As the global automotive industry undergoes a significant transformation, the three dominant German luxury car manufacturers, which had long enjoyed growth, are now facing increasing market pressures.
Recently, the three German luxury car giants released their third-quarter financial reports, all showing a decline in revenue and profit.
Specifically, in terms of delivery volumes, BMW delivered a total of 540,900 vehicles under the BMW, MINI, and Rolls-Royce brands in the third quarter, a year-on-year decrease of 13%. Mercedes-Benz's group vehicle sales for the third quarter reached 594,600 units, down 3% from the same period last year. In terms of sales volume, China continues to be its largest single market, accounting for 29% of Mercedes-Benz's total sales this year. Audi Group delivered 407,400 vehicles in the third quarter, marking a 16% decline year-on-year.
Looking at revenue, the BMW Group reported operating income of €32.406 billion in the third quarter, a decrease of 15.7% year-on-year. Revenue for Mercedes-Benz cars in the third quarter was €34.528 billion, a decline of 6.7% year-on-year. Audi Group's revenue in the third quarter stood at €15.322 billion, down 5.5% year-on-year.
Regarding profit, in the third quarter of this year, BMW Group's earnings before interest and taxes (EBIT) were €1.696 billion, down 61% from last year's €4.352 billion. Mercedes' EBIT was €2.517 billion, a 48% year-on-year decline. Audi Group's operating profit dropped to €106 million, down 91% year-on-year, primarily attributed to the reorganization costs at the Audi Brussels plant.
Moreover, BMW's automotive division reported a free cash flow of -€2.48 billion, marking the first negative free cash flow in a decade. BMW explained that early bonus payouts to Chinese dealers also contributed to this burden on free cash flow.
The Mercedes-Benz Group also stated in its financial report that adjustments to product structure, increased product-related costs, the impact of incentives for electric models, and intensified promotional efforts by Chinese dealers were the main reasons for the year-on-year decline in EBIT for the third quarter.