The German car industry is being hit hard by a sharp slowdown in demand in China and for electric cars in Europe, which has triggered a wave of profit warnings. BMW and Mercedes and Volkswagen recently lowered their earnings forecasts.
Meanwhile, luxury brand sales in China deteriorated for all three luxury carmakers in the third quarter.
BMW and Mini deliveries fell by almost 30 percent during this period.while Mercedes sales dropped by 13%. after declining spending on luxury goods affected demand for expensive car models such as S-class and Maybach sedans. Volkswagen’s luxury sports car brand was up around 19%. decrease.
BMW and Mini sales fell by 1/3
BMW and Mini brands decline by 30%. in China This is not the first negative result on this market this year, but the decline has accelerated significantly recently. In the first and second quarters of this year, sales fell by less than 5%.
The Chinese crisis caused the overall sales result of the BMW Group to drop by 13 percent in the third quarter. worse than last year. In addition, BMW had a serious problem with the braking system, which according to the company also affected the level of deliveries.
Mercedes sales are falling slightly slower
For Mercedes, there was an overall 12 percent decline in sales in the last quarter represents a failure to continue to push higher in the expansion of top-end cars in the Chinese market.
This is also another warning sign for the entire German automotive industry, which is struggling with the transformation towards electric cars.
Mercedes’ latest electric vehicles have received a lukewarm reception from Chinese consumers. More and more young drivers in China choose domestic brandswhich are seen as having more advanced digital and in-car entertainment technology.
Sales of the Porsche Taycan dropped the most
Porsche, Volkswagen’s luxury sports car brand, delivered 13,279 vehicles in China, an increase of approximately 19 percent. less than the same period last year, the company said. This decline was caused by a sharp decline in interest in the Macan, Panamera and electric Taycan.
Deliveries of the Taycan, one of two fully electric models offered by Porsche, fell by 47 percent during this period.
Porsche’s global deliveries fell by 7 percent. in the first nine months of the yearmainly due to 29 percent decline in China and 5 percent decline in North America.