Core Insights - BMW's sales in China continue to decline, exacerbated by tariff impacts, with a reported 15.5% drop in the first half of the year [2][3][7] Financial Performance - In the first half of 2025, BMW's global sales exceeded 1.2 million units, a slight decrease of 0.5% year-on-year [1] - Revenue for the first half of the year was €67.685 billion, down 8% year-on-year, while net profit fell by 29% to €4.015 billion [2] - The EBIT margin for the automotive business decreased by 2.4 percentage points to 6.2% [2] Market Performance - The Chinese market was the largest single market decline for BMW, with deliveries dropping to 318,000 units [2][7] - Despite overall declines, BMW's electric vehicle sales rose, with over 220,000 pure electric vehicles delivered, a 15.7% increase year-on-year [4] - In Europe, BMW's electric vehicle penetration rate reached 34.8%, with a market share close to 40% in the first half of the year [5] Strategic Initiatives - BMW is focusing on electric vehicle development, investing over €4 billion in R&D for new generation technologies and the Neue Klasse platform [6] - The company plans to launch 40 new models by 2027, emphasizing electric vehicles [6] - BMW is collaborating with local Chinese suppliers to enhance its technology offerings and adapt to local market demands [9] Challenges and Outlook - Tariff pressures are expected to continue affecting BMW's profitability, with a projected EBIT margin decline of approximately 1.25% for 2025 [9][10] - Competition from local Chinese brands is intensifying, with expectations of continued sales declines in the Chinese market [11]

BMW will take on Tesla with a new line of EVs offering longer range and high-performance software. “This will be the benchmark of the industry,” BMW’s CEO says. Read more: https://t.co/nMuYgGjU3Y📷: Jana Islinger/Bloomberg https://t.co/yMuUj29W6A ...

BMW is striking back at Tesla with longer-range EVs, CEO Oliver Zipse tells @TomMackenzieTV https://t.co/QJvZkTUVeK https://t.co/0YIdF9tXKb ...

Core Insights - The German luxury car trio, BMW, Mercedes-Benz, and Audi (BBA), is facing unprecedented challenges in the transition to electric and intelligent vehicles, particularly in the Chinese market [2][7] - BBA is launching a comprehensive counterattack by collaborating with local tech firms, introducing electric models tailored for Chinese consumers, and enhancing their retail strategies [2][4][7] Intelligent Technology Development - BMW has partnered with Momenta to develop a China-specific intelligent driving solution, while Mercedes-Benz and Audi have also engaged with Momenta and Huawei, respectively [3] - BBA's strategies reflect different paces and considerations in their transformation, with Audi's collaboration with Huawei being the most extensive [3] - Sales data indicates a significant decline in BBA's performance in China, with BMW's sales down 15.5%, Mercedes-Benz down 14%, and Audi down 16.78% in early 2025 [3] Electric Vehicle Strategy - BBA is intensifying its electric vehicle (EV) offerings, with Mercedes-Benz planning to launch 10 pure electric models in the next two years, and BMW's Neue Klasse platform set to produce its first model in China by 2026 [4] - The electric vehicle strategy shows strong localization, with tailored designs and features for the Chinese market [4] - Despite maintaining a leading position in the fuel vehicle market, BBA's share in the 300,000 yuan and above segment has dropped from 72% in 2021 to 39% in 2025 [4] Channel and Service Innovation - BBA is transforming its retail strategies to enhance customer experience, with initiatives like Mercedes-Benz's EQ experience center and BMW's future mobility experience center [4] - The traditional dealership model is being re-evaluated to meet the demands of the electric vehicle era [4] Competitive Challenges - BBA faces significant challenges in building sustainable competitive advantages, including high costs, changing consumer perceptions, and the need for an integrated ecosystem [5][6] - The cost of BBA's electric models is generally 20% higher than that of domestic brands, with specific examples highlighting the cost disparity [6] - Consumer preferences are shifting towards intelligent technology, with 47% of younger buyers prioritizing smart features over brand prestige [6] Strategic Adjustments - BBA is adjusting its strategies in China by empowering local teams and establishing design centers to better understand consumer preferences [6][7] - These strategic shifts reflect a deeper recognition of the Chinese market, although the effectiveness of these changes will take time to assess [6][7]

Investment & Strategy - BMW's investment in its new architecture is the largest single investment ever made, exceeding €10 billion last year [1][3] - The company views this investment as a self-fulfilling prophecy, with widespread internal support [2] - BMW anticipates a profitable future from this platform, with iX3 deliveries expected in the first quarter of 2026 [3] Market & Competition - BMW aims to increase its global market share with its new electric car, alongside its existing combustion engine and plug-in hybrid X3 models [4] - The company believes its new car will be the industry benchmark in terms of performance and technology [5] - BMW expects to gain market share from Tesla, citing Tesla's sales decline in Europe, including double-digit drops in Germany and France [5][6] Technology & Performance - BMW emphasizes the first-mover advantage of its new car, highlighting its charging speed, range, and energy efficiency of 15 kilowatt hours per 100 kilometers [6][7] - The company believes its brand strength and high-quality recognition will give it an advantage over new entrants in the electric car market [8] Brand Perception & Customer Shift - BMW believes the pendulum is swinging back from Tesla to BMW, noting that in Europe, BMW already sells more electric cars than its competitor [8][9] - A 2019 survey indicated that many drivers were switching from BMW to Tesla Model 3s, but the trend is now reversing [8]

Core Insights - The Chinese automotive market is undergoing a silent transformation, with joint venture automakers rebounding after three years of declining market share, showing a significant recovery in the first half of 2025 [2][3] - The resurgence of joint venture brands is attributed to their strategic restructuring and adaptation to market trends, including deep operations in the fuel vehicle market and localization of new energy technologies [2][4] Joint Venture Recovery - In the first half of 2025, major joint venture automakers reported impressive sales figures, with FAW-Volkswagen achieving a cumulative sales of 436,100 units, a 3.5% year-on-year increase, and FAW Toyota seeing a 16% increase with 377,800 units sold [3] - The strong performance of fuel vehicles has been a key driver of this recovery, with models like the Volkswagen Sagitar and Magotan showing significant sales growth [3][4] Pricing Strategy - The adjustment of pricing strategies has been crucial for the recovery of the fuel vehicle market, with average promotional discounts for joint venture fuel vehicles reaching 23.1% in June 2025, nearly doubling from 13% in 2023 [4] - Many joint venture automakers have adopted a "one price" strategy, enhancing product competitiveness and reshaping consumer preferences [4] Channel Optimization - The optimization of distribution channels has injected strong momentum into terminal sales, with FAW-Volkswagen focusing on dealer return on investment and prioritizing channel health in its strategic agenda [4] - FAW Toyota's direct sales model for the Corolla has alleviated pricing competition among dealers while enhancing service quality [4] Localization and R&D - Joint venture automakers are restructuring their competitiveness through deep localization strategies, with a focus on local R&D and decision-making processes [6][8] - The shift towards local teams leading product development is evident, with new models like Nissan's N7 being entirely developed by Chinese teams [6] Dynamic Technology Adjustments - The ability to dynamically adjust technology routes is a significant aspect of the transformation, with Volkswagen's recent embrace of range-extended technology marking a notable shift in strategy [7] - The market is witnessing a surge in range-extended vehicle sales, with a 78.7% year-on-year increase in 2024, indicating a growing acceptance of this technology [7] Electric Vehicle Surge - Joint venture automakers are preparing for a wave of electric vehicle launches, leveraging local technology platforms to regain market influence [8][9] - Major brands are collaborating with Chinese tech companies to enhance their smart driving systems, ensuring competitiveness in the electric vehicle market [9] Conclusion - The rebound of joint venture automakers is not coincidental; it reflects a survival evolution in the Chinese market, where local technology and consumer demands are reshaping the automotive landscape [10]

瑞银集团：将宝马目标价从90欧元上调至103欧元。 ...

Core Viewpoint - The financial results for the first half of 2025 from major European automakers Volkswagen, Mercedes-Benz, and BMW show significant declines in revenue and profit, attributed to factors such as U.S. tariffs and intense competition in the Chinese market [1][3][9]. Financial Performance Summary - Mercedes-Benz reported a revenue of €72.6 billion (approximately ¥597.9 billion) for the first half of 2025, a decrease of 8.6% year-on-year, with a net profit of €2.7 billion (approximately ¥222.3 billion), down 55.8% compared to the previous year [3]. - Volkswagen's second-quarter revenue was €80.81 billion (approximately ¥665.4 billion), a 3% decline year-on-year, with an operating profit of €3.83 billion (approximately ¥315.3 billion), down 29.4% [3]. - BMW's total sales revenue for the first half of 2025 was €67.7 billion (approximately ¥557.5 billion), a decrease of 8% year-on-year, with a net profit of €4 billion (approximately ¥329.3 billion), down 29% [3]. Sales Performance Summary - Mercedes-Benz's global sales fell by 8% to 1.076 million units in the first half of 2025, with a 14% decline in China, a 6% decline in the U.S., and a 3% decline in Europe [4]. - BMW's global sales decreased by 0.5% to 1.207 million units, with a 15.5% drop in China, although sales in Europe increased by 8.2% [4][6]. Market Challenges - Both Mercedes-Benz and BMW cited U.S. tariffs and fierce competition in the Chinese market as key factors contributing to their declining performance [3][6]. - The impact of U.S. tariffs has been particularly severe, with Volkswagen experiencing a 16% drop in sales in North America and an estimated cost increase of €1.3 billion (approximately ¥10.7 billion) due to tariffs [9][12]. Strategic Responses - Despite the poor financial performance, the companies remain committed to their transformation strategies, with BMW leading in electric vehicle sales, reporting an 18.5% increase in sales of electric and plug-in hybrid models [8]. - Mercedes-Benz and Volkswagen are implementing cost-control measures and restructuring plans to mitigate financial losses, including layoffs and strategic shifts [12][13].

Core Viewpoint - The BBA (BMW, Benz, Audi) group continues to face profit declines in the first half of the year, with Audi being the only company to report revenue growth, while Mercedes-Benz experiences the largest profit drop [1][2]. Financial Performance - BMW reported revenue of €67.7 billion, a year-on-year decline of 8%, with net profit dropping 29% to €4 billion [1]. - Mercedes-Benz's revenue was €66.38 billion, down 8.6%, with net profit falling 55.8% to €2.69 billion [1]. - Audi's revenue increased by 5.3% to €32.57 billion, but net profit decreased by 37.5% to €1.346 billion [1]. Market Performance - Sales in the Chinese market saw significant declines, with BMW, Mercedes, and Audi selling 318,000, 293,000, and 288,000 units respectively, representing year-on-year drops of 15.5%, 14%, and 10.2% [2]. - BMW and Audi experienced some sales growth in European markets, while Mercedes-Benz faced larger declines in both profit and sales [2]. Strategic Adjustments - Audi and Mercedes have adjusted their electric vehicle strategies, with Audi retracting its plan to cease internal combustion engine development by 2033, and Mercedes shifting its focus to a dual development strategy for both fuel and electric vehicles [3]. - BBA is accelerating its electric vehicle transition in China, collaborating with local partners to enhance their offerings and efficiency [3][4]. Impact of Tariffs - Audi's CFO indicated that U.S. tariffs and increased transformation costs are major contributors to profit declines, with losses estimated at €600 million due to tariffs [5]. - Mercedes-Benz warned that tariffs have negatively impacted sales, predicting a significant drop in annual revenue compared to last year [6]. - BMW anticipates a 1.25 percentage point decline in EBIT margin by 2025 due to tariff-related factors [6]. Regional Sales Trends - In North America, BMW saw a slight increase in sales, while Mercedes-Benz and Audi experienced declines of 9% and 6% respectively [7]. - Audi is considering building a factory in the U.S., while BMW is exploring capacity expansion at its Spartanburg facility [7].

Core Viewpoint - The European luxury car industry is facing significant profit declines due to U.S. tariffs, with major companies like Mercedes-Benz, Porsche, and Audi reporting steep drops in earnings and sales [1][2][4]. Group 1: Financial Impact - BMW reported a sales revenue of €67.7 billion for the first half of the year, an 8% decrease year-on-year, with a net profit of €4 billion, down 29% [2]. - Mercedes-Benz's profits halved from approximately €6.1 billion to about €2.7 billion in the first half of the year, with a 9% decline in global sales [2]. - Porsche's net profit plummeted 71% to €718 million in the first half of 2025, with a nearly 91% drop in automotive business operating profit in Q2 [4]. - Audi's profits fell 37.5% to €1.3 billion in the first half of 2025, with U.S. tariffs causing approximately €600 million in losses [4]. Group 2: Tariff Effects - The U.S. tariffs have created significant uncertainty for companies, with Mercedes-Benz stating that the tariffs have impacted sales and profitability, reducing its profit margin from a potential 6.6% to 5.1% [2]. - The new trade agreement between the U.S. and EU, while reducing tariffs from 27.5% to 15%, still imposes a higher rate than previously, leading to ongoing financial strain for European manufacturers [5]. - The automotive industry is considering passing tariff costs onto U.S. consumers, with companies like Porsche and Aston Martin already raising prices [1][5][7]. Group 3: Market Dynamics - The North American market is crucial for European automakers, with over 20% of European car exports directed to the U.S. [6]. - Companies like Audi and Porsche, which do not have U.S. production facilities, are particularly vulnerable to tariff impacts [6]. - The competitive landscape is shifting as Chinese electric vehicle brands gain market share, exacerbating challenges for German manufacturers [8][9].