‘Mercedes, BMW, and Audi are scared...’: Investment banker on Chinese EV disruption

The global luxury car market is undergoing a dramatic shift, with Chinese automakers rapidly emerging as strong challengers to established European brands. Investment banker Sarthak Ahuja, in a recent LinkedIn post, argued that companies such as Mercedes, BMW, Audi, and Porsche are “facing the heat” as Chinese firms bring high-tech, competitively priced electric vehicles (EVs) into the premium and ultra-luxury space.

Citing the example of Huawei, better known globally for its smartphones and telecom equipment, Ahuja highlighted the company’s new luxury EV—the Maextro S800. Priced at around $120,000 (approximately ₹1 crore), the vehicle rivals the Mercedes Maybach S-Class in features while costing less than a quarter of its price. The Maextro S800 boasts a range of over 700 kilometres and ultra-fast charging that can power the car in just 12 minutes, faster than many smartphones.

Within three months of its launch, Huawei reportedly secured 12,000 orders, translating into revenue of $1.5 billion. By contrast, European luxury carmakers have been witnessing a slowdown in China—one of their most important markets. In 2024, Mercedes, BMW, and Audi sales declined between 7–13%, while Porsche’s sales dropped by over 25%.

“Mercedes, BMW, and Audi are now scared of an even bigger player, which is walking in to eat away their entire market share… and it’s not Rolls Royce or Porsche. It’s Huawei,” Ahuja wrote. He added that in comparison videos, the Maextro S800 is being showcased against the Maybach S-Class, offering similar or better features at a fraction of the price.

Chinese luxury EVs are rapidly positioning themselves as formidable rivals to established global brands, combining advanced technology, premium features, and aggressive pricing. Backed by strong government support and control over critical supply chains, these automakers enjoy a clear competitive edge. However, questions around long-term reliability and global accessibility remain, even as companies like BYD gain international recognition for both innovation and sales scale.

Ahuja also pointed out that Chinese automakers are expanding their global footprint at a rapid pace. Currently, Chinese cars hold 21% of the global market share, and projections suggest this figure could cross 33% within the next five years. Beyond Huawei, brands such as Hongqi, NIO, Zeekr, and XPeng are already penetrating European markets and positioning themselves as next-generation luxury leaders.

According to Ahuja, the very definition of luxury is being rewritten. Traditionally, luxury was associated with exclusivity and high prices. Today, he argued, consumers increasingly equate luxury with advanced technology, superior comfort, affordability, and overall experience. “A car that is more advanced, more practical, and cheaper can now be seen as more luxurious than a traditional high-priced brand,” he said.

The message is clear: Chinese EV makers are redefining what luxury means in the automotive world, forcing Europe’s traditional giants to rethink their strategies or risk losing ground in one of the industry’s most profitable segments.