The market for imported cars in China is on the verge of collapse, with prices falling continuously and the myth no longer existing. What went wrong?

The news that the EU has imposed tariffs on Chinese electric vehicles has been making headlines recently. The sales of "Chinese imported cars" in the EU are not actually high, but now they have become a flood. Interestingly, in the Chinese market, imported cars have a high-end halo. "Imported cars are high-end" was once a consensus among high-end users, and even "German-made Lavida" could become a selling point. However, in recent years, the performance of imported cars in China has been getting worse year by year.

According to the data from the China Association of Automobile Manufacturers, China's automobile imports in 2023 were 799,000 units, a year-on-year decrease of 8.9%. This figure has been declining since 2017, and the import volume in 2023 is already the lowest since 2011.

From January to April 2024, the automobile import volume was only 208,000 units, down 7.6% again, and the import value was only 83.28 billion yuan, down 17.1% year-on-year. It is obvious that Chinese consumers' interest in imported cars is declining sharply, and the moat of European and American high-end automobile brands is tending to be filled.

In fact, in recent years, imported cars have not had any major, persistent quality problems, and their brand image has not been damaged. But why are imported cars no longer so popular?

This is firstly because the technical strength of Chinese local manufacturers is constantly improving. The word "imported" is no longer synonymous with "high quality". In the past, the rich sought after imported cars because they had advantages in materials, workmanship and materials. China's automobile industry has become more and more mature in recent years, and the technical level has been continuously improved. The performance advantage of imported cars has basically disappeared. In this case, why should we spend a high price to buy imported cars?

Secondly, the Chinese automobile market itself is also undergoing drastic changes. Since the second half of 2018, China's passenger car sales have gradually declined, and imported cars have naturally followed the market into winter.

Despite this, imported cars have actually made a serious mistake, which is that they have not seized the dividends brought by the explosion of China's new energy vehicle market in the past three years.

In fact, the sales volume of domestic fuel vehicles has been declining in the past few years. It is the vigorous development of new energy vehicles that has brought new growth, allowing the Chinese market to maintain a sales volume of more than 20 million vehicles. However, among the imported cars we are familiar with, which one is a new energy vehicle?

In fact, in the fast-growing super market of new energy vehicles, imported cars have hardly gotten a share, so it is not surprising that sales continue to decline.

In April 2024, the penetration rate of new energy vehicles in China exceeded 50% for the first time. This is a historic moment, indicating that domestic consumers' recognition of new energy vehicles has reached a fairly high level. After having the demand to buy or replace cars, consumers are increasingly inclined to new energy vehicles, but there is hardly a single new energy vehicle that can compete among imported cars. Faced with this historic opportunity, they may not be able to grasp it even if they want to.

Of course, it is not only imported cars that have failed to seize this opportunity. Most joint ventures are in a mess in the field of new energy. But it should be noted that imported cars originally have obvious "emotional" factors and are more dependent on brand influence. After the rise of domestic cars, imported cars have been more seriously damaged.

In fact, anyone with a little common sense knows that many imported cars in recent years are "technology-based with a new shell". They are said to be completely new, but the biggest changes are in the appearance and interior. The engine and gearbox have not made any essential progress compared to five years ago. When there are no competitors, imported cars can continue to reap the harvest, but once a strong competitor appears, they will show signs of decline.

No longer leading in technology, no longer upgrading in functions, unable to provide users with a better car experience, and unable to seize the trend of new energy vehicles, the influence of imported cars continues to decline under the influence of various factors, and it is normal for them to fall into trouble in China. If nothing unexpected happens, the sales of imported cars will continue to decline in 2024.

At this very moment, the EU has dealt a heavy blow to its own imported cars: imposing tariffs on Chinese imported cars. If China also retaliates in kind, the market for imported cars in China will inevitably be further affected.

As things stand, if imported cars want to regain their former market position in China, they can only work hard on new energy and launch some new energy models that are acceptable to Chinese consumers. However, this possibility is not great. In their own domestic market, they have to rely on tariffs on Chinese electric vehicles for protection. How can they take the lead in the Chinese market?

In the next few years, we will not see imported cars such as the Mercedes-Benz G-Class disappear completely, but they will most likely no longer be a symbol of wealth and status, will no longer have the aura of mystery, and will no longer be eligible to sell cars at a premium.

After decades of glory, it’s time for imported cars in China to return to normal.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.