Recently, BMW Group announced its third-quarter sales data. The data shows that its global deliveries totaled 540,882 vehicles, a year-on-year decrease of 13%. In the first three quarters of this year, BMW Group's cumulative deliveries were 1,754,158 vehicles, a year-on-year decrease of 4.5%. In the Chinese market, BMW's performance was particularly poor, with sales plummeting 29.8% year-on-year to just 147,691 vehicles sold.

The significant decline in BMW's sales in China is the result of a combination of factors. First, BMW announced in July that it would withdraw from the price war and raise prices, intending to tighten terminal prices, protect dealer profits, and maintain brand image. However, this strategy directly led to a further decline in sales, with August sales plummeting 40% year-on-year, and the downward trend did not slow down until September.

Previously, BMW Group urgently recalled 1.5 million vehicles due to brake system failures. Although there were corresponding solutions, it also had a negative impact on the outside world. At the same time, BMW's sales in its "home" markets of Germany and the United States also declined, with declines of 8.8% and 9.2%, respectively.

Image from BMW official

BMW's sales dilemma is not unique, as the Mercedes-Benz Group is also facing challenges. In the third quarter, Mercedes-Benz sold a total of 594,600 new vehicles globally, a year-on-year decrease of 3%. In the Chinese market, Mercedes-Benz's deliveries also declined by 13% year-on-year, making it the market with the largest global decline.

In contrast, Germany saw a year-on-year decline of 7%, while the United States saw a year-on-year increase of 33%. By the end of the third quarter, the Mercedes-Benz Group had delivered a cumulative total of 1,763,200 new vehicles, a year-on-year decrease of 5%. Among them, Germany saw a year-on-year decline of 13% to 149,700 vehicles, China saw a year-on-year decline of 10% to 512,200 vehicles, while the United States saw a year-on-year increase of 9%.

The decline in sales of BMW and Mercedes-Benz reflects the challenges faced by overseas luxury brands in the Chinese market. With the rise of Chinese independent brands and the rapid development of new energy vehicles, consumers have more diverse choices. The Chinese market today is no longer the same as it was in the past. With the development of the automotive industry and the rise of independent brand new energy vehicles, consumers have more options and are no longer limited to what is offered by joint ventures in the era of joint ventures. Price increases do not help sales, nor do price decreases. Price cuts that make headlines may be BMW's only significant moves recently.

The rise of independent brands has not only gradually occupied the market share previously dominated by overseas luxury brands but has fundamentally changed consumers' car-buying preferences. Once, the functionality of cars was the focus of consumers' attention, but now intelligence has become the new benchmark.

Behind this transformation is the transformation of Chinese independent brands from followers to leaders. They not only offer a rich selection of intelligent options in terms of configuration, such as "refrigerators, color TVs, large sofas, and intelligence," but also demonstrate strong market competitiveness with cost control and policy support. The low operating costs of electric vehicles and government support have further accelerated this trend.

In the past, foreign brand models often required additional payments to be delivered, but now, independent brand electric vehicle models are attracting the attention of more and more consumers with their high cost-effectiveness and advanced intelligent configurations. The rise of Chinese independent brands is not just a battle for market share, but also a profound reshaping of automotive consumption trends, drawing more people to independent brand electric vehicle models and ending the days of foreign brand models requiring additional payments for delivery.

Source: Lei Technology