BMW AG’s sales of fully electric vehicles (EVs) at its core brand surged in the first quarter, offering a positive signal in Europe’s faltering EV market. 

Deliveries of battery-powered models such as the i4, iX1 and i7 surged 41% in the three months through March compared to the same period last year, the company said on Wednesday. The results helped overall group EV sales rise by 28%.

BMW’s results contrasted with the broader slowdown in demand for EVs, particularly in Europe, where battery-powered cars are flattening or even declining as a share of overall sales. Tesla Inc’s global sales plummeted in the first quarter, with the company citing causes ranging from higher interest rates to supply-chain disruptions in the Red Sea.

BMW is outpacing its premium-segment rivals in the transition to EVs, which made up roughly 15% of its total deliveries last year and are expected to rise to 20% this year. The company aims to boost that share further this year with half a million EV sales, drawing on 15 fully electric models across its brands. 

BMW is, however, facing stiff competition in China, its biggest market, where a subdued economy and price war led by Tesla is weighing on the industry. Sales of BMW and Mini brand vehicles in China declined 3.8% in the first quarter, while deliveries increased 5.5% in Europe and 1.2% in the US during the same period.

  - Bloomberg