German automakers, once dominant in China's high-performance car market, are now struggling against local competitors such as Xiaomi that offer electric and intelligent vehicles at lower prices. The Xiaomi SU7, which resembles the Porsche Taycan, provides luxury features like AI assistance while being priced significantly lower. Consequently, established brands like Porsche have reported drastic drops in sales in China, indicating a shift in consumer preferences towards tech-savvy, affordable vehicles. This trend highlights the challenges faced by traditional automakers in adapting to rapidly evolving market expectations and technology.
As a result, the German automakers that for decades commanded China's premium car market are now seeing their sales dwindle, while Xiaomi, a leading Chinese smartphone manufacturer, last year sold more than 100,000 models of the SU7.
The cherry on top: It sells for roughly half the price of a Taycan. Among the hardest hit has been Porsche, which reported last month that its deliveries in China plunged 28 percent in 2024.
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