BMW’s sales slipped in May after poor performance in its key China market caused by “changes in import duties.”
Car sales of brands BMW, Mini and Rolls-Royce dropped 2.1% y/y last month, with Chinese demand falling 10%, according to the Financial Times. Sales were still up to a record 1 million units for the first five months of the year, but the gain compared with the same time last year is slipping.
Despite tariffs on autos and auto parts being cut from 25% to 15% last month, the company has said “volatility in China due to changes in import duties” were a contributing factor to the sales slowdown. Instead of boosting purchases, customers were holding off because of uncertainty surrounding future prices, according to one spokesperson.