BMW share price down, loses ground but remains on top of the food chain

BMW reported a smaller sale rate increase of its luxury cars in September compared to earlier this year, but remains global market leader in the segment for a 10th straight year.

The owner of BMW, MINI and Rolls-Royce car brands said it experienced a slowdown in sales in its luxury car division. Nevertheless, BMW reported an overall increase in sales by 5.3% in September up to 199 799 vehicles, totaling a 6.5% jump so far this year to 1.53 million units.

“The BMW Group achieved an increase in sales in all major sales regions in September; this ongoing positive trend is reflected in the figures for the first three quarters of the year,” the company said.

The auto maker also reported a 6.1% rise in the core premium brand last month up to 167 584 vehicles, surpassing both Audi and Mercedes-Benz.

Overall sales in Europe rose 7.0% in September, 2.7% in the Americas and 21% in the Middle East. The German auto giant reported strong performance in Asia, where overall sales jumped by 14% 481 266 vehicles in the nine months through September, with deliveries in China scoring an 18% jump.

Back in Europe, combined with the MINI brands sales, BMW posted a new record for September, while close rival Audi was affected by a 1.6% sales drop.

While still ahead, BMW is losing ground to its competitors. BMWs lead over Audi got smaller, from 28 836 more vehicles sold in September 2013 to 20 842 sales this year. Mercedes-Benz is also gaining on BMW, reducing the gap between them from 146 946 cars in 2013 to 124 336 sales in 2014.

However, analysts do not predict BMW to lose its place as a market leader in the near future. According to IHS, BMWs core-brand car sales may increase by 23% up to $2.04 million by 2019, while Audi is expected to have 16% rise in sales up to 1.91 million and 12% rise for Mercedes-Benz up to 1.67 million.

On Friday, Bayerische Motoren Werke AG opened at €81.65 in Frankfurt and traded €80.14 per share at 11:43 GMT, marking a one-year change of -0.30%. Day high stood at €82.01, while days low was at €79.60. The company is valued at €52.37 billion. According to the Financial Times, the 31 analysts offering 12-month price targets for Bayerische Motoren Werke AG have a median target of €103.00, with a high estimate of €120.00 and a low estimate of €82.00. The median estimate represents a 24.85% increase from the previous close of €82.50.