BMW's Second-Quarter Deliveries Fall, China Sales Drop by a Third

BMW reported a significant decline in global deliveries for the second quarter of 2024. Total deliveries fell by 4.7% compared to the same period last year, to 618,826 units. The main factor behind this decline was a nearly one-third drop in sales in China, one of BMW's most important markets. Sales in China fell by 28.6% in the second quarter to 147,897 units, attributed to the slowdown in the Chinese economy, increased competition, and weakening consumer demand. Although BMW tried to boost sales in other regions to offset the sharp decline in the Chinese market, the overall picture was negatively affected. Deliveries in Europe and the Americas performed relatively better, with sales in Europe rising by 6.2% and in the US by 2.3%. However, these increases were not enough to compensate for the large loss in China. BMW is also struggling to meet its growth targets in the electric vehicle segment; fully electric vehicle sales increased by only 1.1% in the second quarter. The company hopes to recover in the second half of the year with the launch of new models and cost-saving measures. However, analysts suggest that if demand weakness in China persists, BMW may have to revise its 2024 profit targets. BMW shares edged lower on European stock exchanges following the news. This is not investment advice.