Jul. 29 at 8:16 PM
Mercedes-Benz CEO Ola Källenius warned that the intense price war in China’s auto market is likely to persist for years as domestic manufacturers aggressively target the premium segment. He said Chinese brands are investing heavily to compete directly with luxury models such as the Mercedes S-Class and G-Wagon, calling the heightened competition a “new reality” for the industry.
Chinese automakers led by BYD have gained significant market share in electric vehicles through rapid product launches and aggressive pricing, putting pressure on foreign brands including Mercedes, Porsche, BMW, and Audi. The challenges have been compounded by a slowdown in China’s luxury market, driven by the country’s ongoing property-sector weakness.
Despite the difficult environment, Källenius said Mercedes continues to dominate the ultra-luxury segment, including its high-performance AMG lineup. The company recently unveiled the new GLA compact SUV, available with multiple powertrain options.
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