BMW on Thursday stated China sales of luxury passenger cars revived in April but the German premium car and motorbike producer cautioned that other markets consisting of the United States are going to be “very slow” to recover from the corona pandemic.
Earlier this month BMW lowered its profit expectations for its automotive and motorcycles divisions, mentioning worse-than-expected demand which would deteriorate in the second quarter.
“There is at least a glimmer of hope coming from China,” CEO Oliver Zipse said in a speech held at the company’s annual general meeting, which is being held in a virtual format for the first time.
“Unfortunately, our biggest single market is only of limited use as a blueprint for development in other markets.”
After China sales declined 88% in February 2020, deliveries boosted 14% in April, thanks to the increase in demand in a market where vehicle ownership is relatively low by global standards, BMW stated.
“Economies in Europe have been affected to varying degrees by the pandemic, for instance. Demand for cars in countries such as Spain, Italy and the UK will probably be very slow to recover. The same applies to the US,” Zipse stated.
The Munich-based manufacturer is gradually increasing production and last week resumed its factory in Goodwood, England, a plant in Spartanburg, United States and a motorcycle assembly factory located in Berlin.
This week BMW is resuming production in Dingolfing, Bavaria and next Monday the automaker will restart work at its German plants in Munich, Regensburg and Leipzig, as well as centers in Oxford, England, Rosslyn, South Africa and San Luis Potosí in Mexico, BMW stated.