German automakers BMW AG and Volkswagen AG have reported a significant decline in global sales during the second quarter. This information is reported by Bloomberg.
The primary factor contributing to this negative trend is a profound downturn in the Chinese market, where Porsche and Mercedes-Benz have also encountered similar challenges recently.
The crisis in China has most severely impacted BMW, with deliveries of BMW and Mini brands in the Asian country plummeting by 30%.
Consequently, the Bavarian automaker has already intensified cost-cutting measures and revised its financial forecast for 2026 downwards.
The company is attempting to offset the drop in demand in China by introducing models on the new Neue Klasse platform (including the iX3 electric crossover) and by boosting electric vehicle sales in Europe and the United States.
Key reasons for the crisis affecting European brands include China’s prolonged real estate sector recession, which has undermined the financial capacity of affluent buyers, as well as intense competition from local manufacturers (notably BYD).
Additional pressure on the European automotive industry stems from high energy costs in Europe and Donald Trump’s tariffs in the United States.