European Luxury Car Brands Battered by EV Transition

Meanwhile, last year Volkswagen also took a similar step. The plan is to lay off more than 35,000 workers in Germany by 2030.

For your information, various other brands such as Tesla, Ford, and Mercedes-Benz are also experiencing pressure from the onslaught of Chinese electric cars.

In the latest research results from the IMD FRI (Future Readiness Indicator) Automotive 2025, Tesla's position as the most innovative automotive manufacturer since 2019 has been displaced by BYD.

The brand led by Elon Musk is surrounded by other Chinese brands, namely Li Auto and Geely. Other entities are considered less responsive amidst the turmoil in the automotive market.

Photo : KatadataOTO

“VW and Stellantis are not agile enough to anticipate changes in the global automotive industry,” said Howard Yu, Professor of Management and Innovation and Director of the IMD Center for Future Readiness, in his official statement.

The factor that makes Chinese brands superior is their aggressive technology expansion and the expansion of their factory networks, spread across global countries.

Then, their car development approach tends to be different from other brands. Because it is focused on software and digital integration.

This makes things easier for consumers in many ways. For example, some Chinese cars do not require customers to bring their vehicles to the workshop if a component needs to be updated.

Because it can be done OTA, or Over The Air. The manufacturer simply performs a software update, for things like suspension settings and security features.

In Indonesia, Chinese brands often introduce innovations to attract consumers. The latest is the introduction of a low-priced PHEV (Plug-in Hybrid Electric Vehicle).

It should be noted that before the Tiggo 8 CSH (Chery Super Hybrid) or Chery's PHEV version, PHEVs in Indonesia were sold starting from Rp 1 billion and up.

Meanwhile, Chery brought their PHEV with a price of 499 million for the first 1,000 buyers, from the normal price of Rp 519 million.

Another well-known brand like BYD (Build Your Dreams), which is called a PHEV pioneer, also has the opportunity to introduce their DM-i technology in the future.

Photo : Denza

BYD's luxury sub-brand, Denza is said to have successfully shaken up the market by introducing the D9, a luxury electric-powered MPV (Multi Purpose Vehicle) priced at around Rp 950 million.

For comparison, competitors of the Denza D9 like the Toyota Alphard and Vellfire HEV (Hybrid Electric Vehicle) are sold for Rp 1.7 billion and up.

This certainly needs to be a concern for many other manufacturers if they want to compete against the onslaught of Chinese products.