BMW and Porsche Sales Hit by Global Challenges

BMW and Porsche have faced significant challenges in the first quarter of 2025, primarily due to declining sales in China and Europe. BMW's global sales fell by 1.4% despite a surge in electric vehicle demand, with a 17.2% drop in China contributing to this decline. Conversely, Porsche's overall deliveries fell 8% as sales plummeted by 42% in China and 34% in Germany, although North American sales increased by 37%. The decline in Porsche's European sales is partly due to the discontinuation of models that failed to meet new EU cybersecurity laws. Additionally, U.S. tariffs on imports have added uncertainty for both brands, with Porsche attempting to mitigate this by adjusting its pricing strategy. Both carmakers are seeing heightened competition from local Chinese manufacturers and navigating the transition to electric vehicles.