BMW and Mercedes sales plummet in China. A sign that European manufacturers are now having a hard time making inroads with Chinese consumers due to increasingly fierce competition from local producers. Difficulties that could aggravate an already difficult situation for the European automotive industry as demonstrated by the Volkswagen crisis and the difficult moment for Stellantis.
BMW numbers in China
In the July-September quarter the company sold only 148,000 cars, a drop of 30%. The country now accounts for only a quarter of BMW sales, where in the recent past it accounted for a third of deliveries. For the Munich company it was also a negative quarter in the United States where 83,000 cars were sold, a reduction of 9%. The decline also appears to be due to problems with a brake supplier that led to the interruption of deliveries of around 320,000 vehicles. In contrast, European sales fell just 1 percent to 219,000 vehicles. BMW cut its annual forecast in September and now expects a slight decline in sales and a significant decrease in profits for the current year.
For Mercedes -13% sales in the Chinese market
China is also becoming a difficult market for Mercedes which recorded a -13% decline in the same quarter. A significant problem given that around a third of the Stuttgart company’s sales take place in China. The global data, i.e. referring to all markets, instead sees a rather limited decline, only 1% less than a year ago. However, it should be noted that sales of highly profitable luxury models, including the S-Class, fell by 12%. Sales of electric cars were also down for Mercedes, falling 31% to 42,500 units due to “weak demand” in key markets. On the electric front, BMW is doing better with a 10% increase and 103,000 cars delivered.
BMW vs Mercedes revenue
Luxury Automotive Giants Face Challenges: Analysis of BMW and Mercedes Sales Decline
As we delve into the latest news on the automotive industry, it’s evident that luxury brands BMW and Mercedes are facing significant challenges. According to recent reports, both companies have experienced a decline in sales, largely attributed to weak demand in China, the world’s biggest auto market.
BMW’s Sales Take a Hit
BMW’s sales have plummeted by 13% in the July-September quarter, with a staggering 30% drop in China sales for BMW and Mini-branded cars [[2]]. This significant decline marks the steepest drop in more than four years for the German luxury car manufacturer. The company’s global sales have been affected, with deliveries falling by 13% for the quarter [[3]].
Mercedes Also Suffers
Mercedes, another prominent luxury car brand, has also reported a decline in sales. The company’s sales dropped by 3% for the July-September quarter, with a notable 13% decline in China sales [[2]]. This slowdown in the luxury segment has raised concerns about the brand’s performance in the world’s largest car market.
China’s Role in the Decline
The primary factor contributing to the decline in sales for both BMW and Mercedes is the weakening demand in China. As reported by Daily Sabah, “Demand in China, the world’s biggest auto market, is [weak]” [[1]]. The luxury slowdown in China is exacerbating the challenges faced by these automotive giants, making it increasingly difficult for them to maintain their market share.
Industry Implications
The decline in sales for BMW and Mercedes has significant implications for the automotive industry. As luxury brands navigate this challenging landscape, they must adapt to changing market conditions and consumer preferences. This might involve revising their marketing strategies, investing in emerging technologies, and exploring new markets to mitigate the impact of the slowdown in China.
Conclusion
the sales decline for BMW and Mercedes serves as a wake-up call for the luxury automotive industry. As China’s demand for luxury cars continues to weaken, these brands must be agile and responsive to the shifting market landscape. By analyzing these trends, industry experts can gain valuable insights into the challenges and opportunities that lie ahead. As the automotive landscape continues to evolve, it will be interesting to see how BMW, Mercedes, and other luxury brands respond to these challenges and adapt to the changing market conditions.
