BMW AG’s sales of fully electric vehicles at its core brand surged in the primary quarter, outperforming rivals like Tesla and Volkswagen, which have struggled to deal with faltering demand.
Customer deliveries of battery-powered models corresponding to BMW’s i4, iX1 and i7 jumped 41% within the three months through March in comparison with the identical period last 12 months, the corporate said Wednesday. The outcomes helped group EV sales rise by 28%.
BMW’s results contrasted with the broader slowdown in demand for EVs, particularly in Europe, where battery-powered cars have flattened as a share of overall sales after governments withdrew incentives for EV purchases. Volkswagen AG said its EV deliveries fell 3% in the primary quarter as gains in China didn’t offset a 24% decline in Europe.
Mercedes-Benz Group AG said Wednesday its sales of EVs fell 8% in the primary quarter, citing supply-chain issues, the phase-out of its Smart Fortwo two-seater, and sluggish demand in Germany after state subsidies programs were scrapped. Earlier this month, Tesla reported its first year-on-year global sales drop since 2020.
BMW shares rose as much as 1.3% on Wednesday, taking gains this 12 months to 14% with the stock barely ahead of rival Mercedes-Benz over the past 12 months. Volkswagen shares are at concerning the same level as they were a 12 months ago, while Tesla’s are 4.4% lower.
BMW, Volkswagen and Mercedes-Benz released their first-quarter figures as chief executive officers from a few of Europe’s biggest carmakers met in Brussels to debate risks facing the transition to EVs. Luca de Meo — CEO of Renault SA and president of the ACEA auto industry group — said Europe must bolster demand for EVs by expanding charging infrastructure, ensuring supplies of raw materials, improving financing options and introducing market incentives.
BMW is banking on EV sales success after rolling out a big number of latest battery models, including the high-volume i4 sedan and more recently the iX2 crossover. The Munich-based company moved earlier within the EV shift than many competitors with the event of the i3 city automobile, garnering deeper experience with battery technology and having to work through a mixed reception of the model.
“The important thing thing is that BMW has more of a volume-based strategy than Mercedes,” Citi analyst Harald Hendrikse said. “BMW is more willing to compete if the market is tougher.” But in the long run, this might be tougher as growth is slowing in the posh segment and in China, he added.
EVs made up roughly 15% of BMW’s total deliveries last 12 months and are expected to rise to twenty% this 12 months. The corporate goals to spice up that share further this 12 months with half one million EV sales, drawing on 15 fully electric models across its brands.
BMW is, nonetheless, facing stiff competition in China, its biggest market, where a subdued economy and price competition led by Tesla is weighing on the industry. Sales of BMW and Mini brand vehicles in China declined 3.8% in the primary quarter, while deliveries increased 5.5% in Europe and 1.2% within the US throughout the same period.
Volkswagen signaled EV demand in Europe could bounce back. The corporate said greater than twice as many fully electric models were ordered in the primary quarter than last 12 months, bringing the present order bank to roughly 160,000 vehicles.
This Article First Appeared At www.autoblog.com
