Western Car Giants Risk Being Left Behind By China's Ev Industry

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western car giants risk being left behind by chinas ev industry

But her views on German cars have soured as Chinese consumers increasingly favour tech refinement over traditional selling points like horsepower and handling. The software systems in the Taycan, which costs well over 100 000, were "terrible", the 36-year-old mother of three said. It was "just an electrified Porsche - and that's it".

Her assessment isn't isolated. As China moves away from combustion-engine cars, Volkswagen, Mercedes-Benz Group and BMW are struggling to offer electric vehicles that appeal to customers in their largest and most lucrative market, putting 35-billion of investment on the line.

The latest warning signs came last week, when all three German manufacturers reported slumping third-quarter sales in China. BMW posted its steepest sales drop there in more than four years, a 30 plunge, and Mercedes' deliveries declined 13 amid poor demand for its priciest cars, including S-Class and Maybach limousines.

Porsche's sales in China tumbled 19 to its worst third-quarter performance in a decade as global demand for the Taycan nearly halved. Volkswagen - the parent of Porsche and Audi - reported a 15 decline. "The competitive situation in China is particularly intense," said Marco Schubert, who oversees sales for VW.

The next challenge is already on display at this week's Paris auto show, where Chinese manufacturers are stepping up their efforts to take market share in Europe. Companies including BYD and Xpeng will showcase their latest technology at the biggest European car event this year.