BMW (BMWG.DE) is optimistic about achieving higher car sales in China this year, despite a localized price competition within the electric vehicle (EV) segment and relatively subdued demand across the market, as stated by the luxury automaker’s Chief Financial Officer (CFO) during an interview at the IAA car show in Munich.
In his first interview since assuming the role of finance chief in May, Walter Mertl informed Reuters that BMW managed to achieve a 3.7% growth in China during the first half of the year, surpassing the overall performance of the world’s largest auto market. Mertl also expressed confidence that this positive trend would persist. He commented, “We are currently observing and assuming that we will surpass last year’s sales figures in China.” He noted that the price competition primarily impacted the lower-priced segments of the auto market, where BMW is not prominently positioned.
In July, China experienced its second consecutive monthly decline in passenger vehicle sales, despite discounts and government incentives aimed at attracting consumers, who remain cautious amid economic uncertainties and a prolonged housing market downturn.
Price reductions initiated by Tesla (TLSA.O) early in 2023 have spread to several other brands in China, with General Motors (GM.N) and Volkswagen (VOWG_p.DE) also implementing fresh price cuts during the summer.
BMW recently revised its 2023 sales outlook for the group, expecting solid growth, defined as a range between 5% and 9.9%. In 2022, the company’s vehicle sales had declined by 4.8%, totaling approximately 2.4 million vehicles, with a 6.4% decrease in China, where sales reached 791,985 units.