BMW US sales surge as China slump forces margin downgrade
BMW has reinforced its position as the leading luxury brand in the United States, recording strong second-quarter sales that contrast sharply with a 30.2 per cent decline in China. The divergence has compelled the German manufacturer to revise its full-year profit outlook.
BMW has solidified its status as the top-selling luxury automaker in the United States, driven by a 13 per cent year-on-year increase in second-quarter sales. Excluding the Mini brand, the company moved 102,713 vehicles in the US during the period, a performance that provided critical stability as rivals including Audi and Lexus experienced notable sales declines.
The strong US showing stands in stark contrast to the automaker’s performance in China, where combined BMW and Mini sales fell to 117,815 units in the second quarter of 2026. This represents a 30.2 per cent year-on-year drop, with year-to-date sales in the region down by 20.4 per cent. The disparity between the two markets has forced BMW to significantly lower its expectations for the remainder of the financial year.
Consequently, the company has revised its 2026 automotive EBIT margin guidance down to between one and three per cent, a substantial reduction from the previous range of four to six per cent. BMW also anticipates a significant decline in group profit, defined internally as a figure above 15 per cent. The China market, historically a key profit driver for the brand, is now a major headwind, prompting a strategic reliance on US demand to cushion the impact.
In the US, first-half sales reached 186,944 units, marking a 4.7 per cent increase year-on-year. The product mix has been heavily skewed toward higher-margin vehicles, with SUVs accounting for 103,257 of those sales. The X5 was the leading model with 41,554 units sold in the first half, supported by strong growth in other segments such as the 3 Series, which rose 32.3 per cent, and the Z4, which increased by 47.8 per cent.
BMW of North America CEO Sebastian Mackensen stated that the second-quarter results reflect continued customer confidence in the brand and validate the company’s long-term strategy for the US market. While the US growth provides a resilient base, it cannot fully offset the losses in China. BMW is preparing to launch the all-new X5 and the Neue Klasse generation of vehicles in the US, though management acknowledges that success in these segments is not guaranteed.
Beyond the US and China, other regions including Asia-Pacific, Eastern Europe, the Middle East, and Africa saw a combined 9.6 per cent decline in sales during the first half of 2026. The widening performance gap between the US and Asian markets will likely dictate BMW’s strategic focus moving forward, with America and Europe playing an increasingly vital role in protecting the brand’s earnings against regional volatility.
