Asian luxury feels the automotive industry paradigm

German cars have been historically considered the best in the world. Their precision engineering, quality and durability control made BMW, Mercedes-Benz, Porsche and Audi become symbols of universal status and their products highly appreciated by those who could pay them, regardless of whether they were Americans, Saudís or Chinese.

However, these brands presented all reductions around one third of their benefit last year because, precisely, the latter are not buying their cars so much. “The perception of our brand has changed in China.” Thus, the CEO of Porsche, Oliver Blume, was shown in the presentation of the financial results of 2024. His brand sold 28.2% less in the largest market on the planet, a proportion similar to that of its compatriots.

In the last two decades, German manufacturers have realized the importance of focusing on China for the volumes it handles – in 2024 more than 31 million units were sold – but also because there is more growth margin than in the US.

This has been seen with the most technological and daring designs – the most obvious example is that of BMW and its front – and the arrival of models with the long battle. In Asia in general, and China in particular, luxuries are time and space, so those who get purchasing power quickly opt for hiring a driver and avoid having to park.

The automotive industry of the Asian country has hit great qualitative leaps in the 30 years since Western manufacturers began to install their factories there and the Germans have done much to improve the quality standards of local manufacturers. Now, more than half of the cars sold in China come from their own brands, which supply all market segments.

The advantage that Chinese manufacturers play is that they do not have the need to expand to other markets – what does not mean that byd, Geely or Chery have chosen to do so – since there is sufficient demand in their own country. This has led to luxury brands designed by Chinese engineers for the tastes of their countrymen. Here are the large electric SUVs and minivans whose interior looks like the first class cabin of a plane to travel comfortably.

All of these will be present in the 21st edition of the Shanghai Auto Hall, one of the most important in the world. This started yesterday in a framework of international commercial tensions – EE. UU. It has imposed 145% tariffs on Chinese and Brussels producer, up to 45.3% to electric cars from the country – and, simply in the first quarter of the year their effects have already been noticed. For example, Tesla, who has a factory in China, presented a 22% setback in her registration. The company has suspended the orders of its Model S and Model X for Beijing’s response to Washington’s rates.

In total, it is estimated that there will be about 160 brands in Shanghai, both local and western. Of these, however, only 10% have a market share of more than 2% and many of them have not yet reached the positive numbers. Exceptions to this are Byd, Geely, the Chery group, Li Auto and Leapmotor, which has a Stellantis participation.

Spain tends bridges

Every year that passes, the Chinese vehicle is gaining adherents and Spain is no exception. In surveys, their brands are increasingly recognizable, and some, such as MG, Byd, Ebro and Omoda already know one in four Spaniards. However, others that are marketed in our country are not yet as present as Xpeng, DFSK, Dongfeng or Voyah, around 9%. These results are extracted from a Carwow study, which points out that more than half (53%) of buyers who are considering getting a car in next year do not rule out that this is Chinese. In addition, the study also shows that “quality concerns” have been reduced considerably, from 37% of last year to 23% in 2025.

The employer of official dealers, Faconauto, also went to Shanghai to meet with her Chinese counterpart (each). A year after signing its bilateral cooperation agreement, the Spanish organization, which includes the networks of several brands of the Asian country, pointed out the importance of generating confidence in stable distributors and communication channels, “especially relevant in the current commercial context.” In this area, its president, Marta Blázquez, said that the action plan of the European Automobile Industry presented by Brussels last March, “should not be interpreted as a barrier, but as an opportunity for cooperation and assess the role that China can play in the value chain.”