*This content was translated by AI.
The BMW Group sold 1.1567 million vehicles globally in the first half of 2026, a 4.2% decrease compared to the same period last year. In China, sales fell by 20.4% to 261,800 units, with the second-quarter decline reaching 30.2%. Meanwhile, Europe and the United States recorded single-digit growth. As a result, China lost its position as the world's largest market for BMW vehicle sales to another region (including all of Europe).
China's share of BMW's total global sales once stood at 33.5% but has recently dropped to approximately 25.5%. During the same period, Mercedes-Benz sold 210,200 units in China, a 28% decline, while Audi sold about 218,300 units, down by roughly 19%.
According to data from the China Passenger Car Association (CPCA), from April 2026 for three consecutive months, the retail penetration rate of new energy passenger vehicles in China exceeded 60%. In June, retail sales of internal combustion engine (ICE) passenger vehicles fell to 600,000 units, a 39% decrease compared to the same period last year. Major models from traditional premium brands were significantly affected. In the first half of 2026, BMW's 5 Series sold 48,000 units in China, down 19.1%, while Audi A6L sales dropped by 29.7% to 59,300 units. Mercedes-Benz E-Class sales reached 61,200 units. Mid-to-large luxury sedans that previously sold over 10,000 units per month are now struggling to maintain their sales levels.
All top 10 best-selling premium sedans in China during the first half of 2026 were environmentally friendly vehicles (new energy vehicles, NEVs). It appears that Chinese consumers' perception of premium vehicles is also changing. There is a clear trend toward focusing on new values such as urban advanced driver assistance systems (ADAS), intelligent cockpits, and high-voltage fast-charging platforms, rather than brand heritage, mechanical performance, or ride comfort.
In the first quarter of 2026, the penetration rate of environmentally friendly vehicles in China was 54.1%, but BMW's NEV penetration rate remained at just 6.2%. Price competition has also intensified. In 2025, BMW's average selling price in China was 341,000 yuan — surprisingly lower than that of local brands such as Nio, Aito, and Denza. At the beginning of 2026, BMW officially reduced prices for more than 30 models. The internal combustion engine model X1 saw a price cut of 70,000 yuan, the all-electric i3 was reduced by approximately 160,000 yuan, and the flagship model i7 was lowered by about 300,000 yuan.
In June 2026, BMW adjusted its annual performance forecast downward for the third consecutive year due to weak market performance. The automotive division's expected operating profit margin (EBIT margin) was also reduced from a previous range of 4–6% to 1–3%. From a distribution perspective, as of the first quarter of 2026, the number of BMW dealerships in China decreased by 33 compared to the same period last year. BMW lowered its wholesale sales targets in advance and adjusted dealer inventory evaluation coefficients and annual sales targets for some dealers by 20–24%.
BMW is currently making large-scale investments in the 'Neue Klasse' (New Class) platform. The domestically produced long-wheelbase iX3, which will adopt this platform, is scheduled to begin pre-orders at the Chengdu Auto Show in August 2026. The vehicle will be equipped with an 800V high-voltage architecture and BMW's sixth-generation eDrive electric powertrain. BMW announced that global orders for this model are approaching 100,000 units. Starting from July 2026, the company plans to halt production of older domestic electric vehicles (i3, i5, iX1, etc.) based on legacy platforms that lag in driving range, charging speed, and smart features. BMW intends to unveil more than 40 new or updated models by 2027.
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*This content was translated by AI.
