The revolution is not yet successful, comrades must continue to strive

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In August this year, BMW sold only 34,800 vehicles in China, a 42% decrease from the same period last year.

Meanwhile, another piece of information is also quite interesting.

In the third week of September, Li Auto sold 12,000 vehicles in a single week, surpassing the three German luxury brands of Mercedes-Benz, BMW, and Audi for the first time.

This data comparison is right in front of us, and it inevitably sets our minds racing.

Is BBA on the decline?

Have China's luxury brands finally risen to prominence?

Has the value of China's luxury cars surpassed that of German luxury cars?

From the launch of the Li ONE in 2019 to surpassing BBA in sales for the first time in 2024, what has the young Li Auto done?

At the same time, if we look at the entire camp of China's independent high-end brands, what market achievements have the emerging independent luxury brands achieved?

In the future, how will the landscape of the global luxury and high-end automobile market change?

Li Auto is merely helping BBA step out of their comfort zones

The automotive industry is undergoing transformation.

So, who is initiating and driving this transformation? Who is playing a decisive role?

Have you ever thought about these questions?

Let's rewind to the 1970s and 1980s.

At that time, the global automotive market was also undergoing a transformation, from classic to modern.

The status of Dodge, Lincoln, and Cadillac was gradually replaced by Mercedes-Benz, BMW, and Audi. The reason for this replacement was simple: the latter created a more modern trend, replacing classic cars with new engine and chassis technologies.

Returning to today, the transformation of the automotive market continues.

But this time, it is the once-pioneering players who are being revolutionized.

The wave of electrification has become an irreversible trend.

Traditional luxury powerhouses like Mercedes-Benz, BMW, and Audi are still stuck in their comfort zones.

Judging from market trends alone, which of these three traditional luxury automakers has truly gained market scale? Which of their new energy luxury products has actually achieved profitability?

In August, Mercedes-Benz sold 760 units of the EQB, its pillar of new energy vehicle sales; BMW sold 2,144 units of the i3; and Audi sold only 1,400 units of the Q4 e-tron.

Compared to their respective gasoline-powered vehicles, the sales figures in their new energy sectors barely make a dent and can be described as "negligible." Meanwhile, judging from their sales composition, BBA's luxury brands still rely primarily on gasoline-powered vehicles for sales.

In other words, these three German luxury brands have not left their comfort zones.

However, China's "Li Autos" have helped these luxury brands step out of their comfort zones.

The vast majority of Chinese automakers have recognized the importance of new energy vehicles. Relying on this awareness, the new energy vehicle market continues to flourish.

Just as Li Auto, whose sales surpassed BBA for the first time, has gradually restored the experience contemporary consumers desire at the product level.

For example, early users of luxury mid-sized SUVs like the Q5L, GLC, and X3 often complained that their traditional luxury vehicles were not big enough, not fuel-efficient enough, not powerful enough, and not luxurious enough inside. Starting with the Li ONE, Li Auto has gradually addressed these pain points. Today, from the Li L6 to the Li L9, they have become excellent alternatives to traditional luxury SUVs in the 300,000 to 400,000 yuan price range.

Since BBA does not seem inclined to make sweeping changes, Li Auto, starting from scratch, is helping them do so.

This story beautifully illustrates the profound philosophy of "a fearless calf": since Chinese brands have never tasted the sweetness of being luxury brands, they might as well take a leap of faith and stir up the market.

Unexpectedly, Chinese automakers, the market environment, and consumers who are open to new things have all delivered.

And just like that, it happened!

The high-end logic of Chinese automakers is nothing more than solving pain points

Many times, when we evaluate foreign luxury cars, we often have the impression that "established luxury automakers are arrogant." Applying this conceptual impression to the product dimension, we can clearly perceive it.

For example, in product design and configuration planning, many foreign joint venture brands adopt an "engineer's mindset" when building cars. They use designs they believe are good. For instance, when BMW updates its new generation of models, whether it's the flagship i7 or the executive-class i5, their design styles deviate somewhat from mainstream aesthetics or are quite forward-thinking.

In terms of planning for new technologies, these brands are generally conservative. Mercedes-Benz's high-level autonomous driving technology, developed in partnership with NVIDIA, has remained limited to the experimental stage for years and has not been widely deployed. In contrast, domestic markets have seen the emergence of competitive solutions like Huawei's Kunpeng ADS 3.0 autonomous driving technology and Li Auto's end-to-end autonomous driving technology.

Let's focus on how foreign automakers can compete with Chinese automakers in terms of smart technology alone – and that's not even counting 800V or even 900V high-voltage platforms, silicon carbide motors, advanced electronic and electrical architectures, and other technologies. If we consider these as well, Chinese automakers are clearly ahead from a technological standpoint.

However, in Electric Drive's view, the upward development of Chinese brands is not solely determined by technological advancement.

What truly matters is the logic of car manufacturing.

Before Li Auto emerged, there was truly no high-end SUV suitable for family use on the market. From the Toyota Prado to the Lexus GX460, they specialize in off-road driving and do not demonstrate family-oriented cabin design. Meanwhile, models like the BMW X3 and Mercedes-Benz GLC either have space limitations or insufficient configurations, making it difficult for them to fully showcase their product capabilities.

Li Auto is different. It can be said to be the first company to focus on the needs and usage scenarios of high-end family users.

Extended range, four-wheel drive, and high performance meet the needs of diverse driving scenarios; six or five large seats, plus refrigerators, sofas, and large TVs, these product capabilities are also based on core family needs, providing consumers with a richer experience.

Based on this, we can draw the following conclusion:

In fact, market demand is always complex and diverse. In the early days, foreign luxury brands like BBA sold well because consumers simply didn't have many other options.

When Chinese automakers explored high-end markets, they considered more layers of users' real needs.

These few words may sound easy, but putting them into practice is quite challenging. Take the large SUV WENJIE M9, for example, which aims to capture the market share of BMW X7 and Mercedes-Benz GLS. In this regard, WENJIE and Huawei are constantly trying.

Leveraging Huawei's intelligent technology system, WENJIE M9 breaks the stereotype that "large SUVs cannot be used for office work or offer limited entertainment options in the cabin." At the same time, its diverse lineup of six-seat and five-seat versions provides comprehensive solutions for individual and private users.

Therefore, when many foreign brands repeatedly mention the "user mindset," we believe that they do not demonstrate the same level of user care as domestic brands.

It is precisely because domestic brands adopt a "user mindset" in car manufacturing, combined with continuous breakthroughs in technology, that Chinese manufacturers like Li Auto have opportunities for upward development. Describing this as a convergence of "right timing, favorable conditions, and harmony" is entirely appropriate.

How will the winds of the luxury market change in the future?

In fact, I have always questioned the definition of "luxury brand." Is it truly a global consensus to consider BBA as the top three global luxury brands?

For example, are entry-level models like the Audi A3 and BMW 1 Series front-wheel-drive sedans really luxury cars?

After all, their prices, performance, and quality suggest that they are merely slightly more refined compact cars for consumers. Furthermore, in many overseas regions, models like Mercedes-Benz and Audi are often used as taxis.

So, who defines their distinctive "luxury attributes"?

Electric Drive believes that decades of consistent marketing are largely responsible. Such marketing strategies have influenced the mindset of global consumers. In the Eagles' song "Hotel California," the beauty and elegance of a woman are described as follows: "She's got a lot of pretty, pretty boys, that she calls friends / But she's never gonna stop lovin' you / She's got a Mercedes-Benz / She's got a lot of pretty, pretty boys that she calls friends."

Once a brand's moat is established, it becomes difficult to break the monopoly it creates.

Of course, Chinese automakers have broken this monopoly solely through product strength, which is something we can be proud of.

However, we must still address a practical issue: "Chinese high-end" is more evident in the dimension of individual products rather than the overall brand. Take the WENJIE brand as an example. The flagship WENJIE M9 has received high market recognition and often tops sales charts in the over 500,000 yuan price range. However, the mainstream WENJIE M5 does not enjoy the same level of market enthusiasm.

This issue also reflects that consumers pay more attention to individual high-end new energy vehicles from China rather than the entire brand.

In my opinion, this shift in market trends is actually a positive development.

Firstly, in the more rational new energy era of consumer thinking, consumers are no longer solely focused on brand logos.

They are more pragmatic in their focus on product capabilities and performance. This, in turn, will force automakers to increase investment in research and development and technology, truly embodying the new automaking mindset of "technology is king, quality is king" in the new energy era.

Secondly, we can see that the boundary between luxury and non-luxury brands has become increasingly blurred.

Chinese new energy vehicle brands like WENJIE, Li Auto, IM Motors, and XPeng offer both entry-level "people's cars" and high-end "flagship cars."

Moreover, many of these brands' new energy vehicles priced at around 100,000 to 200,000 yuan are no less capable in terms of technology, configuration, design, and craftsmanship than German BBA models, and in some cases, are even superior. For example, the Xiaomi SU7 offers a driving experience, technological experience, and cabin experience that, in my opinion, are superior to that of the BMW i3. At this point, how do we define luxury brands?

I believe that in the future era of significant new energy development, luxury brands will not be narrowly defined, and there may not even be any true "luxury brands" in the world. Instead, there will only be "high-end cars."

In fact, such a change is fair to most new energy automakers.

They can focus less on branding and more on technological and product research and development. Just like BYD, by seizing this opportunity and devoting itself to technology, it has transformed from an obscure Chinese brand into a global new energy leader, launching high-end products like the BYD Atto 3 and Tang EV.

Therefore, in the future, the concept of "luxury brands" in the new energy vehicle industry will become increasingly blurred and may even differentiate into "technology brands," "user brands," and "entertainment brands." Such brand precipitation will be a natural process. In the future, it is highly likely that a new landscape of "WYJ" (WEY, Li Auto, WENJIE) and "MXZ" (Xiaomi, XPeng, IM Motors) will emerge.

Final Thoughts:

Twenty years ago, we watched helplessly as the German BBA luxury brands dominated China's high-end automotive market.

At that time, Chinese automakers looked on with a mix of envy and resentment.

But just twenty years later, the dynamics of the high-end automotive market have shifted. Chinese new energy vehicle brands have capitalized on the winds of change, creating numerous outstanding products that can compete with BBA. At this point, Electric Drive believes that China's high-end automotive industry has made a strong start. In the future, as long as we adhere to the principles of long-term and sustainable operations in this industry, the right to speak and set standards will remain firmly in our hands. It is gratifying to see milestones like Li Auto surpassing BBA in sales and WENJIE M9 consistently topping the luxury car sales charts above 500,000 yuan!