2 Expensive BMW Models Are Losing Ground This Year
In the automotive industry, sales trends can vary from quarter to quarter. Q2 2022 to Q2 2023 has seen a noticeable decline in sales for two prominent BMW models: the BMW 8 Series and the BMW X5. This article delves into the possible reasons behind this decline and provides an overview of these vehicles.
An overview of the BMW 8 Series
The BMW 8 Series lineup for 2023 combines grand proportions with luxurious appointments. While not as visually dramatic or practical as the four-door 8 Series Gran Coupe (reviewed separately), both two-door body styles are excellent highway cruisers. The 8 Series coupe and convertible have the giddy-up to match their opulence thanks to a pair of smooth engine options, particularly the gutsy 523-hp twin-turbo V8.
If extreme performance is a must, the M8 models reviewed separately fit the bill. Aside from poor outward visibility and a cramped back seat, the interior of the 2023 8 Series is stunning and exceptionally quiet. Its starting price is $87,500.
What do you get with the BMW X5?
The midsize luxury SUV class is brimming with options – most of which are excellent – but the 2023 BMW X5 stands out for a blend of performance and refinement that many crossovers lack.
The X5’s broad appeal stems in part from its trio of powertrains, which begin with a smooth-running turbocharged inline-six producing 335 hp. A twin-turbo V8 produces 523 hp, and an eco-friendly plug-in hybrid system allows for up to 30 miles of driving on electric power. It has a starting price of $61,600.
Why are BMW sales declining for the X5 and 8 Series?
According to GoodCarBadCar, both the BMW 8 Series and the BMW X5 have experienced a sharp decline from Q2 2022 to Q2 2023. The BMW 8 Series sales Q2 2023 were 1,338 units, and in Q2 2022, 1,963 units were sold. BMW X5 sales in Q2 2023 reached 15,987 models, and Q2 2022 saw 21,078 units sold. Economic conditions, changes in consumer preferences, increased competition, and supply chain challenges are among the potential contributors to this downturn.
One of the main drivers of the sales decline is likely the economic conditions brought on by the pandemic. A shortage of critical semiconductor chips, combined with high interest rates and low inventory, has driven down car sales for many auto companies. As a result, high-end vehicles like BMW have taken a hit in the sales department.
Consumer preferences and trends are crucial in the automotive industry. Shifts in preferences toward electric or hybrid vehicles, or a growing interest in more compact and fuel-efficient options, could have diverted potential buyers away from the 8 Series and X5, affecting BMW sales.
The automotive market is becoming increasingly competitive, with new models and brands entering the luxury vehicle segment. The rise of competing luxury models from other manufacturers, such as Hyundai with its Genesis division, could have spread consumer interest thin across various options, impacting the sales of the BMW 8 Series and X5.
Supply chain challenges
The global supply chain disruptions witnessed during the COVID-19 pandemic affected several industries, including automotive manufacturing. Delays in production, shortage of essential components, and difficulties in logistics could have led to reduced availability and longer wait times for the BMW 8 Series and X5, influencing potential buyers’ decisions.
The decline in sales of the BMW 8 Series and X5 from Q2 2022 to Q2 2023 could be attributed to a combination of economic conditions, shifting consumer preferences, increased competition, and supply chain challenges. Understanding these factors is crucial for BMW and other industry players to adapt strategies and maintain a competitive edge in a rapidly changing market.