BMW sales slide after brake fault recall, China demand slump

  • The German auto giant is focusing on new electric models and faces increasing competition from local brands.
BMW i4 iX1
BMW's two flagship electric vehicles i4 and iX1 have helped the German auto giant to bump up total car sales by 17 per cent.
BMW i4 iX1
BMW's two flagship electric vehicles i4 and iX1 have helped the German auto giant to bump up total car sales by 17 per cent.

BMW AG 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 four per cent to 2.45 million vehicles in 2024, the company said Monday. 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.

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BMW shares — which had dipped 1.4 per cent before the sales figures were released — recovered slightly but were still down one per cent at 12:15 p.m. 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 Co. 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 AG, Audi’s parent Volkswagen AG and BMW.

Also Read : Tesla outpaces Audi amid electric vehicle demand struggles in Europe and China

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 AG, another Volkswagen-controlled brand, said Monday that China deliveries slumped 28 per cent last year, though total sales improved in the fourth quarter.

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.

Watch: BMW i4 score 4 stars at Euro NCAP safety test

For BMW, EVs offered a bright spot compared to rivals, with deliveries of battery-powered models such as the 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.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 14 Jan 2025, 08:47 AM IST
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