German Carmakers Mercedes-Benz and BMW Experience Sales Dip in China
Supply Chain Issues and Model Changes Impact Mercedes-Benz Sales
German luxury carmakers Mercedes-Benz and BMW have reported a decline in sales in China during the third quarter. Mercedes-Benz attributed its sales drop to supply chain issues and model changes. The company’s global sales fell 4% year-on-year in July-September, with a 12% slump in sales in China. The supply chain bottleneck affected the availability of the GLC luxury SUV model, while a model changeover for the E-Class also impacted volumes. Despite these challenges, Mercedes-Benz remains on track to meet its full-year guidance for flat sales growth.
BMW Reports Growth in Global Retail Sales, but China Sales Decline
On the other hand, BMW saw a 5.8% rise in global retail sales to 621,699 vehicles in July-September. However, retail sales of BMW and Mini models in China dropped 1.8%. While carmakers have faced weakened demand and increased price competition in China this year, passenger vehicle sales showed signs of recovery in August. Despite the drop in sales during the third quarter, BMW’s year-to-date sales in China increased by 1.7%. Mercedes-Benz also maintained its nine-month wholesale figures in the country at the previous year’s level, with total global sales up 2% compared to last year.
Positive Outlook for Mercedes-Benz and BMW
Although detailed retail sales figures are not disclosed, both Mercedes-Benz and BMW remain cautiously optimistic. Mercedes-Benz stated that retail sales were positive in the third quarter and on a nine-month basis. BMW reported a 5.1% increase in global retail sales so far this year. Despite the challenges faced in China, both carmakers are confident about their overall sales performance and expect to meet their full-year guidance.
Conclusion
German high-end carmakers Mercedes-Benz and BMW have encountered sales challenges in the Chinese market. Supply chain issues and model changes affected Mercedes-Benz’s global sales, resulting in a 4% decline in July-September. BMW, on the other hand, experienced growth in global retail sales but saw a slight decline in China. Both carmakers remain positive about their sales outlook and are focused on meeting their full-year guidance. Despite the difficulties, the luxury car market in China is showing signs of recovery, providing hope for future growth.
