Sales of completely electric cars under BMW AG’s main brand soared in the first quarter, surpassing those of competitors like Tesla and Volkswagen, who have found it difficult to meet the slowing demand. According to the business, customer deliveries of battery-powered vehicles, including the BMW i4, iX1, and i7, increased 41% in the three months ending in March over the same time in the previous year. As a consequence, group EV sales increased by 28%.
BMW’s performance was in stark contrast to the general downturn in EV demand, especially in Europe, where governments’ removal of incentives for EV purchases has resulted in a flat sales proportion of battery-powered cars overall. Volkswagen AG said that a 24% fall in Europe was not enough to overcome a 3% decline in EV deliveries in the first quarter, despite advances in China. Mercedes-Benz Group AG said on Wednesday that sales of electric vehicles (EVs) decreased by 8% in the first quarter. The company attributed this decline to supply-chain problems, the phase-out of its two-seater Smart Fortwo, and weak demand in Germany as a result of the elimination of state subsidy programs. Tesla said earlier this month that its global sales fell for the first time since 2020.
BMW Bets on EVs, Stock Up Despite Industry Jitters
BMW’s stock has risen 1.3% on Wednesday, bringing its gains this year to 14%. Over the last 12 months, the company has marginally outperformed rival Mercedes-Benz. While Tesla’s shares are 4.4% down, Volkswagen’s are around where they were a year ago. Amidst the uncertainties associated with the shift to electric vehicles, chief executive officers from some of Europe’s largest automakers convened in Brussels to review first-quarter financial results from BMW, Volkswagen, and Mercedes-Benz. Europe must increase demand for electric vehicles (EVs) by developing the infrastructure for charging them, guaranteeing raw material supply, enhancing financing choices, and enacting market incentives, according to Luca de Meo, CEO of Renault SA and president of the ACEA auto industry association.
BMW is relying on the success of EV sales with the introduction of several new battery models, such as the popular i4 sedan and the more recent iX2 SUV. With the creation of the i3 city car, the Munich-based corporation led the way in the transition to electric vehicles (EVs) before many of its rivals, gaining more expertise with battery technology and overcoming the model’s mixed reviews.
Citi analyst Harald Hendrikse said,
“The key thing is that BMW has more of a volume-based strategy than Mercedes. BMW is more willing to compete if the market is more difficult.”
BMW Aims for 20% EV Sales Despite Headwinds in China
EV sales accounted for approximately 15% of BMW’s total deliveries last year, and the company plans to increase that percentage to 20% this year with half a million EV sales, leveraging 15 fully electric models across its brands. Despite this, BMW faces fierce competition in its largest market, China, where a slowing economy and a pricing war spearheaded by Tesla are hurting the industry. In the first quarter of this year, sales of BMW and Mini brand vehicles in China fell by 3.8%, while deliveries in Europe and the US increased by 5.5% and 1.2% respectively.
Volkswagen hinted that EV demand would increase in Europe. According to the firm, orders for completely electric models increased by more than double the amount from the same period the previous year, bringing the total number of orders placed to over 160,000 vehicles.
