BMW, Mercedes Vie With BYD-Led China Rivals at Munich Show (1)

German carmakers are already losing their grip on the Chinese market to local players led by BYD Co. Now, they’re mounting a fightback to prevent a similar result on their home turf.

BMW AG, Mercedes-Benz Group AG and Volkswagen AG are launching a fresh push in Europe at the Munich auto show this week, wheeling out new electric vehicles they hope will underline German engineering as a global benchmark and recapture attention from Chinese challengers.

The stakes are high. German automakers are grappling with US tariffs, muted sales in Europe and eroding market share in China. At risk is ...