Luxury Sedan sales Continue to decline as SUVs Dominate Market – A recent analysis of automotive sales data reveals a continuing shift in consumer preference away from traditional luxury sedans and towards larger SUV models like the Mercedes-Benz GLS and BMW X7.

Despite the overall downturn in the segment,Mercedes-Benz remains the top seller of luxury sedans,having moved approximately 69,000 units in the F-segment – encompassing models such as the S-Class,S-Class Maybach,AMG GT 4-Door Coupe,and EQS – throughout the latest reporting period.The BMW Group follows with roughly 47,000 vehicles sold,including the BMW 7 Series,BMW i7,BMW 8 Series Gran Coupe,and Rolls-Royce Ghost and Phantom. Volkswagen Group secures the third position with 45,100 cars delivered, comprised of the Audi A8, Porsche Panamera, and Bentley Flying spur.

The trend indicates a clear preference for SUVs, leading to a gradual erosion of market share for luxury sedans. These vehicles are increasingly becoming the choice of dedicated automotive enthusiasts, buyers with a preference for classic designs, and customers with established brand loyalty.

Automotive industry analysts point to both declining sales figures and growing competition from Eastern markets, particularly China, as key factors prompting even established luxury brands to reassess their product strategies and future investments. This shift is occurring globally, with impacts felt across Europe, North America, and Asia. The rise of electric SUVs, such as the BMW iX and Mercedes-Benz EQB, is further accelerating this trend, offering consumers a blend of luxury, space, and environmental consciousness.

The data suggests a potential long-term restructuring of the luxury automotive landscape, with manufacturers potentially allocating more resources to SUV advancement and production while adapting their sedan offerings to cater to a niche, but dedicated, customer base.Experts at J.D. Power predict continued SUV dominance for the foreseeable future, citing factors like increased cargo capacity and perceived safety benefits as primary drivers of consumer demand.

Mitsubishi Exits China After Three Decades

Automaker Cites Rapid Industry Shifts and Financial Strain

Mitsubishi Motors has officially ceased operations in China, marking the end of a nearly 30-year market presence that was once considered vital for the Japanese manufacturer’s expansion.

End of an Era

Production of vehicles by the joint venture with GAC halted in 2023, and the company has now concluded its long-standing engine production partnership with Shenyang Aerospace, which supplied engines for Mitsubishi and several Chinese domestic brands.

Factors Driving Departure

A combination of declining sales, fierce local competition, and substantial import duties significantly undermined Mitsubishi’s business model in the crucial Chinese market. The company pointed to the “rapid transformation” of China’s automotive sector.

This transformation sees traditional brands increasingly challenged by domestic manufacturers specializing in electric vehicle models. Mitsubishi began its Chinese car production journey in 2012 with GAC, seeing initial success with models like the Outlander, which once sold 144,000 units annually.

Financial Blows

The situation deteriorated this year, with Mitsubishi’s operational profit plummeting by as much as 84% in the first quarter. According to Nikkei Asia, import duties levied by the US cost the company approximately 14.4 billion yen (about 87 million euros), reducing its operating profit to just 5.6 billion yen (35.5 million euros).

China’s electric vehicle market is booming, with BYD surpassing Tesla in global EV sales in the fourth quarter of 2023, highlighting the shift in consumer preference and manufacturing prowess.

Looking Ahead

Mitsubishi’s withdrawal signifies a broader trend among some legacy automakers struggling to adapt to the accelerating pace of electrification and the competitive landscape dominated by agile local players in China.

Mercedes Diesel: 43 Years of Evolution Revealed

Classic W123 Takes on the Modern E220D in a Landmark Comparison

A fascinating study by German company Carwow pits a 1982 Mercedes 240 TD (W123) against the 2025 E220D 4Matic, revealing dramatic shifts in performance, efficiency, and luxury over 43 years.

Power and Performance Leaps

The vintage 240 TD, a symbol of its era, offered a modest 72 horsepower and 137 Nm of torque. In stark contrast, the contemporary E220D boasts a potent 197 horsepower and 440 Nm of torque, significantly boosted by a mild-hybrid system. Both vehicles feature four-cylinder diesel engines, highlighting the engineering advancements in power delivery.

Value Through the Decades

Adjusted for inflation, the 1982 Mercedes W123 would cost approximately €39,236 today. This figure is notably less than the €65,382 price tag of the brand-new E220D, illustrating a considerable increase in automotive pricing when accounting for economic changes.

Driving Dynamics: Then and Now

While the test pilot appreciated the classic Mercedes’ four-speed manual gearbox, a fifth gear was noted as desirable for highway cruising. The older model’s sound insulation lagged behind modern standards, though its overall comfort was described as “fantastic.”

Modern Comfort and Highway Prowess

The new Mercedes E220D excels on the highway, offering exceptional cabin silence and a superior level of comfort. However, the automatic transmission’s performance was critiqued, with the driver finding it less than optimal in its responses.

Fuel Efficiency Gains

Real-world testing demonstrated a significant improvement in fuel economy. The modern E220D averaged an impressive 5.1 liters per 100 kilometers, a marked improvement over the older model’s consumption of 7.9 liters per 100 km. This efficiency gain aligns with broader industry trends towards more economical powertrains, with the average fuel efficiency for new cars sold in the EU in 2023 being approximately 4.5 L/100 km according to the European Environment Agency.