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The actual sales numbers of BMW and Audi vs. the Model 3 tell a different story. In the US the BMW 3-series sales fell of a cliff since the Model 3 was announc
by zaroth 7y ago
The actual sales numbers of BMW and Audi vs. the Model 3 tell a different story.
In the US the BMW 3-series sales fell of a cliff since the Model 3 was announced, and Model 3 Q2 sales in the US are 3,000 shy from beating the BMW 3-Series, Lexus ES, BMW 5-Series, and Mercedes C-Class (those are the #2-#5 in that segment)... combined.
[1] - https://cleantechnica.com/2019/08/10/tesla-model-3-outsold-bmw-mercedes-audi-lexus-competitors-in-2nd-quarter-in-usa-by-a-landslide/ https://cleantechnica.com/2019/08/10/tesla-model-3-outsold-b...
- jjeaff 7y agoBut compare BMW ICE sales of similarly priced vehicles to Tesla and it's not even close. BMW and the rest of the big makers have no reason to push electric car sales and increase electric R&D over the more profitable ICE models. Same goes for the dealers. They are the ones stealing sales and they make their money on service. Which will be less with electrics. Right now, if you want the best electric car all other factors be damned, you get a Tesla. But the miniscule amount of sales that Tesla has compared to the large manufacturers indicates that market is still exceedingly small. What incentive does BMW have to compete with Tesla? At the very best, they build an electric that blows the Tesla out of the water and take 100% of Tesla's sales. That amounts to about one month of their current revenue. Perhaps when demand for electrics at that price points really takes off, they will be caught flat footed without a competitive product. But that day is yet to come and the full weight of their R&D apparatus and sales force remains to be seen when it comes to electrics. Same goes for all the other big manufacturers.
- zaroth 7y agoTesla Model 3 outsold BMW 2, 3, 4 and 5 series combined. What BMW that is similarly priced to a Model 3 am I missing? The only BMWs that are still selling well are the SUVs. I think your narrative is 3 years out of date. BMW is dying at the hands of Tesla in the US right now, along with all the other “premium” carmakers. When the Model Y starts shipping, I imagine X3 and X5 sales will likewise be hit quite hard.
- jjeaff 7y agoBMW sells about as many units each month as Tesla sells all year right now. And they have been hitting all time unit sales records as of this year. https://www.bmwblog.com/2019/04/11/march-2019-best-ever-worldwide-sales-in-bmw-history/ https://www.bmwblog.com/2019/04/11/march-2019-best-ever-worl...
- zaroth 7y agoThat is worldwide. I am talking about the US. In the US, BMW’s YoY in 2018 for 3 Series was -25%! [1] Because you know, it makes just a bit more sense to compare them just within the US, where Tesla has had a chance to establish itself somewhat, compared to the 103-year old BMW. The fact that Tesla sells almost 1/10 as many cars as BMW sells worldwide is actually pretty amazing, considering Tesla is selling purely EVs, all made in a single factory in the US. When Tesla builds Giga4 in Europe in a couple years, then you’ll see the same effect there too. There’s a reason BMW just fired their CEO. [1] - https://www.press.bmwgroup.com/usa/article/attachment/T0289351EN_US/421420 https://www.press.bmwgroup.com/usa/article/attachment/T02893...
- robomartin 7y agoNot sure if you realize that the first portion of your comment is precisely the mechanism described in Innovators Dilemma. The greatest revelation for me was that good data-driven management decisions can cause a company to fail. In other words: good management can equal bad management.