BMW delivered roughly 1.16 million vehicles between January and June, marking a 4.2% dip compared to the same period last year. While the brand’s performance in China plummeted by 30% in the second quarter alone, demand elsewhere provided a buffer. Sales in Europe, now the company’s largest market, grew by 5.4%, while the Americas saw a 3% increase. Jochen Goller, the board member overseeing brands and sales, pointed to the resilience of Western markets despite global headwinds.

Electric vehicle sales offered a glimmer of momentum, bolstered by the rollout of the new iX3 model. However, these gains are overshadowed by a broader retreat in expectations. Last month, BMW revised its annual outlook, signaling a projected decline in auto sales for the year rather than the previously anticipated flat growth. The company faces a compounding set of pressures, ranging from intensified competition in China to the logistical fallout from conflict in the Middle East. This struggle mirrors the tightening landscape for German rivals; Volkswagen recently announced a sweeping reduction of its model lineup to combat rising costs and the aggressive expansion of Chinese competitors.