In recent years, the Chinese automotive market has posed increasing competition to Western as well as Asian automotive giants. However, this article will focus not on Chinese automakers, but on a German giant and long-standing fixture in car manufacturing - BMW.
In reality, it is no secret that well-known automakers, including the VAG Group, Tesla, and Mercedes-Benz, are currently facing certain market challenges. However, BMW's latest report surprised me quite a bit. As reported by Reuters, according to the BMW Group report, total global deliveries of BMW, MINI, and Rolls-Royce (some might not know, but these two companies belong to the BMW Group) amounted to 551,072 vehicles, which is 6.3% less compared to the same period last year. Looking at the first nine months overall, deliveries fell by 4.9% to 1.7 million cars. This downward trend was largely driven by the Chinese market. Deliveries of BMW and MINI in China plummeted by 24.8%, totaling 114,355 units. Notably, this is not a one-time drop - this trend has been sustained for a significant period.
However, despite the challenges in the Chinese market, BMW feels more confident in other key markets. In Europe, deliveries rose by 2.7% to 235,628 cars. The US recorded a 2.5% increase, reaching 106,741 cars. Now for the most interesting part - electric vehicles, one of BMW's crucial development paths. Global deliveries of fully electric vehicles by the BMW Group grew by 7.2% to 110,257 units, while in Europe they surged by a massive 37.5%. The new Neue Klasse platform and European orders are shaping the brand's future development prospects.
BMW Group Sales Performance: Q3 2026 Change (%)
It is worth analyzing the factors behind this sales dynamic.
The first factor is the emergence of China's own premium brands competing with German companies. These include BYD, Zeekr, Li Auto, and NIO. They offer more technology for less money, and such pricing policies of Chinese brands run counter to BMW's margin-focused goals. Consequently, it is becoming increasingly difficult for the German giant to participate in this race.
Furthermore, another factor comes into play - the crisis in the Chinese real estate market, which has heavily hit the pockets of the middle and upper classes in China.
As mentioned at the beginning, the drop in sales affects not only BMW but also its direct competitors - Mercedes-Benz, Volkswagen Group, and Porsche. They are also facing market issues, though the scale and causes of these problems may differ.
It should also be noted that BMW is currently being helped by diversification. Its massive plant in Spartanburg produces the popular X3, X5, and X7 crossovers directly in the US. Local production helps reduce the impact of import tariffs and provides the company with more stable positions in the American market.
Europe also shows loyalty to the brand, partly due to a strong lineup of electric cars. The 37.5% growth in fully electric BMW deliveries in Europe indicates that despite the problems in China, the brand resonates with European buyers.
The BMW Group, like most automotive companies, is undergoing a difficult but natural transformation. The Chinese market has ceased to be an easy source of windfall profits, forcing BMW to optimize costs. The company already has plans to reduce administrative positions using AI, and it is focusing on margins rather than chasing sales volumes.
In fact, I would venture to say that European giants could have partially avoided this crisis, or at least mitigated their losses, if they had taken electric vehicles seriously much earlier. They had that opportunity. Even five years ago, electric cars were viewed skeptically due to technological immaturity and an underdeveloped infrastructure. Conservative European brands likely held this very position.
Nevertheless, buyers are increasingly looking at practicality, technology, and price. And companies like BMW are forced to adapt to these changes.
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