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 mentioned 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 general gross sales after governments withdrew incentives for EV purchases. Volkswagen AG mentioned its EV deliveries fell 3% within the first quarter as features in China did not offset a 24% decline in Europe.
Mercedes-Benz Group AG mentioned 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 had been scrapped. Earlier this month, Tesla reported its first year-on-year world gross sales drop since 2020.
BMW shares rose as a lot as 1.3% on Wednesday, taking features 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 had 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 government officers from a few of Europe’s greatest carmakers met in Brussels to debate dangers dealing with the transition to EVs. Luca de Meo — CEO of Renault SA and president of the ACEA auto business group — mentioned Europe must bolster demand for EVs by increasing charging infrastructure, guaranteeing provides of uncooked supplies, enhancing financing choices and introducing market incentives.
BMW is banking on EV gross sales success after rolling out a major variety of new battery fashions, together with the high-volume i4 sedan and extra not too long ago the iX2 crossover. The Munich-based firm moved earlier within the EV shift than many opponents with the event of the i3 metropolis automotive, garnering deeper expertise with battery know-how 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 mentioned. “BMW is extra keen to compete if the market is tougher.” However sooner or later, this shall be tougher as progress is slowing within the luxurious phase and in China, he added.
EVs made up roughly 15% of BMW’s whole 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 one million EV gross sales, drawing on 15 absolutely electrical fashions throughout its manufacturers.
BMW is, nonetheless, dealing with stiff competitors in China, its greatest market, the place a subdued financial system and value warfare led by Tesla is weighing on the business. 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 mentioned greater than twice as many absolutely electrical fashions had been ordered within the first quarter than final yr, bringing the present order financial institution to roughly 160,000 automobiles.