German car brands have long enjoyed a strong presence in Southeast Asia, but recent trends suggest their dominance may be waning as the sales of cheaper and increasingly reliable Chinese vehicles surged last year.

In Singapore, the most significant market for German car brands in the region, the share of new car registrations dropped to 28% in 2024, down from 32% the previous year, according to data from the nation's Land Transport Authority.

Meanwhile, Chinese brands captured 18.2% of new car registrations — a leap from just 5.9% in 2023.

Japanese automobile giants also saw a notable decline in market share.

According to data from the Malaysian Automotive Association, BMW's market share in Malaysia dipped slightly from 1.5% to 1.3% in 2024, while Mercedes-Benz and Volkswagen also recorded declines.

The trend is even more pronounced in the Philippines, where German brands sell only a few hundred new cars annually. BMW's sales dropped by nearly a third, while Volkswagen saw a 15% decline, according to a report by local consultancy AutoIndustriya.

Thailand, Southeast Asia's automotive manufacturing hub, has similarly witnessed a decline in German car sales. However, this decline coincided with a broader contraction of the Thai automotive market, which fell to a 15-year low in 2024.

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