You are probably aware. At BMW, we are betting on electricity. Like other builders would you say. Yes, but with a very specific objective. That of challenging the superiority of Tesla even on the American market.
Like all the behemoths in the sector, European sales of the Munich brand in the first half of 2022 experienced a serious decline, down 13.6% (253,475 units sold compared to 293,451 in 2021). Whatever the race for volumes has never been a company desire, even less in this period of semiconductor supply restrictions and in a difficult international context. Being impossible to maintain production rates, we might as well promote the most profitable sales. The Bavarian manufacturer (1,016,541 units sold, or -13.7%) remains the world reference in the premium universe over the first six months of the year. And above all, the champion of profitability.
Over the first three months of 2022, BMW saw its turnover increase by 16.3% (31.142 billion euros, against 26.778 billion euros in Q1-2021). Better its pre-tax profit (EBT) increased by… 256%, from 12.227 billion euros, compared to 3.757 billion euros a year earlier.
Regarding the EBT margin, it increased to 39.3% in Q1-2022, compared to 14.0% a year earlier, at the same time. Over the whole of the first quarter of 2022, the automaker earned a net profit of 10.185 billion euros, compared to 2.833 billion euros in Q1-2021. The automotive business operating margin even reached 13.2%. Almost on a par with the all-category champion in this area… Tesla. Driven by luxury cars, and the electric BMW shows good prospects.
In terms of the brand’s best-selling models, the 3 and 4 series are ahead of the X3 and X4 SUVs and the 5 and 6 Series. But it is above all in the electric sector that growth has not been cut off. In a declining sales volume, the share of electrified models is up more than 110% at the German manufacturer.
The BMW i40 illustrates this trend with already more than 34,000 orders registered in Europe. The beginning of the electric offensive.
By the end of the year, the manufacturer will launch the i7 and especially the iX SUV. BMW’s new electric technology showcase. Available in three versions (iX xDrive40, iX xDrive50, and the sporty iX M60) the new flagship of the brand aims to compete with the Tesla Model X. And even beat it in terms of autonomy. BMW is currently testing a new battery for its iX capable of traveling 1,000 km on a single charge.
Provided by the American start-up Our Next Energy (ONE), the operational prototype will be ready by the end of the year.
BMW has all the assets to become the new reference brand for premium electrics.