BMW Group saw a significant drop in vehicle sales in China during the first six months of 2026, with deliveries of BMW and MINI models falling by more than 20% compared to the same period last year. This ongoing decline continues a trend that has affected the luxury automaker for several years, despite efforts to reverse the slump through China-specific product launches.

The combined sales of BMW and MINI in China totaled 261,773 units through mid-year, down from higher numbers in previous years when demand peaked in 2021. In the second quarter alone, sales plunged over 30%, underscoring the challenges the automaker faces in what remains its largest single market globally. China's share of BMW’s worldwide deliveries is expected to shrink if the current trajectory persists.

The slippage in China is not unique to BMW. Rival German luxury brands such as Mercedes-Benz and Audi have also recorded substantial sales declines in the country. Mercedes experienced a 30% drop in Q2 sales, while Audi and the broader Volkswagen Group reported steep decreases as well. This downturn reflects intensified competition from domestic automakers that have improved product quality and technology offerings at competitive prices, cutting into market share once dominated by foreign brands.

In response, BMW is accelerating its focus on China-tailored vehicles. The company has introduced long-wheelbase variants of the i3 and iX3 electric models designed specifically for Chinese consumers. BMW’s Shanghai design studio is also developing localized Neue Klasse electric vehicles to appeal to local tastes, signaling a shift toward more region-specific strategies.

Similar tactics are being adopted by competitors: Mercedes offers several China-exclusive models, including an electric three-row GLC, while Audi now markets a separate Chinese sub-brand without the traditional four rings. These moves highlight the premium European automakers’ intent to regain footholds in a market increasingly dominated by domestic players.

Outside China, BMW Group’s overall sales performance remains more positive. The company reported growth in the United States and the broader Americas region, as well as across Europe, where gains in several countries balance out the downturn in Asia. However, China’s shrinking contribution to BMW’s global volumes marks a notable shift in what has long been a cornerstone of its international success.