(Yicai) Oct. 10 -- German luxury carmakers BMW Group, Mercedes-Benz, and Porsche reported a third-quarter sales drop in China, facing their steepest sales declines in the Chinese market among all worldwide and continuing a downward trend from the first half of this year.

BMW's China sales fell 0.4 percent to 147,000 units in the three months ended Sept. 30 from a year earlier, despite its global figure jumping 8.8 percent, the Munich-based firm announced recently. Mercedes-Benz reported its sales in the country plunged 27 percent to 125,000 units, while Porsche said its sales tumbled 21 percent to 11,000 units.

Audi has not released its third-quarter figures yet, but its China sales fell 10 percent in the six months ended June 30 from a year ago, while BMW saw a 16 percent drop and Mercedes-Benz 14 percent in the period.

The mechanical performance and brand premium that luxury brands once relied on are no longer sufficient to sustain their competitiveness in the era of smart electric vehicles, industry insiders noted. Facing market competition, the prices of Mercedes-Benz, BMW, and Audi cars have dropped significantly, they pointed out.

Mercedes-Benz has faced particularly severe challenges in China this year, with its retail sales tumbling 40 percent to 27,000 units in July from the previous month and ending below 28,000 units for the first time in five years, according to data from auto industry platform Dongchedi. In addition, its mainstream models failed to sell more than 10,000 units.

The Chinese market is one of the most important worldwide for German luxury carmakers, but over the past two years, Chinese brands such as Seres' Aito and Li Auto have leveraged their advantages in intelligence and electrification to rapidly seize market share in the premium segment above CNY300,000 (USD42,000).

In the EV market, only BMW's electric offerings have gained significant traction, though their sales still lag behind those of Chinese manufacturers. Among ultra-luxury brands, Porsche was the first to launch a pure EV, but it has not yet developed models exclusive to China, while those it has launched failed to meet market expectations.

Porsche significantly adjusted its product strategy last month, shifting its focus back towards combustion and hybrid engines while slowing down its EV rollout. The development plan for an electric platform, originally slated for the 2030s, will be rescheduled and undergo a technological restructuring in coordination with other brands under Volkswagen Group.

Editor: Martin Kadiev