The BMW Group continues its slippery slope in China, where sales have been falling over the past several years. Demand peaked in 2021 when BMW and MINI delivered a combined 847,900 cars, but subsequently dropped to 626,000 units last year. Unfortunately, 2026 isn’t looking any better, judging by the sales figures published this week.
The two brands’ sales plummeted 30.2% in the second quarter to 117,815 vehicles. Through June, BMW and MINI were down 20.4% to 261,773 units. Still, there’s a glimmer of hope that the Group could turn things around in the foreseeable future. The new long-wheelbase versions of the iX3 and i3 were developed specifically for the Chinese market and could help bring customers back into showrooms.
However, the rise of domestic brands has taken a massive toll on demand for legacy automakers, and it’s not just BMW. Archrival Mercedes is also struggling in China, where sales fell 30% in Q2 2026 to 98,600 cars and are down 28% to 210,200 units for the first six months of the year.
Audi has yet to release its figures, but the broader Volkswagen Group also took a major hit in Q2, with sales dropping 36.6% to 424,300 units. Through the first half of 2026, the automotive conglomerate is down 25.9% to 973,000 units.
It looks as though the gravy train for Germany’s luxury brands in China has reached the end of the line. BMW, Mercedes, and Audi flourished in the region for decades, but those glory days appear to be over. Domestic brands have aggressively closed the gap by improving quality and packing their models with the latest technology at hard-to-beat prices.
However, BMW and its rivals aren’t waving the white flag. The established automakers are doubling down on localized models to lure buyers back. As a matter of fact, Audi now even has a separate brand in China: AUDI, minus the four rings. BMW’s design studio in Shanghai is developing region-specific Neue Klasse EVs. Mercedes is rolling out a growing number of China-only models, including a three-row electric GLC.
Of course, there’s a big world beyond China. The BMW Group has partially offset its decline there by growing elsewhere. H1 2026 sales are up 3.9% in the United States and 3% across the Americas region. Europe is also performing well, with BMW and MINI rising 5.4% through June, including a 10.2% jump in Germany.
Even with sales continuing to slide in China, it remains the BMW Group’s largest single market. Last year, it accounted for 25.4% of global deliveries. Logic suggests that share is likely to shrink, based on the first-half 2026 results.
First published by https://bit.ly/3sM6JoH
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