BMW EV sales surge even as rivals struggle with weak demand

BMW AG’s sales of fully electric vehicles at its core brand surged in the first quarter, outperforming rivals like Tesla and Volkswagen, which have struggled to cope with faltering demand. 

Customer deliveries of battery-powered models such as BMW’s i4, iX1 and i7 jumped 41% in the three months through March compared to the same period last year, the company said Wednesday. The results helped group EV sales rise by 28%.

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. Volkswagen AG said its EV deliveries fell 3% in the first quarter as gains in China failed to offset a 24% decline in Europe.

Mercedes-Benz Group AG said Wednesday its sales of EVs fell 8% in the first quarter, citing supply-chain issues, the phase-out of its Smart Fortwo two-seater, and sluggish demand in Germany after state subsidies programs were scrapped. Earlier this month, Tesla reported its first year-on-year global sales drop since 2020.

BMW shares rose as much as 1.3% on Wednesday, taking gains this year to 14% with the stock slightly ahead of rival Mercedes-Benz over the past 12 months. Volkswagen shares are at about the same level as they were a year ago, while Tesla’s are 4.4% lower.

BMW, Volkswagen and Mercedes-Benz released their first-quarter figures as chief executive officers from some of Europe’s biggest carmakers met in Brussels to discuss risks facing the transition to EVs. Luca de Meo — CEO of Renault SA and president of the ACEA auto industry group — said Europe needs to bolster demand for EVs by expanding charging infrastructure, ensuring supplies of raw materials, improving financing options and introducing market incentives.  

BMW is banking on EV sales success after rolling out a significant number of new battery models, including the high-volume i4 sedan and more recently the iX2 crossover. The Munich-based company moved earlier in the EV shift than many competitors with the development of the i3 city car, garnering deeper experience with battery technology and having to work through a mixed reception of the