Luxury car sales plummet in China due to economic slowdown, impacting European automakers.

Decline in Luxury Car Demand: Chinese consumers are increasingly favoring affordable domestic brands over foreign luxury cars, leading to a decline in sales for European manufacturers like Porsche and BMW, as economic conditions worsen and public displays of wealth become less common.

Impact of Government Subsidies: A government trade-in subsidy for electric and hybrid vehicles has encouraged buyers to opt for cheaper, entry-level cars, predominantly from Chinese manufacturers, further diminishing the market share of premium foreign brands.

Rise of Chinese Automakers: Chinese car manufacturers, particularly BYD, are gaining market share by offering competitive and innovative electric vehicles at lower prices, which has contributed to a significant increase in their share of passenger car sales.

Used Luxury Car Market Struggles: The luxury used car market is facing challenges, with significant price drops for premium vehicles due to reduced consumer interest and economic uncertainty, affecting brands like Porsche, Mercedes-Benz, and Bentley.