BMW Suffers First Sales Decline in China in Over a Decade
BMW’s China deliveries fell by 5.5 percent in May, marking the first monthly drop for the brand in the country since 2005 and highlighting pressure on luxury carmakers.
BMW’s core brand posted a 5.5 percent drop in China deliveries in May, the first monthly decline in more than ten years for the marque in the world’s largest car market. The last time BMW and Mini combined saw negative sales in China was January 2005, according to company figures.
The drop comes after a long period of continuous growth for BMW in China, where the brand has been a central player in the premium segment. The May decline follows a modest 0.6 percent increase in April, suggesting a shift in momentum. BMW China’s overall sales, including Mini, fell 4.2 percent in May, despite Mini posting a 17.8 percent jump for the month.
Pressure from market and regulation
Several factors have contributed to the downturn. China’s economic growth has slowed to its lowest rate since the 1990s, affecting consumer confidence and luxury spending. The Chinese government has also maintained pressure on premium car prices, aiming to increase affordability and curb conspicuous consumption. In addition, a pilot scheme allowing unauthorised dealers to sell imported vehicles has created further uncertainty for established brands and their dealer networks.
BMW has also faced escalating tensions with its Chinese dealer partners, who have pushed back against manufacturer targets and discounting practices. The combination of economic, regulatory and channel pressures has made China a more challenging environment for premium marques in 2015. Other global brands have reported similar pressures, with Chevrolet recently noting China as its third-largest market but also facing increased competition (see /china-has-become-chevrolets-third-largest-market).
Global sales remain strong
BMW’s global performance has not mirrored the Chinese slowdown. Worldwide, the BMW brand grew 4 percent in May to 159,129 units, driven by ongoing recovery in Europe and strong demand in the Americas. Mini’s global sales also contributed to a 5.9 percent increase for BMW Group, reaching 188,287 vehicles for the month, its best ever May result. In the US, BMW and Mini combined sales rose 4.3 percent, while European sales jumped 8.4 percent.
