When discussing luxury automobiles, conventional luxury brands like BBA (BMW, Benz, Audi) are universally recognized, whereas super-luxury brands encompass Porsche, Maybach, and Ferrari.

Historically, affluent Chinese individuals favored luxury cars such as BBA, Porsche, Maybach, and Ferrari, perceiving domestic brands as lower-tier alternatives.

Consequently, these luxury car brands consistently viewed China as a vital market, reaping substantial profits from it.

However, the current situation indicates that these luxury cars are struggling in China, regardless of whether they are super-luxury brands like Porsche and Ferrari or more mainstream ones like BBA.

Let's start with Porsche, once an exclusive marque for the wealthy. In 2024, its sales totaled 310,718 units, marking a 3% year-on-year decline.

It's crucial to note that this global 3% drop is primarily due to a steep 28% sales decline in the Chinese market. Without such a significant decline in China, Porsche would not have experienced an overall decrease.

Analyzing Porsche's regional delivery figures, all regions except China have witnessed growth, with China standing as the sole exception, experiencing a 28% decline.

Moreover, China has traditionally been Porsche's largest market, accounting for over 20% of its sales. Now, it has slipped to 18.3%, falling from the top spot to the third largest globally. This underscores a waning interest in Porsche among Chinese consumers.

Ferrari faces a similar predicament.

Once enjoying robust sales in China with delivery times stretching to one or even several years, Ferrari has seen sales decline since 2023. In 2024, annual sales across all four quarters fell by 22%.

Mirroring Porsche's situation, Ferrari sales are on the rise in all regions except China, where they have plummeted by a significant 22%.

Why are brands like Porsche and Ferrari no longer thriving in China? It's largely attributed to the rapid ascendancy of Chinese automakers in the new energy vehicle era.

In the fuel vehicle era, domestic brands held little sway in the luxury car market. However, with the rise of Chinese automakers in the new energy sector, this dynamic is quietly shifting.

Domestic new energy vehicles now surpass these brands in intelligence and comfort. Beyond their logos, what unique attributes do these brands offer?

Furthermore, as cultural confidence grows, young people increasingly support domestic brands, abandoning blind adoration for foreign labels. Hence, it's foreseeable that sales of these foreign luxury brands will continue to decline in China.