German firms face steep revenue decline in China after years of dominance
German companies are earning less from China than they did a few years ago. Over four years, the share of total sales generated there by 27 major listed corporations has dropped by nearly one-fifth. The decline is sharpest among automakers, where fierce competition and shrinking margins have forced big changes in strategy.
In 2020, China accounted for 18.6% of total revenue for Germany's top firms. By 2024, that figure had fallen to 14.9%. The drop has hit automakers hardest, with Volkswagen's sales in the country slipping from over 42% of its global total in 2020 to just 30% in 2025.
Facing pressure from local rivals like BYD and Geely, German carmakers have had to adapt. Volkswagen, BMW, and Mercedes-Benz have deepened partnerships with Chinese firms, such as VW's joint ventures with SAIC and FAW. They've also slashed prices—offering discounts of up to 30% in 2024—and ramped up local production of electric vehicles. BMW's *Neue Klasse* platform, for example, will start rolling out EVs in Shenyang from 2025. Meanwhile, premium models like the Mercedes EQE and VW ID. series are now being built in China to cut costs. The trend isn't limited to cars. Retail and industrial giants have also seen their China revenue shrink. Adidas's share fell from 23.6% to 14.8% over five years. Siemens, once heavily reliant on the Chinese market, saw its revenue share drop from 13.2% to 9.1%. Even Siemens Energy, a fast-growing power plant builder, experienced a decline—its China revenue share fell from 6.1% to 3.7%.
The shift reflects broader challenges in China, where overcapacity and intense competition have squeezed profits. German firms are now adjusting their operations, from production to pricing, to hold their ground. But the numbers show their reliance on the market is no longer what it once was.
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