BMW's Q2 Sales Stagnate as EV Deliveries Decline and China Market Weakens Amidst Fierce Competition
Key Insights
BMW's global vehicle deliveries increased marginally by 0.4% in Q2 2025, reaching 621,271 units, primarily due to gains in European and U.S. markets.
The company's battery electric vehicle (BEV) sales declined sharply by 21.1% year-over-year, indicating challenges in EV adoption or competitive positioning.
BMW experienced a significant 14% drop in sales within the Chinese market, reflecting intense competition from local electric vehicle manufacturers.
The Mini brand showed robust growth, with global sales up 33% and U.S. sales increasing 29.1%, providing a positive segment amidst overall mixed results.
Munich, Germany – BMW AG reported marginal growth in global vehicle deliveries for the second quarter of 2025, with a 0.4% increase to 621,271 units, primarily driven by gains in Europe and the U.S. However, the German automaker faced significant headwinds in China, the world's largest electric vehicle (EV) market, where shipments plummeted by 14%. This decline underscores the escalating competition from domestic EV manufacturers, such as BYD, which continue to capture substantial market share.
Despite the overall global growth, BMW’s battery electric vehicle (BEV) sales experienced a notable downturn, decreasing by 21.1% compared to the same period last year. The company delivered 11,094 BEVs in Q2 2025, a significant drop from 14,081 units in Q2 2024. This contraction in EV sales, alongside the broader market challenges, presents a critical juncture for BMW's electrification strategy amidst a global push for sustainable mobility solutions.
In contrast to the Chinese market, BMW and Mini brands registered positive sales momentum in Europe and the United States. U.S. sales specifically saw a 1.4% increase, even with the imposition of President Trump’s 25% auto tariffs on imported vehicles. The Mini brand demonstrated particularly strong performance, with its U.S. sales surging by 29.1% and global sales jumping 33% in the quarter, signaling robust demand for its compact premium offerings.
BMW CEO Oliver Zipse expressed cautious optimism regarding a potential stabilization in the Chinese market during the latter half of the year. However, the Q2 results mirror a broader trend observed across German luxury automakers, including Mercedes-Benz and Volkswagen, which have also reported substantial sales declines in China. This collective struggle highlights the profound impact of localized competition and evolving consumer preferences within the highly dynamic Chinese automotive landscape.
The current market conditions necessitate a re-evaluation of global sales strategies and a heightened focus on product differentiation and supply chain resilience. The disparity between strong Mini performance and declining BMW BEV sales suggests a complex interplay of brand perception, pricing strategies, and the pace of EV adoption across different segments and regions. Industry analysts will closely monitor how BMW and its peers adapt their electrification roadmaps and market approaches to navigate these multifaceted challenges.