Mercedes and BMW are reducing the number of vehicles they discard or eliminate.
Mercedes and BMW delivered fewer passenger vehicles to customers during the summer compared to the previous year, with significant declines in China being a major issue for both German manufacturers. BMW, however, is managing to expand its electric vehicle segment, while Mercedes is struggling in this area.
BMW's car sales dropped by 13% to approximately 541,000 units in the third quarter, according to a statement issued in Munich. This drop was largely due to issues with brakes supplied by Continental, leading to a delivery stop for around 320,000 cars yet to be delivered.
Sales declined across all regions, with a particularly sharp drop of 30% in China to 148,000 cars, representing only a quarter of BMW's total sales there. Conversely, European sales only decreased by 1% to 219,000 vehicles. BMW revised its annual forecast in September and now expects a slight decrease in sales and a significant decline in profits. In the first nine months, sales decreased by 4.5% to around 1.75 million cars.
Contrasting Scenes in the Electric Market
Mercedes sold 503,600 vehicles between June and the end of September, a 1% decrease compared to the previous year. However, sales in the revenue-generating top product segment, which includes the S-Class, fell by 12%. In China, Mercedes' sales also decreased by 13% to 171,000 vehicles, still accounting for more than a third of its total sales.
Mercedes' car sales were 4% lower than the previous year with 1.46 million units sold in the first nine months of the year. Similar to BMW, Mercedes experienced delivery problems with supplier Bosch last year but has now resolved these issues.
The BMW Group and Mercedes-Benz are operating in different spheres in the electric vehicle market. BMW is enjoying success with models such as the iX1 and electric Mini, recording a 10% increase in the quarter and a 19% increase in the first nine months to 294,000 electric vehicles sold.
On the other hand, Mercedes' third quarter with its EQ models was a disaster, with sales dropping by almost a third to 42,500 vehicles. By the end of September, around 136,000 electric cars with battery power had been delivered to customers, representing a decrease of about a fifth compared to the same period last year. However, plug-in hybrids are selling well for Mercedes, with a 10% growth in the quarter, largely driven by strong demand in the US.
Dax companies BMW and Mercedes-Benz both faced challenges in their traditional vehicle segments during the third quarter, with significant declines in China being a common issue. Despite these challenges, BMW has managed to expand its electric vehicle segment, selling 294,000 electric vehicles in the first nine months of the year, a 19% increase compared to the same period last year.
Contrastingly, Dax company Mercedes-Benz has struggled in the electric vehicle market, with its third quarter sales of EQ models dropping by almost a third to 42,500 vehicles. However, Mercedes' plug-in hybrids are performing well, with a 10% growth in the quarter.
