German luxury carmaker BMW’s second-quarter net profit fell 2.9 percent to 2.96 billion euros (CZK 71 billion). This was mainly due to higher taxes. Revenues, on the other hand, rose thanks to growth in car sales.
Sales growth
Sales increased by seven percent to 37.2 billion euros. The automotive division’s sales rose 5.4 percent and the motorcycle division’s 14.4 percent. Vehicle deliveries increased 11.3 percent to 626,726.
The carmaker said it was increasing investment in electrification faster than planned. But Chief Executive Oliver Zipse told a news conference that it was too early to set a date for the end of production of internal combustion engine cars. Volkswagen and Mercedes-Benz, for example, have already taken this step. Zipse has long been a promoter of investment in a range of technologies that reduce carbon dioxide emissions.
Carbon neutrality
“There is no indication that the world is giving up on internal combustion engine vehicles,” Zipse said, pointing out that of the major markets, only Europe has set an end date for the sale of these cars. BMW also pointed out that sales of internal combustion engine cars in major markets such as China and the US are still strong.
At the same time, BMW raised its annual sales and profit margin outlook for the carmaker. The operating profit as a percentage of sales in the passenger car division is now expected to be in the range of nine percent to 10.5 percent instead of the previously reported eight percent to 10 percent. Vehicle deliveries are expected to grow at a solid pace, the carmaker had originally forecast a moderate growth. However, it also warned that supply chain issues and inflation would continue to have a negative impact on the business.
Source Czech Press Office
