China market rout, slowing economy sap demand for luxury cars

Beijing

PRICES for German luxury cars in China are tumbling as the country's stock market selloff and worries about broader economic growth chill demand for car brands that once commanded price premiums from affluent Chinese consumers.

At Mercedes-Benz stores operated by a dealer group with nearly 200 multiple brand outlets, customer traffic at showrooms has dwindled markedly since mid-June, when a stock market slide that saw indexes plunge by as much as a third began.

A senior manager at that dealer chain said customer traffic at some of its Mercedes-Benz stores was "down 20 per cent to 30 per cent" compared with last year'…