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Unexpectedly, BMW's electric car sales surged amid declines at Tesla and Volkswagen

Unexpectedly, BMW's electric car sales surged amid declines at Tesla and Volkswagen
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BMW AG significantly increased sales of fully electric cars in the last quarter - quite unexpected success for the German brand, which has a unique reputation, especially sharply contrasting with the less optimistic results of Tesla and Volkswagen.

In January-March, sales of BMW i4, iX1, and i7 jumped by 41% compared to the same period in 2023, which in turn contributed to a 28% growth in the group's electric vehicle sales.

High sales of BMW electric vehicles are a complete opposite to the seasonal slowdown on a global scale, especially in Europe, where the share of battery electric vehicles in total sales plateaued after the cancellation of state incentives and stimuli. Volkswagen AG reported a 3% decline in sales in the first quarter - successes in China could not compensate for a 24% drop in Europe. Sales of electric vehicles by Mercedes-Benz Group AG fell by 8% in the first quarter due to supply chain issues, the gradual phase-out of the two-seater Smart Fortwo, and sluggish demand in Germany after the cancellation of state subsidies. As for Tesla, the market leader reported a quarterly sales decline for the first time in four years.

BMW vs Mercedes-Benz vs Audi

BMW was one of the first to start electrifying its model range, with the release of the i3 city car in 2013. Despite mixed reviews and ambiguous perception, the BMW i3, along with the Nissan Leaf and others, can confidently be considered cult models of the first generation - its total sales reached 250,000 by the end of 2022. Since then, BMW, unlike many others, has not slowed down and has actively expanded its offerings. And now it is reaping the rewards. Specifically, one can recall the premium sedan i4, which is selling in large quantities, and the new crossover iX2.

As for the challenges, BMW is now facing tough competition in China, the largest sales market, where the weakened economy and price war unleashed by Tesla are putting pressure on the industry, especially in the premium segment. Auto sales of BMW and Mini in China decreased by 3.8%, while in Europe and the USA they grew by 5.5% and 1.2% respectively.

In 2023, electric vehicles accounted for 15% of BMW's total sales, and this year their share, as planned, should grow to 20%. With a fleet of 15 fully electric models across all BMW brands, BMW aims to achieve sales of 500,000. Against the backdrop of the success of the EV direction, BMW's shares added another 1.3% on the stock exchange on April 10, increasing the year-to-date gain to 14%.

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