BMW AG sharply increased sales of all-electric cars last quarter, a rather unexpected success for a German brand that has a peculiar reputation in Ukraine, especially in sharp contrast to the less optimistic results of Tesla and Volkswagen.
In January-March, sales of BMW i4, iX1, and i7 jumped by as much as 41% compared to the same period in 2023, which in turn contributed to a 28% increase in sales of electric vehicles across the group.
The strong sales of BMW’s electric vehicles are the exact opposite of the seasonal slowdown on a global scale, especially in Europe, where the share of battery electric vehicles in total sales has reached a plateau after the abolition of government benefits and incentives. For example, Volkswagen AG reported a 3% decline in sales in the first quarter — successes in China could not compensate for a 24% drop in Europe. Sales of electric vehicles at Mercedes-Benz Group AG fell by 8% in the first quarter due to supply chain problems, the gradual discontinuation of the two-seater Smart Fortwo, and sluggish demand in Germany after the removal of government subsidies. As for Tesla, the market leader for the first time in four years reported a drop in quarterly sales.
BMW vs Mercedes-Benz vs Audi
BMW was an early adopter of electrification of its model range with the launch of the BMW i3 B-Class city car in 2013. Despite mixed reviews and ambiguous perception, the BMW i3, along with the Nissan Leaf and others, can be safely attributed to the cult models of the first generation — its total sales reached 250 thousand at the end of 2022. Since then, BMW, unlike many othersThe company did not slow down and actively increased its supply. And now it is reaping the rewards. In fact, we can mention the i4 premium sedan, which is sold in large quantities, and the brand new iX2 crossover.
As for the challenges, BMW is currently facing fierce competition in China, its largest market, where the weakened economy and the price war unleashed by Tesla are putting pressure on the industry, especially the premium segment. In China, BMW and Mini sales in China decreased by 3.8%, while in Europe and the United States they grew by 5.5% and 1.2%, respectively.
In 2023, electric vehicles accounted for 15% of BMW’s total sales, and this year their share is expected to increase to 20%. With a fleet of 15 all-electric models across all brands, BMW aims for sales of 500 thousand. Amid the success of the EV business, BMW shares added another 1.3% on the stock exchange on April 10, increasing the year-to-date gain to 14%.