European EV makers losing ground to local Chinese brands

SHANGHAI: BMW AG's sales stagnated in the second quarter as European carmakers continued to lose ground to local producers in China, the world's biggest electric vehicle market.

Global group deliveries inched up 0.4% from a year earlier to 621,271 vehicles, the German manufacturer said Thursday.

While the BMW and Mini brands saw gains in Europe and the US during the three months through June, deliveries in China dropped 14%.

BMW's results echo those of its German peers, which have been ceding market share in China to domestic producers led by BYD Co.

Mercedes-Benz Group AG's sales in the country fell 19% in the second quarter while Volkswagen AG's EV deliveries there dropped by nearly a third.

BMW Chief Executive Officer Oliver Zipse said in March that he anticipated a stabilisation of China sales in the second half of this year.

BMW's MINI brand posted a 33% increase in global sales to 69,163 vehicles, while deliveries of the group's hybrid and fully electric models rose 10%.

President Donald Trump's 25% tariffs on imported cars are adding another threat to profits.

Sales of BMW and MINI brand cars increased 1.4% in the US during the second quarter.

MINI models built in the UK face a lower tariff of 10%.