Sales shock for BMW and Mercedes: Minus in China hits luxury brands!

Sales shock for BMW and Mercedes: Minus in China hits luxury brands!

Munich/Stuttgart-In the latest sales of the two German automotive giants, Mercedes-Benz and BMW, there is a worrying trend: While Mercedes recorded a decline in its sales figures in the third quarter, BMW experienced a dramatic drop in sales, in particular due to a delivery stop due to technical problems. These developments are highlighting the current market situation and the challenges that companies face.

The paragraph of BMW dropped by remarkable 13 percent in the past quarter. This means that only around 541,000 vehicles were sold, which the company confirmed in a press release. An essential factor for this decline was an extradition stop, which was imposed by 320,000 vehicles that were not handed over to customers after concerns have occurred regarding the braking of a supplier. The worldwide demand has also decreased significantly, especially in China, where sales by terrifying 30 percent fell to only 148,000 cars.

Problems in the luxury segment

Mercedes-Benz reported a milder decline in comparison, with a total sales of 503,600 vehicles, which corresponds to a decline of one percent compared to the previous year. The decline in the lucrative top segment, which also includes the S-Class, is particularly striking-here the decline is even 12 percent. In China, a decisive market for luxury vehicles, sales fell by 13 percent to 171,000 cars. However, Mercedes received a ray of hope, because more than a third of the general sales figures still come from this important market.

The brand with the star also has to struggle with a decline in fully electric vehicles: sales fell by 31 percent to 42,500 units. The company explained that the market environment for electric vehicles in important markets was still challenging, while BMW was able to grow growth in this area. The sales of fully electric vehicles rose 10 percent to 103,000 vehicles in the third quarter, a development that illustrates the different strategies and challenges of the two companies.

Both companies feel the effects of a cooling market, especially due to the persistently weak demand in China, one of the largest automotive markets worldwide. The latest sales figures indicate that both BMW and Mercedes have to rethink their strategies in order to meet the changing consumer preferences and to revive growth in an increasingly competitive market.

For more information and detailed insights into the sales disciplines of the two manufacturers, The article on www.zvw.de consulted.