Germany's BMW, Mercedes record poor sales amid weak Chinese demand

German carmakers BMW and Mercedes-Benz reported disappointing third-quarter figures on Thursday as weak demand in China hit sales.

BMW sales fell by 13% to around 541,000 cars, the company said in the southern city of Munich.

Issues with brakes from its supplier Continental led to a halt in deliveries of some 320,000 vehicles.

Sales declined in all regions, but the trend was particularly pronounced in China, where only 148,000 cars were sold, marking a drop of 30%. The country now accounts for only a quarter of BMW's sales.

In contrast, European sales decreased by just 1% to 219,000 vehicles.

BMW cut its annual forecast in September and now expects a slight decline in sales and a significant fall in profits for the year.

The picture was similar for Stuttgart-based Mercedes, which sold 503,600 cars in the third quarter, down 1% from a year ago.

However, sales of highly profitable luxury models, including the S-Class, fell by 12%.

In the vital Chinese market, around 13% fewer cars were sold. Around one-third of Mercedes sales are in China.

The company also saw a sharp drop in sales of electric vehicles, which fell by 31% to 42,500. It said demand for electric cars had remained weak in key markets.

BMW's electric vehicle department performed better in the third quarter, with sales rising 10% to 103,000.

The figures were released less than one week after European Union countries paved the way for additional tariffs of up to 35.3% on battery-powered electric vehicles imported from China.