Even while deliveries of electric vehicles increased during the same period, BMW AG reported an almost 20% fall in sales in the second quarter.
The Munich-based automaker reported Friday a 28% reduction in China and a drop in sales to around 563,536 BMW, Mini, and Rolls Royce automobiles. Sales dropped by almost one-fifth in both Europe and the US.
In This Article...
Global sales for the BMW Group fell 13.3% in the first half of 2022.
The first part of the year was bittersweet for the BMW Group. As BMW and MINI delivered 75,891 EVs through June, or 110.3% more than in H1 2021, sales of fully electric vehicles more than doubled. When plug-in hybrids were included, the number of electrified vehicle deliveries increased by 20.4% to 184,553 units. Additionally, during the first half of 2022, sales at Rolls-Royce increased by 6.8%.
The BMW Group, on the other hand, had a 13.3% reduction in deliveries, with 1,160,443 units delivered to customers in H1 2022. Sales of the primary BMW brand decreased by 13.7% to 1,016,541 automobiles, while MINI’s sales decreased by 10.9% to 140,711 automobiles. The M division, which includes sales of M Performance vehicles, delivered 81,198 vehicles, or 2.6% fewer than during the same time period in 2017. BMW Motorrad essentially held steady, with a change of 0.1% to 107,555 motorcycles.
BMW wants to emphasize that, despite this double-digit decline, it continues to be the premium auto market’s top seller. When comparing how the Group performed in other parts of the world, China saw the largest fall in deliveries, which was followed by Asia (-14.7%) and Europe (-13.9%). According to preliminary data, shipments to Germany decreased by 12.4% to 124,350 units.
There are other factors at play besides just decreased demand. The daily operations of the BMW Group are still being impacted by supply shortages, which has an impact on wait times. Some consumers choose to switch to a rival manufacturer that can supply a car sooner because they are just unwilling to wait for a new automobile for such a lengthy time.
Sales of larger, more expensive automobiles with better profit margins are prioritized, which results in an automaker selling fewer vehicles but still earning a profit. In these busy times when businesses are making every effort to deliver as many vehicles as possible, there is more to these sales charts than simply the simple numbers. The financial reports will seem better at the conclusion of the fiscal year the more expensive these autos are.
Overall, plug-in automobile sales climbed by 14.3% year-over-year.
In the second quarter of 2022, the BMW Group announces global vehicle sales of 563,536, a decrease of over 20% from the same period in 2017. The H1 result was 1,160,443 (down 13% year over year), which is a result of the comparatively mediocre Q2 performance.
The almost 28% sales decline in China to 170,220 units (nearly 19% in H1 to 378,727) is one of the most concerning trends for BMW.
Positively, plug-in electric vehicle sales increased by 14.3% year over year in Q2 to 94,884, setting a new record share of 16.9% of the overall volume.
Sales of all-electric vehicles increased by 85%, but the plug-in hybrid market declined by 11% year over year, which had an impact on the final outcome.
The only models with increasing sales so far this year were BMW’s battery-powered cars and the X7 SUV.
Being a conventional vehicle manufacturer nowadays is difficult. The kind of automobile companies that you and I might shop with are having difficulty with production backlogs, delays, and component shortages while luxury companies like Lamborghini are touting record sales. For all of the world’s automakers, these problems are hurting sales and earnings. Let me quickly fetch my small violin.
According to BMW’s most recent financial statistics, these obstacles have hurt sales of nearly every model in its lineup. BMW recorded a decline in deliveries of 13.7 percent, or 1,016,228 fewer vehicles, in the first half of 2022.
The company’s smaller models suffered the most from the decline, including the X1 and X2 crossovers, which plummeted 24.1 percent at the beginning of this year, and the 3 and 4 Series, which were down 34.3 percent.
Except for the X7 SUV and its electrified lineup, BMW recorded a decline in deliveries for every vehicle in its lineup. Yes, deliveries of battery-powered BMWs more than doubled to 57,462 units, while X7 sales increased by 3.5%.
Skincare designed just for YOU Geologie will demystify skincare and pair you up with a routine that fits your requirements and lifestyle by working with dermatologists and cosmetic chemists for genuine active ingredients.
In the first half of the year, sales of BMW’s main line of I vehicles—which includes the iX electric SUV, the i3 hatchback, and the i8 sports car—rose 102.4 percent to 26,037. Sales of the automaker’s full line of electric vehicles increased by more than 150 percent.
According to BMW, the introduction of the iX had a part in this growth’s acceleration globally. BMW sells the iX SUV and the i4 electric car in the US; the i7 will follow later this year.
Additionally, the company sells plug-in hybrid versions of several models, such as the 3 Series, 5 Series, and X5 SUV. However, compared to the same time last year, sales of its plug-in vehicles decreased marginally.
EVs and plug-in choices were well-liked across the other brands in the BMW group.
In spite of a 37 percent increase in sales of its all-electric Mini Cooper SE, Mini’s overall deliveries were down by 5%. For Mini, more over 18 percent of all deliveries worldwide were electric automobiles.
In the first quarter, BMW Group sales fell by 6.2%, although M and electric deliveries increased.
Sales for the BMW Group fell 6.2% year over year in the first quarter to 596,907, according to the business, which attributes the decline primarily to pandemic-related lockdowns in China and ongoing turmoil in Europe. Following a record-breaking year that included a record-setting first quarter, deliveries decreased in the first quarter of 2022. The BMW Group sold 636,606 automobiles total at this time last year, a 33.5% increase from 2020 and the biggest first quarter in the history of the business. These vehicles included BMW, Mini, and Rolls-Royce models.
The first quarter’s difficulties did not appear to have a negative impact on sales of BMW’s electric vehicles or any of its M and M Performance variants. Highlights include 149.2% year-over-year growth in sales of fully electric BMW and Mini models such the i4, iX, and Mini SE, which accounted for 35,289 deliveries and 5.91% of first-quarter BMW Group sales. BMW M vehicle deliveries grew 3.1% to 39,055 and represented 6.54% of sales.
“Our primary goal is to increase electromobility. We increased the rate of growth from 2021 even more in the first quarter, and we are currently on track to reach our lofty growth objectives for fully-electric vehicles in 2022 “said Pieter Nota, a member of the BMW AG Board of Management who is in charge of sales, brands, and customers. “Worldwide, there is still a strong demand for our creative and inventive products, which come in a wide range of drivetrain options to meet any customer need. We anticipate sales for the entire year 2022 to be on par with last year due to this robust product lineup, our high level of flexibility, and operational excellence, despite the difficult global situation “Nota went on.
With chips and the energy crunch in focus, BMW sees 2022 as turbulent.
According to CEO Oliver Zipse, new inbound orders were starting to decline but order books were still full for the upcoming few months.
Finance chief Nicolas Peter stated that there was a particularly high demand for electric vehicles. According to him, the luxury automaker was on track to achieve its objective of tripling all-electric vehicle sales by the end of the year and anticipated total sales growth of 5% to 10% in the second half, supported by robust Asian markets.
BMW anticipates that year-end deliveries will fall short of the 2.52 million record highs set in 2017.
The potential of the war in Ukraine spreading or the possibility of tighter sanctions against Russia were not taken into account in its estimate.
The development of the supply situation, not just for semiconductors but also for energy supplies in Europe, will be a key aspect, according to Zipse.
Stifel analyst Daniel Schwarz described the outlook as “quite dismal,” and Berstein Research observed that BMW was the first automaker to express concern about demand.