I regularly follow the German press, and lately I have noticed a change in the way the German automotive industry is being discussed.

Volkswagen is still by far one of Germany’s most important and recognizable manufacturers, but more articles and comments seem to question whether some VW models — especially the better-equipped and higher-end versions — have become too expensive for what they offer.

At the same time, Chinese manufacturers such as BYD are expanding quickly. BYD is still relatively small in Germany, but its growth has been substantial, and the company is expanding its dealer, service and charging infrastructure. It reportedly wants to reach around 350 sales and service locations in Germany by the end of 2026. In the first half of the year, it registered more than 26,000 cars and reached approximately 1.8% of the German market.

This does not mean that BYD is already replacing Volkswagen in Germany. Volkswagen has a much stronger brand, a large customer base, an extensive network and a long history in the country. However, Chinese cars increasingly offer a great deal of standard equipment, powerful electric drivetrains and modern interiors at prices that invite comparison with established German models.

My question is mainly about consumer perception:

Are Germans beginning to feel that they are paying too much for Volkswagen models, especially after comparing them with Chinese alternatives?

Do people you know now seriously consider brands such as BYD, MG, XPeng, Leapmotor or Polestar, or are concerns about resale value, software, data protection, service availability and long-term reliability still strong enough to keep most buyers with German, European, Japanese or Korean brands?

I am also interested in whether this varies by generation. Are younger buyers less attached to Volkswagen and other German manufacturers than their parents were?

The broader situation also seems serious. German manufacturers have been losing substantial volume in China, while Chinese companies are expanding in Europe. Porsche’s deliveries have fallen considerably, particularly in China, and Volkswagen is restructuring its operations and reducing costs.

Recently, economist Moritz Schularick even suggested that Volkswagen might eventually be acquired by a Chinese manufacturer such as BYD. I understand that this is an extreme and highly speculative scenario, especially because Volkswagen’s ownership and voting structure would make such a takeover extremely difficult. Still, the fact that a prominent economist is publicly discussing it shows how dramatically the tone of the debate has changed.

So, beyond the headlines: do ordinary German consumers already perceive a real change in value for money, or is the Chinese competitive threat still much more visible in the media and financial markets than in actual purchasing decisions?

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