European premium brands face crisis as China sales collapse

European premium automakers are facing a sharp contraction in China as sales weaken amid intense local competition in the electrified segment. BMW, Volvo, Porsche, Jaguar Land Rover (JLR) and Mercedes-Benz each reported steep declines ranging from 24% to 37% in the second quarter of this year, according to company figures. The wider Volkswagen Group also saw a major downturn, with sales down 37%, though it has not yet broken out results for Audi separately. The figures point to pressure across multiple brands rather than a single-model issue, with the electrification battle in China cited as the key driver of the erosion.