China
Still the world's largest auto market, China now increasingly sets the industry's cost, speed, and technology baseline—at home and in the markets its domestic brands are entering.
Big Questions
Connected Brand Big Questions
China and Localized Luxury
Can Mercedes remain aspirational in the market where local competitors—particularly EV/software brands—are eroding non-domestic premium advantage fastest?
Where it stands
China sales fell 28.3% in H1, roughly eight percentage points below the market. The CLA L has not resonated with Chinese buyers; shopper accounts pointed out deficiencies in technology, design, and space. The electric GLC L must show Mercedes can rebuild demand without buying share. The brand has priced it at a premium to competitors like the BMW iX3 L, but using pre-sale pricing—and having launched the first GLC L version below its pre-sale price—reads as the brand gauging whether the market perceives enough differentiation to pay it. If GLC L and follow-on models close the product gap and the early signals of brand moving up EV buyers’ priority list bear out, it should support Mercedes’ ability to charge a premium.
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China Competitiveness
Can BMW rebuild profitable volume in China while remaining recognizably BMW?
Where it stands
BMW Group’s combined BMW and MINI deliveries roughly tracked the China market’s first-half decline of about 20%, but the drop overwhelmed gains in other regions. The new China-specific iX3 L’s product and pricing combination seems to have earned buyers’ attention, but whether that interest converts into sales, whether the brand can then make the broader lineup resonate, and how much of BMW’s former volume it can profitably recover remain to be seen.
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Watch List
Mercedes-Benz Expands Solid-State Battery Testing as China Targets 2030 Scale
Mercedes-Benz AG and ProLogium Holding Inc. have signed a joint testing agreement, giving Mercedes-Benz priority access to test ProLogium’s latest Gen4 battery cells and further building on the companies’ nearly ten-year partnership in advancing next-generation battery technologies for mobility.
China’s State Council, summarizing the country’s new five-year battery-industry plan:
The plan envisions the initial large-scale application of all-solid-state batteries and a cycle life of 15,000 cycles for long-life lithium batteries by 2030.
Two concrete signs of movement toward broader industrialization.
XPENG Will Launch Its Flagship G9L Globally and Build It in Europe
XPENG launched its flagship SUV in China, will launch it globally in October, and will build it in Europe:
· XPENG announces that the G9L will be launched in 64 global markets, with its global launch set for October 12 at the Paris Motor Show.
· Built and designed for global users, the G9L will become the fourth XPENG model to be produced in Europe, marking four localized models within one year.
Maserati Reportedly Plans to Develop and Build New SUV and GT via Partnerships with Huawei and JAC
CarNewsChina, citing industry sources reported by Future Cars Daily:
This partnership represents a restructuring of technology, manufacturing, branding, and distribution:
· Huawei: Provides the Harmony Intelligent Mobility Alliance (HIMA) platform, including the intelligent cockpit, Qiankun ADS autonomous driving system, and electric drive technology.
· JAC Motors: Leverages its Maextro super factory to handle vehicle engineering and manufacturing.
· Maserati: Contributes its century-old design language and established global sales channels.
Under a “dual-brand” strategy, the vehicles will be sold under the Maextro brand in China, while retaining the iconic Maserati badge for international markets.
China Proposes Global Solid-State Battery Standard
On August 21, the International Electrotechnical Commission (IEC) approved a China-led proposal for an international standard covering solid-state traction batteries for electric road vehicles, according to reporting by Chinese state outlet Hunan Today. Titled Secondary lithium-ion cells for the propulsion of electric road vehicles – Application guide, test items, and conditions for solid-state batteries, the proposal is intended to establish common testing and application parameters.
The initiative follows China’s domestic standardisation work on automotive solid-state batteries.