BMW AG and Volkswagen AG saw a decline in vehicle sales during the second quarter. BMW specifically reported a 4.9% decrease in global vehicle deliveries.
The downturn was driven by a sharp drop in sales in China, where mounting competition from domestic rivals and a property crisis are stifling demand. BMW stated that this decline in China impacted total sales over the first half of the year, although the group saw gains in other markets.
Legacy German carmakers are also facing intensified competition from Chinese automakers outside of China. Brands like BYD are making inroads overseas, including in Europe.