BMW car sales drop on weakness in China, US

[BERLIN] BMW’s first-quarter car sales declined after more struggles in China, where luxury spending is down and German manufacturers are ceding share to local brands.

Global deliveries fell 3.5 per cent amid a 10 per cent drop in China and a decline in the US, BMW said Tuesday (Apr 14). On the positive side, the luxury-car maker cited growth in Europe and more than 50,000 orders for its new electric iX3 sport utility vehicle.

BMW is facing similar challenges to its European peers, which are grappling with stiff competition from Chinese rivals, tariffs in the US and uncertainty sparked by the war in the Middle East. Last week, both Porsche and Mercedes-Benz Group reported falling sales in the first quarter.

BMW has begun rolling out the first of dozens of new and updated vehicles on its Neue Klasse platform, which the company spent more than 10 billion euros (S$15 billion) to develop. It plans to introduce a Chinese version of the iX3 – the first model of that line – at the Beijing car show later this month. It’s also unveiled the latest version of its best-selling 3-Series sedan.

Chinese automakers are increasingly targeting premium segments in China and Europe. BYD’s luxury Denza brand recently unveiled models for the region including the flagship Z9GT – a roughly 100,000 euros EV capable of ultra-fast charging and accelerating from zero to 62 miles per hour in 2.7 seconds. BLOOMBERG