BMW AG expects profit margins to remain steady in 2023, driven by sales of fully electric models and its most expensive vehicles, including the high-end 7-Series and cars from its Rolls-Royce brand.
(Bloomberg) — BMW AG expects profit margins to remain steady in 2023, driven by sales of fully electric models and its most expensive vehicles, including the high-end 7-Series and cars from its Rolls-Royce brand.
Automaking returns are expected to stay between 8% and 10% this year, in line with long term targets, the Munich-based carmaker said Wednesday. BMW said deliveries will likely increase slightly after dropping 4.8% last year due to supply chain disruptions.
BMW and other luxury-car makers have withstood economic headwinds as demand for the most expensive vehicles remained robust. But with high energy prices continuing to stoke inflation, higher interest rates and faltering consumer confidence, German auto manufacturers growing pessimistic, a recent survey showed.
Still, BMW expects growth in the “mid-double digits” percentage range for its 7-Series and Rolls-Royce models.
After doubling sales of battery-only powered BMW and Mini brand cars last year, BMW expects sales of pure-electric vehicles to account for 15% of total deliveries this year, up from 9%.
BMW now expects fully electric models to account for at least 20% of total sales by 2024 and 50% “well ahead of 2030.”
BMW said last week its 2022 earnings before interest and tax rose to €3.5 billion ($3.8 billion) in the fourth quarter, with its margin on carmaking reaching 8.6%, at the higher end of its guidance.
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