The 91st Paris Motor Show opened at the Porte de Versailles exhibition center on October 12, 2026, with Mercedes-Benz framing its presence as a key moment in its 140th anniversary celebrations. But the narrative backdrop was starkly different from any previous edition: of the 59 vehicle exhibitors, 22 were Chinese brands—37.3% of the total—outnumbering the combined French (10) and German (7) contingents by five. BMW officially skipped the show, and Japanese brands were collectively absent.
Across the halls, Chinese brands showcased their electric and intelligent vehicle ambitions. In Hall 6, BYD debuted the Shark plug-in hybrid pickup globally, Xpeng displayed the G9L alongside a flying car and humanoid robot, and Lotus showed its electric supercar. The show's first-ever 'Smart Driving Lab' allowed the public to ride in L2+ autonomous vehicles on Paris roads—but only two companies participated: Tesla with six Model 3s equipped with FSD, and Xpeng with two L03s running NGP. According to Xpeng's vice president Yu Tao, the organizers initially invited all exhibitors, but only Tesla and Xpeng accepted the challenge of demonstrating their systems in real Paris traffic. European media noted the irony: in the heart of Europe's auto industry, no German or European manufacturer was willing to show its technology.
Mercedes-Benz's strategic pivot
To understand this shift, one must look back to Mercedes-Benz's decision at the 2026 Beijing auto show. Board member Matthias Geisen revealed that the company would move toward unified platforms for its electric and combustion models, acknowledging that its earlier EV transition forecasts were too optimistic. The MMA modular platform already supports both pure electric and plug-in hybrid powertrains, and the strategy aims to cut costs and increase flexibility.
The market response to the pure electric CLA, the first model on the MMA platform, illustrates the challenge. Equipped with an 800-volt architecture, an 89 kWh battery, and a CLTC range of 866 km (an estimated 693-736 km under WLTP, as CLTC is typically 15-20% more optimistic), the car sold only 1,369 units in its first month in China (November 2025), dropping to just 21 units by February 2026. In Europe, however, it registered over 25,500 units from August 2025 to February 2026—about 4,000 per month. The disparity highlights how product definition and market fit differ: in China, the CLA's starting price of 249,000 yuan (about $35,100, a Chinese guide price before taxes and incentives) faces intense competition from domestic rivals offering lidar, urban NOA (city advanced driver assistance), and rapid software updates.
Mercedes is not alone. Audi's Q6L e-tron and Porsche's Taycan face similar struggles in China, where brand premium fails to justify higher prices. BMW is transitioning from its first-generation EVs to the China-specific Neue Klasse iX3. Porsche announced its 'Sportwagenschmiede 35' strategy in October 2026, aiming to cut its break-even point to below 200,000 annual sales, reduce 9,000 jobs, and divest stakes in Rimac and Bugatti Rimac. Zhang Hong, a member of the China Automobile Dealers Association expert committee, noted that Porsche's 'profit over volume' approach is a pragmatic response to market pressure, though localizing R&D to improve intelligent features remains a challenge.
The retreat extends to ultra-luxury brands: Ferrari cut its 2030 EV target from 40% to 20%, Lamborghini canceled the Lanzador EV project, and Rolls-Royce and Bentley have softened their full-electrification commitments. Meanwhile, the combustion-vehicle base is shrinking: in the first half of 2026, Mercedes delivered 210,200 passenger cars in China, down 28.3% year-on-year; BMW sold 262,000, down 20.4%; and Audi delivered 233,000, down 19%—a combined loss of over 200,000 units.
Redefining luxury
The core issue is not technology but the shifting definition of luxury. In the combustion era, Mercedes could claim authority as 'the inventor of the automobile' based on decades of engineering excellence. Today, innovation is measured by software, iteration speed, and user experience—areas where Chinese companies excel. As industry analysts note, the standard-setting power for luxury is moving from German engineering to China's intelligent electric ecosystem.
Mercedes has acknowledged this by having its Chinese R&D team lead development of intelligent cockpit, autonomous driving algorithms, and EV powertrain technologies, with plans to apply them globally—a shift from 'in China, for China' to 'defined by China, for the world.' But such adjustments take time, and competition does not wait.
BMW's absence from Paris was attributed to 'changed priorities,' with Bloomberg reporting that new CEO Milan Nedeljkovic is implementing cost cuts after the company slashed its full-year EBIT margin forecast from 4-6% to 1-3%. Japanese brands like Nissan, Mazda, Mitsubishi, Suzuki, and Lexus were also absent, with Toyota only showing technology displays. While skipping shows was once seen as a sign of weakness, it now reflects a careful calculation of returns in a period of profit pressure.
For legacy luxury brands, the Paris Motor Show was a reminder that the real test lies beyond the six-day event. As the evaluation criteria for luxury expand to include software and intelligence, these brands must prove their relevance anew—not through heritage alone, but by earning it in a market where the rules are being rewritten by others.
