Audi's China slump deepens as local EV rivals surge ahead in 2025
Audi has faced a steady decline in China, losing ground to both BMW and Mercedes over the past five years. The brand's sales dropped again last year, falling 2.7% in 2025 to 617,500 vehicles—mostly locally produced. Despite this, Audi remains the top-selling German premium brand in the country, though competition from Chinese rivals like BYD and Nio continues to grow. For years, Audi has struggled to keep pace with BMW and Mercedes in the premium market. CEO Gernot Döllner admitted in a 2024 speech in Milan that the brand had 'lost its way.' The decline has been sharp, with BMW and Mercedes also seeing drops—BMW down 12.5% and Mercedes 19% in recent figures. All three have returned to 2017 sales levels, failing to match the rise of local electric vehicle makers.
Audi's long-standing slogan, Vorsprung durch Technik (Progress Through Technology), remains central to its strategy. This year, the company entered Formula 1 to reinforce its technical image and drive innovation. Meanwhile, plans are underway to invest around eight billion euros in German production sites by 2029.
New designs are also on the horizon. The Concept C, previewing Audi's future styling, will launch in 2027 with minimal changes. However, a platform developed with SAIC in Shanghai will stay exclusive to China, with no plans for a European release. Despite challenges, Marco Schubert, a company executive, insists Audi's product strategy is heading in the right direction. Audi's position in China remains under pressure, with sales slipping and local brands gaining strength. The company's focus on technology, Formula 1, and new models aims to reverse the trend. Yet, with BMW and Mercedes also facing declines, the battle for premium dominance in China is far from over.
