BMW Group delivered approximately 591,000 vehicles globally in Q2 2026, down 4.9% year-over-year. China market sales reached 117,817 units, plummeting 30.2% YoY, becoming the biggest drag on global performance. Europe and Americas maintained growth but could not offset Asia-Pacific decline. The Group slashed full-year guidance in June, with EBIT margin expectations lowered from 4%-6% to 1%-3%.
VDA President Hildegard Müller issued a statement highlighting that high energy prices, taxes, social security burdens, and bureaucracy are eroding Germany's manufacturing competitiveness. She called for opening German production sites to foreign manufacturers including Chinese automakers. Meanwhile, Volkswagen plans to cut 100,000 jobs and close four plants as Europe's auto industry undergoes historic restructuring.
In H1 2026, the German luxury trio (BBA) continued to underperform in the Chinese market. Hit by intensifying NEV competition, price wars, and declining brand premium power, BBA's sales and profits in China saw significant declines. Audi's depreciation rate surged over 10% from the beginning of the year, with some models seeing dealer quotes 100,000-150,000 yuan below MSRP. Mercedes and BMW face similar pressures of halved profits and declining sales. BBA is transforming from a "profit cash cow" to a "strategic burden," entering a full retrenchment cycle in China.
Multiple automotive media confirmed that BMW Brilliance will stop production of China-made i3, i5, and iX1 in July 2026. These three models, based on the CLAR platform shared with combustion vehicles, represent BMW's electric 1.0 era. The brand's future EV strategy shifts to the dedicated Neue Klasse platform, with the new iX3 debuting at the 2026 Chengdu Auto Show.
The all-new BMW iX3 long wheelbase version will begin pre-sales at the 2026 Chengdu Auto Show and officially deliver in Q4 2026. Featuring BMW's new-generation design language, dual-motor AWD, CLTC range exceeding 900km, 10-minute fast charging for 400km range, and Momenta assisted driving system. The Chengdu Auto Show opens August 21.
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