Volkswagen, Mercedes-Benz, and BMW all reported disappointing H1 2026 results. Mercedes passenger car EBIT plummeted 66.2%, BMW's vehicle margin dropped to just 3.2%, and Audi's revenue fell 10.4%. Weak Chinese demand was the key factor behind the synchronized decline.
3851 day agoIn H1 2026, the German luxury trio (BBA) continued to underperform in the Chinese market. Hit by intensifying NEV competition, price wars, and declining brand premium power, BBA's sales and profits in China saw significant declines. Audi's depreciation rate surged over 10% from the beginning of the year, with some models seeing dealer quotes 100,000-150,000 yuan below MSRP. Mercedes and BMW face similar pressures of halved profits and declining sales. BBA is transforming from a "profit cash cow" to a "strategic burden," entering a full retrenchment cycle in China.
25633 days ago
Japanese eight major automakers reported a combined 48% year-over-year decline in operating profit for FY2026, the steepest drop since the 2009 financial crisis. Meanwhile, Chinese brands' global sales share surpassed 35%, with an absolute dominance in the NEV segment. The global automotive industry's power center is accelerating its shift from traditional manufacturing giants to China—a structural transformation that carries significant implications for car buyers in Central Asia and Russia.
53377 days ago
EX1000
