Weak demand for luxury cars! Mercedes-Benz and BMW both see a decline in Q3 sales

Due to weak demand in the luxury car market, Mercedes-Benz and BMW both saw a decline in sales in the third quarter.

On Thursday, October 10th, Mercedes-Benz reported that the group sold 594,600 cars and trucks in the third quarter, a 3% year-on-year decrease; sales of pure electric vehicles (BEV) dropped by 31% to 46,900 units. In the third quarter, Mercedes-Benz's deliveries in China decreased by 13% to 170,700 units.

BMW Group saw a 13% year-on-year decline in sales in the third quarter. Sales declined in all regions for BMW, with deliveries of BMW and Mini vehicles in China dropping by nearly 30%. BMW mentioned that they had previously issued an emergency recall of 1.5 million vehicles due to brake system faults, which also impacted the delivery data.

Unlike other car manufacturers, BMW's electric vehicle business was a bright spot. Sales of BMW's electric models such as the i4 sedan and iX1 SUV grew by 10% year-on-year to 103,440 units in the third quarter, contrasting sharply with Mercedes-Benz.

Following the release of the data, BMW's stock price in the European stock market initially plummeted significantly, but has since narrowed its gains in a V-shaped trend, currently trading at €77.08 per share.

Additionally, Mercedes-Benz's overall sales of high-end cars in this quarter dropped by 12%. Some analysts pointed out that this signifies a setback for Mercedes-Benz in further solidifying its position in the high-end brand market, and serves as another warning signal for the German luxury car market:

"The market environment for electric vehicle sales remains sluggish, with intense pricing competition in key markets."

From high production costs and the transition to electric vehicles, to declining demand and increased competition from other brands, the German automotive industry is currently grappling with the bumpy transition to electric vehicles and headwinds in the market. Local European consumers are also reluctant to purchase more expensive electric vehicles due to factors such as inadequate charging infrastructure.

Furthermore, it is worth noting that both Mercedes-Benz and BMW lowered their performance expectations in September this year. Recently, Volkswagen, Europe's largest automaker, is considering the first closure of its factories in Germany to cut costs