BBA is approaching the loss threshold.

Luxury cars were once one of the most profitable segments in the automotive industry. The three leading luxury brandsMercedes-Benz, BMW, and Audienjoy a strong brand reputation and can achieve both scale and premium pricing in the global market, with profits from selling a single vehicle far surpassing those of mainstream automotive brands. The latest round of semi-annual reports indicates that the core automotive businesses of these three companies are also on the brink of losses. In the first half of this year, global sales volumes and revenue of Mercedes-Benz, BMW, and Audi have declined simultaneously, with revenue reaching a new low since 2022 and vehicle sales hitting a record low for 2023. In terms of profits, Mercedes-Benz and BMW have dropped to their lowest point since 2021, while Audi is at a six-year low. Weak performance in the Chinese market has become a key reason for the synchronized decline in the performance of the three companies. Among them, Mercedes-Benz had the highest revenue in the first half of the year, reaching 63.66 billion, but this represents a 4.1% decrease compared to the same period last year, marking a third consecutive year of decline. During the same period, Mercedes-Benz's earnings before interest and taxes (EBIT) amounted to 3.45 billion, down from 3.56 billion in the same period last year, reflecting a drop of 67.1% from the peak period in 2023.