BMW AG’s sales in the first quarter took a major drop as the China slump hit the company in full force. Cut-throat competition from local manufacturers continues to shrink the company’s share of sales in China, which is one of the world’s biggest car markets. If you are someone who wants to know more about the declining sales of BMW, this article is for you. It brings you everything you need to know about the BMW sales taking a drop during the first quarter. The following article includes information about the situation of the global electric vehicle industry as well.
BMW Sales Decline: A Significant Drop In Sales
The sales of BMW’s electric vehicles in the Chinese car market have shrunk to only 155,195 deliveries this year. This led to a significant 17% drop in sales, which is also one of the lowest drops in the span of five years. The Chinese slump is the reason that also ended up dragging the company’s global sales down 1.4%. The German car-making company revealed this is their worst first-quarter sales result in the Chinese markets since the COVID-19 era in 2020. The main reason behind this drop is the competition local low-cost rivals are offering. An extended property crisis has also made Chinese consumers less confident.
Volkswagen, Mercedes Also Hit Hard as China Market Tightens for European Carmakers
It seems like the Chinese car market is actively shrinking for European car-making companies. The competition from various other local brands popular in China is making things difficult for companies like Volkswagen and Porsche. Mercedes-Benz AG’s sales also witnessed a significant fall of 10% during its first quarter. On the other hand, Volkswagen AG’s deliveries in the Chinese markets also saw a fall of 7.1%.
Rise In Demand For Electric Vehicles
Apart from the slump for European car-making companies in the Chinese market, the global demand for electric vehicles has witnessed a significant rise. BMW reported a 32% rise in the sales of electric vehicles when compared to the previous year. The European sales of electric vehicles also jumped as high as 65% this year. EV-making companies like Volkswagen and BMW seem like they are gaining an advantage over Tesla. This is mainly because of the public’s aversion after Elon Musk got involved in the Trump administration.
BMW Sees Strong Sales Recovery in U.S. and Europe Despite China Setback
According to the reports BMW has made public, the overall sales of the company in the United States of America witnessed an improvement of 4.1%. European customers also went ahead and bought 6.2% more BMW Group vehicles when compared to the sales of last year. These results reflect the sales that were made before Trump imposed a 25% auto tariff. The prices of BMW’s stock saw a 5% rise as global stock markets bounced back after Trump’s announcement of pausing new tariffs. Their stocks witnessed a major fall of 38% over the previous year. It is going to be interesting to see how BMW and other major car-making companies will save their share in the rapidly shrinking Chinese market.
FAQs
1. Why did BMW’s sales drop in the first quarter of 2025?
BMW’s Q1 2025 sales fell due to weak performance in China, caused by stiff competition from local carmakers and reduced consumer confidence.
2. How much did BMW’s sales fall in China?
BMW’s sales in China dropped by 17% in Q1 2025, marking their lowest first-quarter result since 2020.
3. Is BMW still doing well in other markets?
Yes, BMW saw a 4.1% increase in sales in the U.S. and a 6.2% rise in European markets in Q1 2025.
4. Are BMW’s electric vehicles performing better globally?
Globally, BMW’s EV sales rose by 32% year-over-year, with European EV sales surging by 65%.
5. How are other German carmakers performing in China?
Mercedes-Benz saw a 10% drop and Volkswagen a 7.1% drop in Q1 sales, showing that European brands are struggling in China.
6. Will BMW recover from the China sales slump?
While the China market remains a challenge, BMW’s strong EV performance and recovery in the U.S. and Europe suggest potential resilience.
