BMW’s U.S. business is delivering when it matters most

BMW solidified its position as the top-selling luxury automaker in the U.S. with strong second-quarter sales, a result that comes as many rivals experienced declines.

The timing of BMW’s impressive quarter is important. One of the brand’s largest markets, China, has gone in the opposite direction in 2026, forcing BMW (BMWYY) to revise its outlook for the year. 

While U.S. demand can’t fully offset the China slowdown, the growth in U.S. sales gives BMW a resilient and profitable market it can rely on. It’s also a source of stability at a time when rivals like Mercedes-Benz, Lexus, and Audi have seen sales slide.

America keeps BMW’s momentum alive

Excluding the smaller Mini brand, BMW sold 102,713 vehicles in the U.S. in Q2, a healthy year-over-year increase of 13%. First-half sales reached 186,944 units, up by 4.7%.

103,257 of those models were larger, more expensive SUVs.

These are some of the brand’s most profitable models, led by the X5, with 41,554 sales in the first half. BMW will launch an all-new X5 soon, giving the company the chance to strengthen one of its core nameplates.

SUVs aside, BMW also saw strong first-half gains for the 3 Series (+32.3%) and Z4 (+47.8%), demonstrating the sustained interest in the manufacturer’s overall lineup.

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BMW didn’t merely grow — it has also pulled further ahead of rivals. Audi’s first-half sales dropped by 17% and Lexus saw a 5.2% drop, reports Automotive News.

“Our second-quarter results reflect the confidence customers continue to place in the BMW brand and validate our long-term strategy for the U.S. market,” said BMW of North America CEO Sebastian Mackensen.

Just as demand wanes elsewhere, BMW’s U.S. performance has maintained its momentum.

China slowdown magnifies importance of other markets

Combined Mini and BMW sales fell to 117,815 units in the China sales region in Q2 2026, a decline of 30.2%. Year-to-date sales in the region are down by 20.4%, by far the largest decline for the automaker. 

The only other region that declined in the first half was Asia-Pacific, Eastern Europe, Middle East, and Africa, down by 9.6% combined. Every other region experienced growth in 2026.

Related: BMW’s biggest market is becoming its biggest headache

Due in part to the impact of China, historically a key profit driver for the brand, BMW revised its guidance for the 2026 financial year. Its automotive EBIT margin guidance was cut to between 1% and 3%, down from 4% to 6% previously.

BMW also anticipates a significant group profit decline, which the company defines as a figure above 15%, reports Reuters.

The widening gap in BMW’s performance in China and the U.S. will become a focus of its strategy moving forward. Presently, BMW is depending on the U.S. to cushion the slump in China sales and profits.

BMW’s U.S. strength has limits

BMW’s U.S. business is in a healthy position and performing as well as management could hope.

As a whole, its lineup is performing well, with most models increasing their sales in 2026. Its product mix is strong and demand for both newer and older models appears consistent. The carmaker’s high-margin SUVs like the X5 and X6 are performing well in 2026.

However, the U.S. market’s growth can’t fully account for the losses in China. As Autoblog reports, BMW is also about to launch the Neue Klasse generation of vehicles in the U.S., and their success can’t be guaranteed.

Relying too heavily on one or two markets could leave the automaker vulnerable to regional economic slowdowns and unpredictable shifts in demand.

As the China market becomes less reliable, BMW could become increasingly dependent on other markets like the United States. Together with Europe, America may play a growing role in protecting the brand’s earnings.

Related: America’s car affordability crisis is getting worse

This story was originally published by TheStreet on Jul 14, 2026, where it first appeared in the Automotive section. Add TheStreet as a Preferred Source by clicking here.