Sales in China are falling for BMW and Mercedes

Weak demand and fierce competition have hit quarterly sales in China of BMW and Mercedes. The German car sector is in difficulty due to high production costs, the choice towards electric models, declining demand and increasing competition from China. These difficulties have recently emerged from the cost cutting of the largest European car manufacturer, Volkswagen which is considering plant closures in Germany for the first time.

In the July-September quarter, the BMW sales fell 13% while those of Mercedes fell by 3%. Demand in China, the largest car producer in the world, is suffering from a struggling economy while foreign car manufacturers have to deal with stiff competition, especially in the electric sector, from local companies that offer more cheap.