German automakers are losing ground rapidly in China as Mercedes-Benz, BMW and Volkswagen face sharp sales declines and growing pressure from domestic rivals. At the same time, Jaguar Land Rover is taking a different approach to the Chinese market, reviving the Freelander name through a new standalone brand created with Chinese automaker Chery.

Mercedes-Benz Struggles to Regain Momentum

Mercedes-Benz, BMW and Volkswagen all reported second-quarter sales declines of 30% or more, according to Automotive News. Mercedes executives are pursuing higher volume to reverse the decline, while local manufacturers are accepting significant profit cuts to attract customers.

Mercedes-Benz’s struggle was highlighted by its recent “So Mc-Benz” campaign with McDonald’s, which replaced the automaker’s iconic hood star with a cheeseburger figurine on the all-electric CLA.

Mercedes sold just 1,153 units in the first half of the year, while Xiaomi delivered more than 80,000 similarly priced SU7 sedans. The article attributes Mercedes’ sales decline to local buyers rejecting its voice controls in favor of more connected domestic alternatives.

BMW Faces China Sales and Pricing Pressure

BMW is also dealing with a major downturn in China. The Bavarian automaker reduced its profit margin projection to 1% for the year, with the collapse in China cited as a major factor.

BMW is betting heavily on its upcoming electric Neue Klasse lineup, but uncompetitive pricing remains a significant challenge. The decline has also put BMW jobs worldwide on the line, while models such as the iX3 remain significantly more expensive than what the article describes as a superior, China-specific Tesla Model Y.

Volkswagen Confronts a Fundamental Challenge

Volkswagen faces what is described as the most existential crisis among the three German automakers. CEO Oliver Blume has acknowledged that the company’s business model is fundamentally broken, setting the stage for domestic factory closures.

The automaker is also partnering with Chinese manufacturers Xpeng and SAIC as it attempts to recover its position. Some analysts warn that Volkswagen could eventually be absorbed by the Chinese competitors it once mentored.

China’s Faster Development Cycle Widens the Gap

The central challenge for German automakers is development speed. The article says German manufacturers continue to operate on a four-year development cycle rooted in the gasoline era, while China’s electric vehicle market operates more like the consumer electronics industry.

Chinese automakers are producing heavily updated, software-loaded vehicles every 18 months. That pace is increasingly important as Chinese buyers seek smartphone-focused entertainment, AI capabilities and rapid product updates alongside driving performance.

German Brands Face Pressure to Match “China Speed”

The traditional prestige of German automotive brands is no longer enough to justify a premium price in China’s rapidly changing market, according to the article. Mercedes-Benz, BMW and Volkswagen are under pressure to deliver advanced technology at competitive prices while adapting to much faster development cycles.

For the three legacy automakers, the challenge is increasingly defined by their ability to match “China Speed” and provide highly connected vehicles without the premium that has historically accompanied their brands.

The Freelander Name Returns in China

While German automakers are struggling to maintain their position in China, Jaguar Land Rover is reviving the Freelander name through a new standalone brand created in partnership with Chinese automaker Chery.

The last new Freelander wore a Land Rover badge and was priced somewhere between $30,000 and $40,000, depending on where it was sold and its equipment. The Discovery Sport eventually replaced it, and the Freelander name faded away.

Now the name has returned with the Freelander 8, which is available for pre-order in China at 339,900 yuan, or roughly $50,000. The six-seat version starts at about $51,500, while the Max+ Edition costs $63,200.

A First Edition limited to 1,000 units is priced at 449,900 yuan, or about $66,200. The new Freelander brand is targeting the global market, although a U.S. launch is not currently expected.

Freelander 8 Brings Advanced Technology

The Freelander 8 uses an 800-volt extended-range platform with 6C charging. The battery is claimed to charge from 20% to 80% in 12 minutes.

Power comes from a 1.5-liter turbocharged four-cylinder engine acting as a range extender, paired with a 60.3-kWh CATL battery. Its dual-motor all-wheel-drive system produces 818 horsepower and about 600 lb-ft of torque.

The SUV can accelerate to 62 mph in 4.6 seconds and has an electric-only range of 193 miles based on the CLTC rating.

Luxury Interior and New Driver Technology

Inside, the Freelander 8 features a 46.3-inch panoramic display and a 15.6-inch central screen, along with crystal control knobs and physical buttons featuring what Chery calls “Paris Nail” detailing.

Second-row passengers get zero-gravity seats with heating, ventilation, massage and leg rests. The cabin also includes a folding table and a fridge.

The Freelander 8 is among the first vehicles to use Qualcomm’s Snapdragon 8397 automotive processor. Every version also comes standard with Huawei’s Qiankun Smart Driving ADS 5 system.

Off-Road Hardware Sets the Freelander 8 Apart

The SUV also features an intelligent all-terrain system and locking differentials at the front, center and rear. Rear-wheel steering is standard and provides up to 10 degrees of angle.

The Freelander 8 also includes a crab-walk mode. Braking comes from six-piston calipers and 15.9-inch ventilated discs, with a claimed shortest stopping distance of 117 feet.

Freelander Eyes Global Markets, Not the U.S.

Freelander says it wants to expand globally, with Europe and the Middle East among its target markets. North America is a different story, with tariffs and the current political climate making it difficult to bring a China-built SUV into the U.S.

Jaguar Land Rover is nevertheless pursuing the American market through a separate strategy. The company is teaming up with Stellantis to develop new Defender-branded models specifically for U.S. buyers, potentially using Stellantis’ North American factories.

The Freelander name has returned, but the Freelander 8 is currently positioned as a China-built SUV developed through JLR’s partnership with Chery rather than a model expected at U.S. Land Rover dealers.