The German automotive group BMW maintains good results, driven by its sales in China, and strengthens its ambitions in the electric field.
If German car manufacturers such as BMW or Daimler-Mercedes show better results than their French neighbors, this is mainly due to a good and effective establishment in the Middle Kingdom, which represents the first world market, as well as a strong positioning in the field of luxury cars.
The BMW Group, the owner of the premium car brands Mini and Rolls-Royce, sells one out of every three cars in China, and its sales increased again last year. The Chinese market is a key market, accounting for a quarter of global car registrations. “They have increased by 7 percent of vehicles there compared to 2019,” emphasizes Nicolas Peter, BMW‘s chief financial officer.
During the health crisis, China was one of the first countries in the world to show a recovery, in contrast to Europe, where the markets remained paralyzed for much longer. BMW‘s new electric model, the iX3, was first launched in the Celestial Empire last fall, before going on sale in Europe a little later.
In the balance sheet for the year 2020, the BMW Group thus cushioned the drop in sales to 5% or 99 billion euros. The net profit suffered more from the health crisis, showing a decline of 23% to 3.9 billion euros. The decline in sales was limited to 8%, with 2.3 million vehicles and motorcycles sold. These figures are close to its competitor Mercedes, which has a decline of 7%, to 2.2 million units.
For BMW, the year 2021 will be under the sign of recovery while focusing on electrification. The automaker is hoping for a rebound in sales and an operating margin between 6 and 8 percent, up from 2.7 percent last year. It also plans to invest nearly 400 million euros to create a new assembly line to boost its sales of electric vehicles.
BMW wants to sell 10 million 100% electric models over the next 10 years, compared to its initial target of 4 million. By 2030, deliveries should reach “at least” 50% of global deliveries according to the group. Its subsidiary Mini would also abandon all its combustion engines within 10 years.
Read also > [LUXUS+ MAGAZINE] HISTORY: A LOOK BACK AT THE CREATION OF THE FIRST VOLKSWAGEN!
Featured Photo: © BMW
