BMW car sales slipped last year as a costly recall compounded a slump in demand in China that’s hit Germany’s automakers hard.
Sales of the group’s cars, which also include the Mini and Rolls-Royce brands, dropped 4 per cent to 2.45 million vehicles in 2024, the company said on Monday (Jan 13). BMW walked back its outlook in September after a faulty braking system forced it to recall as many as 1.5 million vehicles, which took a particular toll on deliveries in China.
BMW shares – which had dipped 1.4 per cent before the sales figures were released – recovered slightly but were still down 1 per cent at 12.15 pm in Frankfurt.
German carmakers have been left behind in China, the world’s biggest auto market, as consumers increasingly opt for local brands such as BYD. They’re also grappling with weak demand for electric vehicles in Europe after several countries slashed subsidies.
The challenges triggered a wave of profit warnings last year, including from Mercedes-Benz Group, Audi’s parent Volkswagen and BMW.
Earlier on Monday, Audi said deliveries for 2024 slipped 12 per cent to 1.67 million vehicles, as it too struggled with intensifying competition in Europe and China and weak EV demand. Porsche, another Volkswagen-controlled brand, said on Monday that China deliveries slumped 28 per cent last year, though total sales improved in the fourth quarter.
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Rival Mercedes last week saw a similar pickup in demand in the final few months of 2024 but still reported a decline in sales last year.
For BMW, EVs offered a bright spot compared to rivals, with deliveries of battery-powered models such as as i4 sedan and iX1 sport utility vehicle rising 14 per cent last year. The performance meant fully electric vehicles made up 17 per cent of BMW’s total car sales last year. That’s better than Mercedes’ 9.3 per cent.
BMW is banking on EVs after launching several new battery models such as the high-volume i4 and the iX2 crossover last year.
BMW will later this year present the first model of its Neue Klasse line of plug-in cars, with production starting in late 2025. Meanwhile, Mercedes aims to revive flagging EV sales with its entry-level CLA sedan. BLOOMBERG
