2020 BMW sales in the U.S. have been badly hurt by the corona pandemic. Sales in Q2 were down an amazing 39.3 percent, totaling 50,957. Year to date BMW is down 28.4 percent in this market, with 110,412 vehicles sold. Globally BMW is doing a bit better, with BMW brand sales down 21.7 percent.
While there is no doubt the pandemic contributed greatly to BMW’s sales slump, other premium auto makers in the U.S. market are not down as much. Mercedes-Benz is down 13.7 percent 2020 YTD (not including work vans), selling 127,207 vehicles. Lexus is down 21.3 percent with 106,801 in sales, and could knock BMW into third place in this market if trends continue. Audi is down 24.9 percent with 76,210 sold.
Every single manufacturer except Tesla is down in this market. BMW seems to be doing what it can, halting production for a time in April and sweetening financial terms and payment options. It’s possible buyer uncertainty and inventory issues could push more sales into the second half of the year. Mercedes-Benz sells a larger range of vehicles than BMW, which may have insulated it somewhat from the corona downturn.
There isn’t any good news in the model sales numbers, with the exception of increased 2-Series sales. The new G20 3-Series is down 40.3 percent, after being up 30.4 percent in Q1. 4-Series sales won’t improve until the new G22 model reaches dealerships later this year. All SUV models are down, which have been BMW’s engine for growth the past few years.
The other volume line for BMW is the 5-Series, and it is down a whopping 60.4 percent this year. The current G30 generation was first sold in 2017. BMW is introducing some minor mid-production tweaks to the model, which BMW calls a “lifecyle impulse” or LCI. Maybe that will boost sales later this year.
BMW’s CPO and overall used car sales weren’t as badly affected as new sales, only down 5.9 percent and 15.3 percent respectively. This could indicate a higher percentage of buyers viewing a used BMW as a better value proposition than a new one. That’s where my wife and I landed last year when we bought a 2016 X5.
Last year BMW switched from monthly sales reporting to quarterly, so there won’t be fresh numbers until after September 1. Of course so much depends on what happens with the pandemic. If 2020 BMW sales keep trending like Q2, it could have lasting repercussions for BMW’s place in the U.S. luxury car segment.
Fewer sales in the U.S. gives BMW more reason to focus attention and resources on China. It’s BMW’s number one market, where demand is growing and profit margins are larger. A shrinking U.S. market would not be good for any kind of BMW owner here long-term.
UPDATE 11/14 – BMW NA had a better third quarter. Sales were down 16.2 percent quarter to quarter, and down 24.1 percent year to year. CPO sales were down 3.5 percent for the quarter and 9.2 for the year.
Globally BMW sales are actually up 9.8 percent, fueled by strong growth in China.