BMW AG’s gross sales of absolutely electrical automobiles at its core model surged within the first quarter, outperforming rivals like Tesla and Volkswagen, which have struggled to deal with faltering demand.
Buyer deliveries of battery-powered fashions akin to BMW’s i4, iX1 and i7 jumped 41% within the three months by March in comparison with the identical interval final yr, the corporate stated Wednesday. The outcomes helped group EV gross sales rise by 28%.
BMW’s outcomes contrasted with the broader slowdown in demand for EVs, notably in Europe, the place battery-powered automobiles have flattened as a share of total gross sales after governments withdrew incentives for EV purchases. Volkswagen AG stated its EV deliveries fell 3% within the first quarter as positive factors in China didn’t offset a 24% decline in Europe.
Mercedes-Benz Group AG stated Wednesday its gross sales of EVs fell 8% within the first quarter, citing supply-chain points, the phase-out of its Good Fortwo two-seater, and sluggish demand in Germany after state subsidies packages have been scrapped. Earlier this month, Tesla reported its first year-on-year international gross sales drop since 2020.
BMW shares rose as a lot as 1.3% on Wednesday, taking positive factors this yr to 14% with the inventory barely forward of rival Mercedes-Benz over the previous 12 months. Volkswagen shares are at about the identical stage as they have been a yr in the past, whereas Tesla’s are 4.4% decrease.
BMW, Volkswagen and Mercedes-Benz launched their first-quarter figures as chief govt officers from a few of Europe’s greatest carmakers met in Brussels to debate dangers going through the transition to EVs. Luca de Meo — CEO of Renault SA and president of the ACEA auto trade group — stated Europe must bolster demand for EVs by increasing charging infrastructure, making certain provides of uncooked supplies, enhancing financing choices and introducing market incentives.
BMW is banking on EV gross sales success after rolling out a big variety of new battery fashions, together with the high-volume i4 sedan and extra just lately the iX2 crossover. The Munich-based firm moved earlier within the EV shift than many rivals with the event of the i3 metropolis automobile, garnering deeper expertise with battery expertise and having to work by a blended reception of the mannequin.
“The important thing factor is that BMW has extra of a volume-based technique than Mercedes,” Citi analyst Harald Hendrikse stated. “BMW is extra prepared to compete if the market is tougher.” However sooner or later, this will likely be tougher as development is slowing within the luxurious section and in China, he added.
EVs made up roughly 15% of BMW’s complete deliveries final yr and are anticipated to rise to twenty% this yr. The corporate goals to spice up that share additional this yr with half 1,000,000 EV gross sales, drawing on 15 absolutely electrical fashions throughout its manufacturers.
BMW is, nonetheless, going through stiff competitors in China, its greatest market, the place a subdued economic system and worth struggle led by Tesla is weighing on the trade. Gross sales of BMW and Mini model automobiles in China declined 3.8% within the first quarter, whereas deliveries elevated 5.5% in Europe and 1.2% within the US throughout the identical interval.
Volkswagen signaled EV demand in Europe may bounce again. The corporate stated greater than twice as many absolutely electrical fashions have been ordered within the first quarter than final yr, bringing the present order financial institution to roughly 160,000 automobiles.
