German carmaker BMW’s sales of fully electric vehicles (EVs) at its core brand surged in the first quarter, outperforming rivals Tesla and Mercedes-Benz, which have struggled to cope with faltering demand. 

Deliveries of battery-powered models such as BMW’s i4, iX1 and i7 jumped 41 per cent in the three months to March compared with the same period in 2023, the company said on April 10. The results helped group EV sales rise by 28 per cent as it hailed the delivery of its millionth fully electric vehicle.

BMW’s results contrasted with the broader slowdown in demand for EVs, particularly in Europe, where battery-powered cars have flattened as a share of overall sales after governments withdrew incentives for EV purchases.

Mercedes-Benz Group said on April 10 its EV sales fell 8 per cent in the first quarter, after Tesla earlier in April reported its first year-on-year sales drop since 2020. 

EVs made up roughly 15 per cent of BMW’s total deliveries in 2023 and are expected to rise to 20 per cent in 2024. The company aims to boost that share further in 2024 with half a million EV sales, drawing on 15 fully electric models across its brands. 

BMW is, however, facing stiff competition in China, its biggest market, where a subdued economy and price war led by Tesla is weighing on the industry. Sales of BMW and Mini brand vehicles in China declined 3.8 per cent in the first quarter, while deliveries increased 5.5 per cent in Europe and 1.2 per cent in the US during the same period.

BMW delivered a total of 594,671 vehicles in the first quarter, a rise of 1.1 per cent on the same period in 2023.

Mercedes-Benz saw overall sales decline to 463,000 cars during the first quarter because of significant supply chain issues and model changes in Asia, where deliveries dropped 15 per cent.

First-quarter sales in Europe were down 2 per cent, and in North America, they dropped 1 per cent, Mercedes-Benz added. BLOOMBERG, REUTERS