BMW Leads German Premium Carmakers in Sales Growth

BMW reported on Tuesday the strongest sales performance among Germany’s top three premium carmakers for the first half of the year. The company achieved a 2.3% increase in total sales to nearly 1.1 million vehicles.

BMW significantly boosted its battery-electric vehicle (BEV) deliveries, with sales surging 34% to nearly 180,000 cars during the same period.

Mercedes-Benz Struggles:

In contrast, Mercedes-Benz faced challenges with electric vehicle sales, selling approximately half as many BEVs at 93,400, marking a 17% decline from the previous year. The total sales of Mercedes-Benz core brand dropped by 6% to 960,000 vehicles.

Market Dynamics and Strategies:

Carmakers, including Mercedes-Benz, Porsche, and Audi, have been reducing prices of electric vehicles, especially in China, to stimulate sales amid subdued demand and increased competition in the electric vehicle segment.

Outlook for Other Premium Brands:

• Audi: Sales fell by 8% to 833,000 vehicles in the first half of the year, with BEV sales up marginally by 1.3%.
• Porsche: Experienced a 7% decline in sales to 155,900 vehicles, with a significant 33% drop in China. The company anticipates improved revenue in the second quarter with the launch of new models, targeting a margin of 15% to 17%.

Analysts’ Views:

Analysts, following discussions with Porsche AG executives, expect improved performance in the upcoming quarters due to enhanced availability of high-end models, aligning with forecasted margins of 15% to 17%. Analyst Tim Rokossa of Deutsche Bank expressed positive sentiment towards Porsche’s stock in a recent note.