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BMW Sees Demand Softening as Inflation, Interest Rates Bite

  • Carmaker sees reduction in new orders, especially in Europe
  • BMW strikes cautious tone while Mercedes hikes outlook
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BMW AG says new vehicle orders are retreating from high levels as inflation and higher interest rates hit consumers, making the company the first among major carmakers to turn more cautious. 

The Munich-based manufacturer sees vehicle orders normalizing toward the end of the year, particularly in Europe, it said Wednesday. Current order books are at an all-time high because of pent-up demand due to the ongoing semiconductor shortage.