BMW Records Sales Decline of 4.9 Percent in Second Quarter

BMW had most recently cited the difficult Chinese market as the reason for a significant profit warning. The ongoing price competition with local manufacturers and the weaker demand for premium vehicles in the People's Republic are weighing heavily on the group.

Asian Markets Collapse

Not only in China, but also in the rest of Asia, business performed poorly in the second quarter. According to the company, the region is one of the main drivers of the negative sales development. Given the size of the market, the slump in China carries particular weight.

A different picture emerges in the United States: There, sales rose by 9.5 percent to 134,405 cars. BMW was thus able to grow against the industry trend in North America and benefit from the continued demand for premium models. In Europe, the group also recorded growth, according to company figures.

The British small-car brand Mini, which belongs to the BMW Group, increased its deliveries in the second quarter by 17 percent to 81,035 cars. The increase was thus significantly stronger than in the core business and was able to offset part of the decline of the main brand.

Sales Director Jochen Goller assessed the development in a differentiated manner: "Trotz weltweiter Herausforderungen konnten wir in den USA und Europa unseren Absatz steigern." The statement underscores management's attempt to offset the positive partial results against the weaknesses in Asia.

Outlook with the New iX3

BMW is confident about the upcoming model change. According to Jochen Goller, the manufacturer is on track to reach 100,000 incoming orders with regard to the new fully electric iX3. The model is considered an important building block in competing with the growing competition from China and the USA.

RBC Capital Markets rated the BMW stock with "Sector Perform" on July 3, 2026. The analysts thus see the stock at the level of the industry average, seeing neither a clear need to catch up nor acute selling signals.

Industry Under Pressure

BMW's German competitors are also under pressure. Mercedes had reported a decline of 6 percent to 511,900 cars for the second quarter on Wednesday. Audi is currently recording a decline of just over 8 percent to 367,139 vehicles. BMW is therefore performing comparatively well in the industry comparison, even though its own sales decline is clearly putting the group under pressure.

Overall, the quarterly figures illustrate the structural problems of European premium manufacturers: While demand in the established markets of the USA and Europe remains stable or grows, providers in China and large parts of Asia are increasingly losing ground. The success of new models such as the iX3 is likely to determine whether BMW can stop the downward trend in the coming quarters.