German automotive manufacturers Mercedes-Benz and BMW have released their third-quarter results. While their sales are being affected by the Chinese growth slowdown, some manufacturers are initiating partnership discussions with emerging brands.
Indeed, China spares no one. German luxury car manufacturers Mercedes-Benz and BMW released their third-quarter figures on Tuesday, October 10, revealing divergent trends in the Chinese market.
Mercedes-Benz, faced with supply chain issues and model changes, saw its global sales drop by 4% year-on-year from July to September. The company reported a decline in global figures to 510,600 vehicles in the third quarter, with sales in China dropping by 12% compared to the previous year. However, the company is maintaining its annual sales growth forecasts stable.
“The volumes were impacted by the model change for the E-Class and a bottleneck in the supply chain that limited GLC (luxury SUV model) availability,” the company stated.
On the other hand, BMW fared better and recorded a 5.8% increase in global retail sales for the same period, reaching 621,699 vehicles. Retail sales in China for BMW and Mini models, however, decreased by 1.8%, while global retail sales increased by 5.1% year-to-date.
Challenges for Automakers in China
Luxury car manufacturers have faced challenges in China this year due to weakened demand and increased price competition. Nevertheless, passenger car sales returned to growth in August. BMW mentioned that despite the drop in third-quarter sales, sales in China had increased by 1.7% since the beginning of the year.
Meanwhile, Mercedes-Benz announced that its total global sales had increased by 2% year-on-year, in line with its annual forecasts of stability compared to the previous year. However, the company does not disclose details on retail sales.
“For our next wave of the electric offensive, starting in 2025 with the new E architectures, China is absolutely central,” said the group’s CEO, Ola Källenius. “We need to master electric technology as perfectly as digitization. This is what our customers expect.”
Discussions between Nio and Mercedes-Benz
Discover our plans Subscribe for 1€ Become an active member of the community of luxury leaders.
To continue reading this article, subscribe or log in to your account
Read also>AUTOMOTIVE: MERCEDES AND FORD RAISE THEIR ANNUAL SALES FORECASTS
Featured photo : ©Press
