Sales of foreign luxury cars in China fell in 2025 as more buyers chose affordable domestic vehicles with modern technology and comfort features. The decline followed slower economic growth and a long property downturn, which made people more cautious about expensive purchases. Famous European brands such as BMW, Mercedes-Benz, and Porsche lost customers as Chinese carmakers gained attention. Analysts said the trend showed a clear change in buying habits rather than a temporary slowdown.

Government trade-in programs for electric and hybrid cars also played an important role. Many buyers selected entry-level models because discounts had a stronger effect on lower-priced vehicles. Chinese manufacturers increased efficient production and released new models more often, helping them stay competitive. As a result, foreign brands faced growing pressure in keeping sales steady. Experts noted that domestic companies benefited from practical pricing and faster product updates. At the same time, some wealthy buyers became hesitant to show luxury cars in public, which reduced demand further. Market researchers described the situation as uncertain, warning that foreign automakers must change strategies to remain competitive. Without better local adaptation, analysts said overseas brands could continue losing customers to domestic firms across both standard and premium segments.