BMW and Porsche Have Just Lost China's Luxury Market to a $100,000 New Entrant | Carscoops

      Brand loyalty has diminished as Chinese consumers rush to purchase this domestically-produced luxury sedan.

      Eight hours ago

      By Thanos Pappas

      The Maextro S800 is currently the top-selling vehicle in China priced above $100,000. It undercuts Mercedes while delivering luxury comparable to Maybach. This trend signifies a growing interest in Chinese premium car brands.

      When Huawei collaborated with JAC to introduce the Maextro S800, many were skeptical of the brand's ambition to compete with Maybach and Rolls-Royce. It seemed ambitious for a new Chinese brand to aim for the highest standard of automotive luxury.

      One year later, Maextro is proving the doubters wrong. Their flagship sedan has become China's best-selling car in the over $100,000 category.

      Previously, foreign automakers had a dominant position in China’s luxury car market, but that control is diminishing. Domestic buyers are increasingly favoring local brands, even at the upper end of the market—a shift that seemed unlikely just a few years ago.

      European Brands Are No Longer at the Forefront

      According to Bloomberg, the Maextro S800 outperformed both the Porsche Panamera and BMW 7-Series combined in November, and it had already claimed the top position in September. Additionally, the S800 surpassed the Mercedes S-Class and even the Maybach variant, possibly due to its similarities to a blend of Maybach and Rolls-Royce.

      Weibo user Chu Xiaomin highlights that Maextro received 18,000 orders for the S800 within just 175 days of its launch. The company reports current monthly sales exceeding 2,000 units and plans to increase production to 4,000 per month.

      What Contributed to Maextro’s Success?

      A significant factor in the appeal of the S800 is its price. Measuring 215.7 inches (5,480 mm) in length, this is a genuine full-size luxury sedan, priced between ¥708,000 and ¥1,020,000 (approximately $100,600 to $144,900 at current exchange rates).

      For comparison, the starting price for the BMW 7-Series is ¥919,000 ($130,000), the Porsche Panamera begins at ¥1.1 million ($156,200), and the Mercedes S-Class starts at ¥1.47 million ($208,800). And a Rolls-Royce Phantom? That comes in at ¥8.47 million ($1.2 million).

      However, competitive pricing alone does not account for its appeal. The Maextro S800 is packed with features, including a triple-screen dashboard, a 40-inch projector in the rear to create a private cinema, automatic doors, crystal-effect buttons, and a starlit ceiling reminiscent of Rolls-Royce.

      The interior is crafted from wood and leather, and it incorporates Huawei's advanced driver-assistance system (ADAS).

      In an interview with CCTV, Richard Yu, Chairman of Huawei’s Consumer Business Group, remarked: “The Maextro S800 is the first instance where a Chinese brand has secured a position in the 1 million yuan ultra-luxury segment. We are in the era of intelligence and electrification, and we are leading with smarter technologies and innovation.”

      German Brands Are Losing Their Grip

      Bloomberg notes that BMW, Mercedes, and Audi are steadily losing market share in China as they struggle to compete with local brands in terms of pricing and technology features. Huawei's challenge now is to sustain this momentum rather than just generating initial interest.

      At the same time, rival brand YangWang, part of the Chinese giant BYD, is also entering the six-figure market with models like the U8 SUV, which starts at about $150,000, along with the YangWang U7 sedan, which is slightly lower-priced at between ¥628,000 and ¥708,000 ($89,200 to $100,600).

      Sources: Huawei, Bloomberg