BMW’s China Troubles Deepen as Domestic Rivals Gain Ground

4% drop compared to the same period last year. The German automaker delivered just 261,773 BMW and MINI vehicles in the region through June, a stark contrast to the 847,900 units sold during the peak year of 2021. 2% to 117,815 cars. The company is pinning its hopes on new long-wheelbase versions of the iX3 and i3, built specifically for Chinese tastes, but the road ahead looks steep.

The struggle isn’t unique to BMW. Mercedes-Benz saw its Q2 sales in China fall 30% to 98,600 vehicles, with first-half numbers down 28% to 210,200. 6% drop in Q2 to 424,300 units. The rise of local brands like BYD and Nio, offering competitive quality and cutting-edge tech at lower prices, has eroded the market share once dominated by German luxury automakers.

For decades, BMW, Mercedes, and Audi rode a wave of demand in China, but those days are fading fast.

Still, BMW isn’t giving up. The company is ramping up localized efforts, including a Shanghai design studio developing region-specific Neue Klasse electric vehicles. Audi has even launched a separate brand in China, called AUDI, without the four rings. 2% jump in Germany. 4% of global deliveries last year, but that share is likely to shrink as the shift toward domestic brands accelerates.