 327 units in August, while the cumulative sales of the Yangwang U8 from January to August this year were 887 units, with an average monthly sales volume of about 111 units.

Huawei provides technical support and channel empowerment to partner car companies through its Hongmeng Smart Mobility model. The Zunjie S800, which it participated in creating, received more than 14,000 firm orders within 109 days after opening for pre - orders. In the first three weeks of September, the delivery volumes of the Zunjie S800 were 331 units, 360 units, and 485 units respectively, with the delivery volume increasing week by week and ranking first in the luxury sedan segment above 700,000 yuan.

Overall, the entry of domestic new energy vehicles into the ultra - luxury market has been a long and gradual process. Early products were more for brand image display, while in recent years, there has been substantial market penetration.

For example, the NIO EP9, an electric super - car launched in 2016 with a price of 1.2 million US dollars, was designed specifically for the racetrack and set a record on the Nürburgring Nordschleife. However, only six units were produced, mainly to demonstrate technological strength and attract investment. These products are usually priced extremely high and produced in very small quantities, aiming to send a signal to the market that "domestic technology can reach the top level".

More importantly, the domestic supply chain was immature at that time, and consumers had low trust in domestic high - end cars. The ultra - luxury market was still monopolized by traditional brands such as the Big Three, so these products were more symbolic than practical.

As the new energy industry chain has matured, domestic brands have started to launch mass - produced ultra - luxury models. Initially, they mainly entered niche markets to avoid direct competition with the Big Three, and the sales volume was limited. For example, the Yangwang U8, launched in 2023, features black technologies such as "floating on water" and "turning in place", targeting the million - yuan - level hardcore off - road market. After reaching a peak in sales, its sales declined later.

In the later stage, domestic ultra - luxury models have become more mature in product definition, technology integration, and user perception, and generally regard electrification and intelligence as the core of differentiated competition. Large - sized screens, advanced driving assistance systems, and fast charging or battery - swapping capabilities have become key factors in competing with traditional luxury brands. It is during this period that the monopoly position of the Big Three in the market above 700,000 yuan has really been shaken.

If judged solely from the single dimension of sales volume, only the Zunjie has succeeded in challenging the 78S market of the Big Three. However, it is always too one - sided to judge success or failure without considering the context. In addition to the competitiveness of domestic brands themselves, the successive market education efforts of other domestic brands in the ultra - luxury market have also laid the foundation for subsequent challengers.

When the market enters a relatively mature stage of development, new entrants do not need to conduct market education from scratch. Instead, they can build on the experience of predecessors, accurately meet the needs of Chinese users, and complete the transition from followers to leaders. This is also the key reason why domestic brands can divert customers from the market defended by the "78S" models.

C

In the era of fuel - powered vehicles, the Big Three built extremely high technological barriers based on their profound accumulation in engine, transmission, and chassis tuning. In the era of new energy vehicles, the rules of competition have been re - written. Through electrification and intelligence, domestic brands have quickly established advantages in areas such as the three - electric system, intelligent driving, and smart cockpits, "bypassing" the traditional core technological advantages of the Big Three.

This crisis has forced the Big Three to actively seek change. In the past two years, they have more actively promoted their transformation towards electrification and intelligence and opened up cooperation with Chinese new energy brands.

In 2018, Audi and Huawei publicly announced