Automotive News Europe — 2024-10-10
Automotive Industry
Deliveries of battery-powered BMWs rose in contrast with Mercedes, whose deliveries of BEVs plummeted.
Sluggish demand and stiff competition in China hit third-quarter deliveries at BMW and Mercedes-Benz.
BMW's global sales fell 13%, while Mercedes reported a 3% drop for the July-September quarter, the automakers said on 10 October 2024.
Demand in China, the world's biggest auto market, is suffering from a flagging economy, while foreign carmakers face stiff competition from local manufacturers offering cheaper models, especially EVs.
BMW's sales in China fell 30%, the steepest drop in more than four years. Mercedes sales declined 13% after Chinese buyers held back purchases of expensive models such as the S-Class and Maybach sedans.
BMW did not specify model performance in China but said global sales of its Rolls-Royce cars fell 16%, while its Mini brand suffered a 25% drop.
For BMW, EVs are proving a bright spot as rivals struggle. Deliveries of battery-powered BMWs such as the i4 sedan and iX1 SUV rose 10% to 103,440 units in the quarter.
The results contrast sharply with those of Mercedes, which said its wholesale deliveries of BEVs plummeted 31% to just 42,500 units. The company said its plug-in hybrid sales rose 10% on robust demand in the US.
Mercedes' latest EVs have been met with a tepid response from consumers in Asia's powerhouse economy and elsewhere. Younger drivers in China are increasingly turning to homegrown brands that are perceived to have more advanced in-car digital and entertainment technology.
In Europe, consumers are reluctant to buy more expensive EVs, in part because of patchy charging infrastructure.
BMW and Mercedes cut their annual forecasts in September citing a sluggish Chinese market, while BMW also mentioned problems with a braking system supplied by Continental.
The European Union has recently imposed hefty tariffs on imported Chinese-made EVs, saying they benefit from unfair state subsidies. Beijing denies this and has threatened retaliation, while German automakers, which make about a third of their profits in China, have voiced concern and called for more talks.
The German car sector is facing multiple challenges, ranging from high production costs and managing the shift to electric vehicles to falling demand and rising competition from China.
The troubles have been illustrated most recently by a cost-cutting drive at Volkswagen, which is considering plant closures in Germany for the first time.