BMW EV Sales Outpace German Rivals, Bucking Trend of Slowing Demand

By David Sachs

BMW's electric-car sales outpaced those of its German rivals in the first quarter and defied the slowdown in demand for zero-emissions vehicles.

The German luxury-car maker said Wednesday that sales of fully-electric vehicles surged compared with a year ago, crediting balanced growth across all major regions. Mercedes-Benz Group and Volkswagen Group both reported declines in EV sales Wednesday.

The increase comes as consumers pull back from EVs due to fading government incentives and stubbornly high borrowing rates. Demand for EVs in Europe is lagging compared with last year, according to the European Automobile Manufacturers' Association. EV growth in China--the biggest car market in the world--slowed in the first quarter, according to the China Passenger Car Association.

BMW delivered 82,700 fully-electric vehicles in the first quarter, a 28% rise from a year ago, it said. Mercedes-Benz said EV sales slipped 9% to 50,500, partly blaming the end of tax breaks for consumers in its home country of Germany. Meanwhile, Volkswagen Group EV deliveries fell 3.3% worldwide to 136,400. A leap in China sales failed to overcome a drop in Europe and the U.S., the company said.

Still, BMW's share of vehicles powered solely by batteries slipped to 14% of all sales, down from 18% in the fourth quarter of last year. Investors can expect BMW EV growth to slow overall this year as fully-electric vehicles, which are less profitable than gas-burning cars, weigh on margins, Citi analysts said in a research note.

BMW's sales surge came after EV-maker Tesla reported last week a sales drop of 8.5%--its first on-year decline since 2020.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

April 10, 2024 08:18 ET (12:18 GMT)

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