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%.
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.
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Nissan Motor announced the closure of its Changzhou passenger vehicle plant in Jiangsu Province, with annual capacity of approximately 130,000 units. This is Nissan's second plant closure in China since 2024. Data shows foreign brands' market share in China has dropped below 40%, with Japanese brands experiencing the steepest decline. Analysts attribute this to the rapid rise of Chinese brands and lagging electrification efforts.
Counterpoint data shows global electric vehicle sales in Q3 2025 grew 32% year-over-year. Battery electric vehicles (BEV) continued to dominate, accounting for 2/3 of total EV sales, with BEV sales up 32% year-over-year. BEV penetration reached a new milestone this quarter, accounting for 18% of global passenger vehicle sales, up from 14% in the same period last year. China remains the key growth engine, contributing 60% of global BEV total sales. At model level, Tesla Model Y, Geely Galaxy Xingyuan and Tesla Model 3 became the quarter's best-selling EVs globally.
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