Despite the Paris Motor Show being one of the most high profile motor events of the year, it would appear that Audi along with other luxury brands are suffering from the gloom of the event.

The European car industry is in dire need of help and Audi along with other luxury brands have found themselves in trouble. At first it was the mass passenger car market that was struggling with the luxury car market hitting new highs. Now everyone is in the same boat.

The Paris Motor Show for Audi has not been as exciting as recent motor shows. The worries of the French economy have made people think, will people actually want to buy new cars? Instead of embracing the event, luxury car makers have been dogged with questions regarding their troubles.

The likes of Peugeot, Renault and Vauxhall have suffered incredible losses and have had to shut down factories along with cutting jobs. Prices of cars have fallen and there are more cars being produced than what is actually being demanded. Will the luxury segment reach these sorts of lows?

Even in the likes of China, the luxury car market has cooled down a great deal. Before the likes of Audi and BMW were using China to compensate for such poor performances in Europe. Now they can no longer rely on the world’s largest auto market.

The situation has been so bad for Mercedes-Benz that they reduced their original profit margins in their estimations. They have suffered China recording a 6 per cent growth this year compared to 2011 whereas BMW and Audi have seen that figure reach double digits.

China has seen more and more competition as foreign car makers want to make an impact in the world’s biggest car market. Volvo, Land Rover and Ford’s luxury brand Lincoln have providing some stiff competition for the established luxury brands.

BMW have plenty to worry about. A huge chunk of their sales come from China, including 50 per cent of the 7 Series sales.
The European car market has come under even more strain. The home market of Germany for Audi, Mercedes and BMW has been in decline in the luxury segment.

The Paris Motor Show should have been a way for Audi to showcase future cars and technology. They have instead been bombarded with negative questions.