At the IAA motor show in Munich just over a year ago, the two car manufacturers presented their important SUV series as electric models, the iX3 and the GLC. Six months after the market launch in Europe, Handelsblatt analyzes the sales figures: There is a clear winner.
Between the beginning of March and the end of August, more than twice as many car buyers in Europe chose the iX3 from BMW. The model had 36,500 new registrations during the period, while the GLC from Mercedes only had just over 16,100 units. This is shown by approval figures from the service provider Dataforce.
The two electric cars represent more than just sales figures. Mercedes and BMW are currently each bringing 40 new or revised model series onto the market. However, the iX3 and GLC have a particular relevance for the future of the corporations: With the iX3, BMW initiated the roll-out of the future “Neue Klasse” platform; at Mercedes, the GLC is considered the “destiny model” by CEO Ola Källenius. They are intended to end the decline in sales and ensure profits.
Electrification in Europe continues to advance, and Chinese competitors are entering the market. It is important to defend your own market position as a premium manufacturer with technologically advanced models. iX3 and GLC are software-based vehicles that have been equipped with the new generation of batteries and now promise fast charging times and long ranges. Both series are praised in comparison tests.
In spring in particular, sales of the BMW SUV were significantly higher than those of the GLC. The reason for this was, on the one hand, that the market launch took place two weeks earlier. More important, however, were temporary delivery problems with the GLC.
As the Handelsblatt exclusively reported in the spring, various components were missing for the model: The Mercedes plant in Bremen was lacking battery cells from the Chinese supplier CATL. The group also had difficulties procuring on-board electrical systems due to a failure in the supply chain.
These problems have now been resolved. As a result, new GLC registrations have increased significantly since June; in August they were eleven times higher than in March. On a monthly basis, Mercedes has almost caught up with its competitors: in August, the iX3 was registered around 6,700 times and the GLC 5,400 times. In July the difference was more than twice as large.
BMW started at a high level in the spring. At the beginning of May, the iX3, manufactured in Debrecen, Hungary, already exceeded the 10,000 new registration mark in Europe. Since a peak in June of almost 8,000 new registrations, the trend has been declining slightly. "Customers bought the car without ever driving it. For the first time, even Tesla drivers are switching to BMW," say dealer circles. Accordingly, Mercedes dealers are also satisfied with the development of the new model.
BMW's communication indicates that business with the electric SUV should continue to do well. The company regularly emphasizes that the iX3 has broken the 100,000 pre-order mark. The order book is filled well into the second quarter of next year.
Mercedes, on the other hand, does not provide any figures for pre-orders. But management is very satisfied with the demand for the GLC. It is the best-selling electric vehicle in the history of the Swabians. Production in Bremen runs in three shifts and, according to the company, the electric models will be sold out by the end of the year. Internally, Mercedes is speculating that it will have overtaken BMW by the end of the year.
According to the Dataforce figures, Mercedes and BMW are fighting for relevant market shares in the segment with their new electric SUVs. Since the beginning of the year, BMW has had a 7.7 percent share of new registrations of mid-range electric SUVs, putting it in third place - far behind the Model Y from the US manufacturer Tesla and the Enyaq from the Czech car manufacturer Skoda. Mercedes is in tenth place with a market share of 3.3 percent.
They are also well positioned in the business with corporate customers, which is important for the corporations: At BMW, fleets account for more than 57 percent of new registrations, and at Mercedes it is 50 percent. Private buyers account for 29 percent of new registrations at BMW and 27 percent at Mercedes. At Mercedes, low-margin own registrations and sales to rental car companies account for 22 percent of sales, while at BMW it is only eleven percent.
In recent months, some of the new electric SUVs have sold better than their combustion counterparts, which have been on the market for several years. While the combustion engine GLC was registered 4,500 times in August, the electric model had 5,400 units. BMW's iX3 sold 6,700 times, twice as many as the X3.
In order to really be able to report better results again, BMW and Mercedes also depend on higher sales figures in China. Sales by German car companies in the People's Republic have been declining significantly for years. This year the trend has intensified, which is why companies' margins and profits are melting away. BMW had to issue a profit warning in June because the Chinese market was developing even worse than initially expected, and Mercedes therefore had to adjust its sales expectations downwards.
For years, Mercedes and BMW have primarily benefited from the combustion engine business in China. However, when it comes to electric models, local competitors have now left traditional German companies behind. That should change with the market launch of the iX3 and GLC. Both manufacturers offer their models with local software and a longer wheelbase specifically for the Chinese market. They are built on site.
Despite the efforts, demand for the electric GLC is weak in China. Since the first deliveries in June, Mercedes has not sold 2,500 of the model. This is shown by figures from market researcher Marklines.
The electric GLC is the best electric model from Mercedes in the Far East. However, the sales figures are significantly behind combustion vehicles. Mercedes has sold more than 27,500 units of the classic GLC in China since June. Officially, management is satisfied with the GLC's sales figures, but these are far behind previous ambitions.
The iX3 will not be launched in China until November. Despite the tough environment, BMW remains confident. There is an “enormously positive response” from journalists, customers and on social networks and a “good volume of orders,” says CEO Milan Nedeljkovic. However, he does not give any specific numbers.
In terms of price, the Chinese model should in any case be competitive. The cheapest version of the iX3 costs around 38,200 euros - in Europe the cheapest configuration starts at 63,400 euros. Mercedes is trying to sell its GLC at a higher price in China; the starting price is the equivalent of around 45,000 euros. Sales in Europe start at around 65,000 euros.
The electric SUV duel between BMW and Mercedes also has a loser: Audi. The Volkswagen subsidiary offers the Q6 e-tron in the electric segment. Your problem: The vehicle - although it has only been on the market for around two years - is already outdated compared to the iX3 and GLC. This is reflected in the sales figures. From January to August, Audi only sold around 27,000 units of the Q6 e-tron in Europe, 16.5 percent less than a year earlier.
Audi was actually the first mover: the manufacturer wanted to bring the Q6 e-tron onto the market as early as 2021. At that time, it would have been the first with an 800-volt architecture, allowing the vehicle to be charged from ten to 80 percent in less than 20 minutes. But due to problems with software development, the market launch was delayed by two and a half years.
Audi has thus lost a potentially long-standing competitive advantage over BMW and Mercedes. Mercedes has only had an 800-volt vehicle on the market since last year, while BMW's iX3 is the first 800-volt electric car.
Audi would also have been superior to the previous models from BMW and Mercedes when it came to software. Compared to the current GLC and iX3, this is no longer the case. The competing models charge faster, have a longer range and a more modern electronic architecture. Audi now has plans to bring forward a revision of the Q6 e-tron. Corporate circles say that work is currently underway to upgrade the product.
