BMW Delivers 1.21 Million Vehicles in H1 2024

In the face of a turbulent economic landscape, the BMW Group has showcased its resilience and maintained robust performance for the first half of 2024, according to its latest financial report. Despite the challenges, BMW has reaffirmed its full-year guidance, driven by its diverse and appealing product lineup and strategic investments in innovation.

The BMW Group reported an automotive EBIT margin of 8.6 per cent for the first half of the year, with a slight improvement to 8.4 per cent in Q2. When excluding depreciation from purchase price allocation related to BMW Brilliance Automotive (BBA), the EBIT margin in the Automotive Segment rose to 9.6 per cent (Q2: 9.4 per cent). The Group's EBT margin also exceeded its strategic target, reaching 10.9 per cent in H1 2024 (Q2: 10.5 per cent).

BMW's sales success in the first half of the year was notably propelled by the strong performance of its fully electric vehicles (BEVs) and high-end BMW and BMW M models, both of which experienced double-digit growth. The company saw a 24.6 per cent increase in BEV deliveries, totaling 190,614 units. The BMW brand alone delivered nearly 180,000 BEVs, securing its position as the third-largest BEV manufacturer globally. Overall, BMW Group delivered 1,213,276 vehicles across all its brands, maintaining a similar level to the previous year.

BMW has significantly increased its investment in research and development, spending €4,169 million in the first half of 2024, a 22.8 per cent increase from the previous year. This investment is part of BMW's commitment to advancing its NEUE KLASSE project and furthering the electrification and digitalization of its portfolio and global facilities.

Higher manufacturing and personnel costs, along with increased expenditure on IT projects, have impacted BMW's earnings. Group earnings before tax (EBT) for the first six months were €8,023 million, a 14.2 per cent decline from the previous year. The net profit for the period also saw a decrease of 14.6 per cent, amounting to €5,656 million.

Despite these challenges, BMW continues to invest heavily in its future. Capital expenditure for the first half of the year reached €4,971 million, a 27.1 per cent increase compared to the same period last year.

BMW has continued its share repurchase program, holding 11,056,731 treasury shares as of June 30, 2024. The Financial Services Segment also posted significant growth, with new credit financing and leasing contracts rising by 16.5 per cent to 849,908 units. However, the segment's pre-tax earnings fell by 13.1 per cent, primarily due to the normalisation of global used car markets.

BMW remains optimistic about the future, reaffirming its full-year guidance. The company expects slight growth in customer deliveries worldwide and anticipates economic stabilisation in China by Q3 2024. Positive momentum is also expected from new model launches, such as the BMW 5 Series and the MINI family.

For the full year, BMW forecasts a slight decrease in Group earnings before tax due to higher costs and anticipated price decreases in global used car markets. However, the Automotive Segment's EBIT margin is expected to remain within the 8-10 per cent corridor. The Motorcycles Segment and Financial Services Segment are also expected to see growth, with EBIT margins and return on equity within target ranges.