Singapore. In the first half of 2026, BMW maintained its leadership in the premium EV segment with 52.7% market share and is the No. 2 brand in the overall premium automotive market with 36.3% share. In Indonesia, BMW continued to lead both the premium EV and premium segments, accounting for 52.0% and 53.9% respectively. This strong performance was complemented by year-on-year sales growth of 9.1% in Indonesia and 17.6% in the Philippines.

“While the market becomes increasingly volume-driven, BMW continues to lead where it matters most,” said Rene Gerhard, Managing Director, BMW Group Asia. “The premium segment is where customers value innovation, proven safety, brand trust, and reliable aftersales service. This is reflected in the growing adoption of BMW electric vehicles in Singapore, with roughly two out of every five BMWs sold being electric. The waiting list for the BMW iX3, our most significant launch in years, speaks for itself.”

Gerhard continued, “Our growth story is far from over. The second half of 2026 will be even stronger with the arrival of the new BMW 7 series and expansion of our EV portfolio with the new BMW i7. Even as market dynamics evolve and customer preferences shift, BMW continues to stay true to its customer-centric philosophy of creating products and services that inspire and meet the needs of tomorrow's mobility landscape.”

Key financial highlights.

Established in 1985, BMW Group Asia is the regional hub overseeing the East Asia region comprising 14 markets including: Bangladesh, Brunei, Cambodia, Guam, Indonesia, Laos, Myanmar, Nepal, New Caledonia, Philippines, Singapore, Sri Lanka, Tahiti, and Vietnam.

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Singapore. In the first quarter of 2026, BMW Asia witnessed strong growth in luxury class vehicles, with significant gains across the region, including +46% in Singapore, +64% in Indonesia, and +107% in the Philippines. Across the entire BMW Asia region, sales of luxury class models[i] increased by 38% overall. BMW also maintained its leadership in the premium EV segment in Singapore, with more than a 50% market share, and extended its leadership in the premium BEV segment in Indonesia (+23%) and the Philippines (+120%).

“Our ambition extends far beyond the vehicle itself,” said Rene Gerhard, Managing Director, BMW Group Asia. “We focus on inspiring and empowering our customers through innovation, sustainability, and meaningful connections. It’s clear that our luxury class models and BEVs resonate with customers who seek vehicles that feel personal, purposeful, and effortlessly suited to their lives.”

Gerhard continued, “2026 marks the beginning of an exciting new chapter for BMW Group Asia. With the upcoming launch of the new BMW iX3, the first model of our Neue Klasse, and later this year, the new BMW 7 Series as the first luxury sedan to feature Neue Klasse technologies, we are setting the direction for the future of our brand. These launches will give our customers a first, tangible glimpse of how BMW is redefining luxury, innovation, and sustainable mobility for the years ahead.”

Key financial highlights from Q1 2026 YoY.

MINI John Cooper Works and BEVs sales track upwards in the region.

Q1 2026 also proved to be a strong quarter for MINI Asia, with MINI John Cooper Works models recording a remarkable +187% growth across the region. With BEVs forming 24% of MINI John Cooper Works sales in the first three months of the year, this points to a growing appetite for electric performance options that still deliver the fun and excitement that make MINI unique. 

In Singapore, MINI further delivered 12% year‑on‑year growth in BEV sales, underscoring positive consumer demand for urban‑focused electric mobility solutions.

Established in 1985, BMW Group Asia is the regional hub overseeing the East Asia region comprising 14 markets including: Bangladesh, Brunei, Cambodia, Guam, Indonesia, Laos, Myanmar, Nepal, New Caledonia, Philippines, Singapore, Sri Lanka, Tahiti, and Vietnam.

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Singapore. BMW Asia has secured its position as Singapore’s number one premium automotive brand for the second consecutive year, powered by record demand for BMW M models and the launch of more than seven new vehicles. Growth was led by strong performances from the BMW X1, BMW X2, and BMW 2 Series, alongside significant momentum in electrification, with BMW and MINI together capturing 52.4% of Singapore’s premium EV market in 2025.

Additional milestones across BMW Group Asia markets included double‑digit growth for BMW and MINI in Vietnam (+21%) as well as BMW in the Philippines (+17%). BMW also maintained its position as the leading premium automotive brand in Indonesia, supported by sustained momentum across key segments.

“Our 2025 results show that customers want more than mobility – they seek emotion, performance, and a brand they can truly connect with,” said Lars Nielsen, Managing Director, BMW Group Asia. “Throughout the year, we clearly demonstrated why BMW and MINI continue to lead, by introducing new models across all drivetrains and delivering premium, end‑to‑end experiences that go far beyond getting from point A to point B. In 2026, we will elevate this even further, with innovative customer experiences that deepen engagement and make every moment with our brands truly exceptional.”

“MINI delivered a solid performance across the region in 2025,” said Daren Ching, Head of MINI Asia. “Alongside the launch of the new‑generation MINI Convertible and all‑new MINI John Cooper Works family, JCW and BEV models accounted for 15% and 32% of our sales respectively, supported by a 34% increase in BEV demand. It’s clear that drivers continue to believe in our heritage and the unmistakable thrill that every MINI delivers.”

“In 2026, we will build on this momentum with the introduction of the new MINI Paul Smith Edition and various local editions that have proven to be fan favourites over the years. This expressive lineup will continue to push creativity and craftsmanship forward, and we are excited to share it with MINI fans,” added Ching.

Looking ahead to 2026.

Following the showcase of the BMW Skytop and BMW Vision Neue Klasse X at the Singapore Motorshow, BMW Group Asia will also be introducing the following new models in 2026:

• The all-new BMW iX3
• The new BMW i7
• The new BMW 7 Series
• The new BMW M2 xDrive
• Range of MINI Editions

Established in 1985, BMW Group Asia is the regional hub overseeing the East Asia region comprising 14 markets including: Bangladesh, Brunei, Cambodia, Guam, Indonesia, Laos, Myanmar, Nepal, New Caledonia, Philippines, Singapore, Sri Lanka, Tahiti, and Vietnam.

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Singapore. BMW Asia performed strongly in the first nine months of the year as it maintains its position as the #1 premium automotive brand, and #2 brand overall, in Singapore. BMW has also firmly secured nearly 50% share of the total premium EV market during the same period.

“As we approach the final stretch of 2025, we are thrilled to have further increased our lead in Singapore’s premium automotive segment for the first three quarters of the year,” said Lars Nielsen, Managing Director, BMW Group Asia. “It is also heartening to see that BMW BEVs remain a popular option for customers who want to switch to electromobility but also value a premium driving experience. These strong results are proof that our customers have confidence in our products, services and technology, and that our dealers are delivering on their promise of providing a 360-degree customer experience that goes above and beyond what is offered in the market.”

Key financial highlights.

• BMW Singapore:
  • +4% growth year-on-year in Q3 2025.
  • +6% growth year-on-year for YTD September.
• BMW Vietnam: +40% growth year-on-year in Q3 2025.

“BMW Asia curated several experiences in Q3, in partnership with Performance Motors Limited and Eurokars Auto, to deepen relationships with existing customers, while attracting new ones,” continued Nielsen. “At BMW, we are more than just a car brand, we are a lifestyle that focuses on creating emotional connections throughout the ownership journey. For our customers, we immerse them in a world of innovation, sophistication and performance that make them proud to be a BMW owner. For potential customers, we build on the reality that the joy of driving is still a decisive purchasing factor for them and create aspirational touchpoints that allow them to witness this firsthand.”

BMW40, SG60.

From 1-31 August 2025, BMW Asia had a special surprise in store for Singapore customers to celebrate Singapore’s remarkable journey from independence to the vibrant, modern city it is today, and to commemorate BMW Group Asia’s 40th anniversary. A specially designed festive animation could be played on the vehicle display during this period, accompanied by a festive background track and uniquely orchestrated ambient lighting sequence in red and white. BMW owners across Singapore with suitably equipped vehicles* would have seen this greeting simply by clicking on the custom icon available on the BMW iDrive system.

Golf experiences.

• BMW Golf Cup National Final – From 12-15 August, BMW Asia hosted more than 2,000 amateur golfers in Singapore at Tanah Merah Country Club’s Tampines Course. The top three winners, Tan Lee Hong, Lee Kim Leng and Wang Mei Zhen, will represent Singapore at the BMW Golf Cup World Final at the Fancourt Golf Resort in South Africa in March 2026.
• BMW Drive Your Golf – In September, nearly 50 guests were hosted by both Performance Motors Limited and Eurokars Auto, for the second installment of the new driving and golf series. Guests travelled to Desaru, Malaysia for scenic drives, rounds of golf at Els Club Desaru, and social gatherings. The celebration of lifestyle, luxury and joy of the journey made this a special getaway to remember.

Gastronomy and the arts. 

• PML Culinary Experience – In July, Performance Motors Limited continued their invite-only, omakase-style dinner for high valued BMW owners at the PML café bar counter. Guests were served contemporary Italian dishes under the exquisite touch of Michelin-starred Chef Denis Lucchi and his team from Buona Terra.
• The BMW Art Night — Paris in Motion Experience – This invite-only event, hosted by Eurokars Auto, was held in September at the W Singapore - Sentosa Cove and gave guests the opportunity to experience the works of rising artist Paris Brosnan and witness a live painting created exclusively for this occasion. An emerging talent, Paris is known for his expressive pieces that fuse colour, movement and memory. His bold, innovative voice reflects BMW’s spirit of precision and emotion, making this evening a true celebration of art and innovation.

Management changes.

After nearly two and a half years strengthening BMW Group Asia’s partnership with THACO, the official BMW, MINI and Motorrad Importer in Vietnam; Mr. Lee Hwee Siong will be returning to Singapore to resume his former role as the Director of Sales Channel & Network Development Director as of 1 November 2025.

Furthermore, effective 1December 2025, Mr. Tobias Wulff will join BMW Group Asia as CFO, based in Singapore. Tobias joined BMW in 2001, as part of a Management Trainee Program, and has held various leadership roles in Finance and related functions over the years. He holds a Diploma in Business Informatics and MBA in General Management. Ms. Beate Mueller, CFO at BMW Group Asia since December 2020, will be returning to Munich to take on the responsibility of the Head of Controlling Finance Division, People and Real Estate for the BMW Group.

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Singapore. The first half of 2025 came to a strong close for BMW Asia as it secures its position as #2 automotive brand* in the overall market, and #1 premium automotive brand, in Singapore. Building on this success, BMW Group Asia also proudly announced that BMW and MINI combined now lead the premium automotive EV segment with 50% market share and that the organisation has been recognised as one of Singapore’s Best Employers for 2025 by The Straits Times.

“The automotive market is going through a great deal of change at the moment, so there’s a great feeling of achievement knowing that we’ve been able to weather the storm and still come out on top for the first half of 2025,” said Lars Nielsen, Managing Director, BMW Group Asia. “It’s an even greater feat to know that we continue to meet rising customer demand for electric vehicles, with BMW and MINI combined delivering one in every two BEV vehicles in the premium automotive segment.

Our success this year can be attributed to our dedicated staff, together with our dealer partners, and our complete 360° approach to providing our customers what they want and need. This includes the latest vehicles, across all engine variants and body types, an elevated ownership journey within our showrooms, a comprehensive post-purchase support system, and an opportunity to engage with like-minded customers in curated lifestyle activities across driving, golf, gastronomy and more.”

Key financial highlights for June YTD.

• BMW Singapore witnessed +6% growth year-on-year for June YTD, marking its highest H1 ever (not including COVID effect in 2021).
• BMW Vietnam witnessed +46% growth year-on-year for June YTD.
• MINI Singapore witnessed strong demand for BEVs, as electrified vehicles contributed to 43% of MINI sales in Singapore for June YTD.

It's the people that matter.

For the first time ever, BMW Group Asia joined the list of Singapore’s Top Employers by The Straits Times, coming in at No. 3. “I am really humbled and very grateful to see BMW Group Asia positioned on Singapore's Best Employers,” added Nielsen. “I’m thankful for my team that made this happen, for leaning out the window, learning and having fun with what we do every day.” BMW Group Asia is the only automotive company to break into the Top 5 since the inaugural ranking was presented in 2020.

Product milestones in H1 2025.

• BMW celebrates 50 years of the BMW 3 Series – Marking half a century since the first generation was introduced in 1975, the BMW 3 Series has been the cornerstone for the success of BMW, reimagining the concept of the sports sedan and setting new standards for performance.
• The Joy of Touring Cars N’ Kopi – For the first time ever, BMW Singapore partnered with the well-known car community, Cars N’ Kopi, to connect with car enthusiasts in Singapore and showcase the new BMW Touring models, including the BMW 520i Touring, BMW i5 Touring and BMW M5 Touring. 
• BMW i7 Singapore Icons – A one-of-its-kind masterpiece in motion, this vehicle was created to commemorate 60 years of Singapore, 40 years of BMW Asia and our successful journey together over the years. Draped in Madeira Red, it carries the bold spirit of a nation moving forward with carefully curated features, such as specially embroidered headrests and seven of Singapore’s most defining landmarks, each meticulously engraved across the dashboard with unmatched craftsmanship. Additional information can be found here.
• Launch of the 9 new models across BMW and MINI – In H1 2025, BMW Singapore launched the BMW 530i Signature, all-new BMW 1 Series (CAT A COE hatchback), all-new BMW X3, all-new BMW M235 Gran Coupe, all-new BMW 216 Gran Coupe, all-new BMW 520i Touring, all-new BMW M5 Touring and new BMW iX. MINI Singapore also launched the all-new MINI Convertible and full range of new generation MINI John Cooper Works models, completing the MINI family.

Setting the standard for elevated customer experience.

The first half of 2025 also brought with it recognition at the Retail Asia Awards 2025 for Performance Motors Limited as the Automotive Retailer of the Year – Singapore, and MINI Eurokars Habitat as the Store Design of the Year (Large) – Singapore. Mr. Nielsen continued, “These awards underscore the positive impact of the Retail.NEXT strategy that is being rolled out throughout the world. Our dealers’ commitment to elevate the entire BMW and MINI ownership journey, making it more engaging, personalised, and convenient, has played an integral part in our success story in Singapore.”

Beyond the drive. Relax. We care.

Ramesh Divyanathan, Director of Customer Support, BMW Group Asia commented, “Our relationship with our customers doesn’t end when we hand over the keys. If anything, this is where it begins. We believe it’s our responsibility to ensure our customers are taken care of the minute they drive off the lot. This includes everything from 24/7 Roadside Assistance to an expansive Service Network, to the peace of mind knowing that we will be here to support our customers wherever they are, whenever they need us, now and in the future.”

In addition to providing customers with a high-level of aftersales support, Performance Motors Limited, Eurokars Auto and Eurokars Habitat held a series of bespoke Service Clinics in the first half of 2025 to demonstrate Bodyshop Spray Painting to nearly 180 vehicle owners. In addition to participating in a hands-on workshop to attempt spray painting, they also learned about the superior level of paintwork provided by BMW and MINI due to a combination of factors including advanced technology, skilled technicians, and the use of original, high-quality materials.

In March 2025, BMW also teamed up with Nuna to launch the Nuna x BMW collection in Singapore. The exclusive collection of baby strollers and a carry cot fuses premium design with innovative features and is exclusively available at Mothercare Singapore. The collection features three strollers, the MIXX™ next (SGD$1,099), TRIV™ next (SGD$999), TRVL™ lx (SGD$699) and the LYTL™ carry cot (SGD$399), each featuring design details inspired by BMW, such as wheels with a BMW pattern, rims resembling BMW tires, and subtle BMW logo applications and patterns – seamlessly blending performance with elegance and showcases both brands’ commitment to unmatched detail.

Building a community.

“Beyond our vehicles, we know our customers want more,” explained Nielsen. “They want to be part of a community of like-minded individuals who have the same interests. For our BMW customers, this includes driving experiences, golf and gastronomy.

• MCOS x Eurokars Auto Sepang Track Day 2025 – In March, Eurokars Auto collaborated  with BMW M Cub of Singapore to bring club members and friends for an adrenaline-fueled track day to showcase their driving skills on the track and their camaraderie off the track.
• BMW Drive Your Golf – In May, BMW kicked off a series of events that combine the luxury of BMW driving experiences with the sport of golf. This first event took customers to Desaru, Malaysia for scenic drives, rounds of golf at Els Club Desaru, and social gatherings. More than 40 customers and their partners participated in this event, with more expressing interest for the next one!
• PML Culinary Experience – In January, Performance Motors Limited kicked off a monthly, invite-only, omakase experience for BMW 7 Series, BMW X7 and BMW M customers. This intimate dinner of no more than 14 guests, is held at the PML Showroom on Alexandra Road and has showcased the culinary expertise of Chef Seow Tzi Qin (known as Chef TQ) from Jiak Kim House, Chef Gabriel Low of Shoukouwa Shinjidai, and Chef Teo Yeow Siang (known as Chef Siang) from 3 Embers. More to come in the second half of the year!

What to expect in H2 2025.

The activities and excitement will continue in H2, for both BMW and MIN, including product launches, driving events, golfing activities and the opportunity to experience gastronomical delights:

• Launch of the all-new MINI John Cooper Works family. On 12 July, five all-new MINI John Cooper Works models, symbolising pure driving fun in its most powerful form, were launched in Singapore. Two fully electric MINI John Cooper Works models are now part of the MINI product portfolio for the first time, including the first-ever MINI John Cooper Works Electric and first-ever MINI John Cooper Works Aceman.
• MINI turns 66. From 4-10 August at VivoCity, MINI Singapore will be celebrating 66years of MINI by launching the limited edition MINI 66 Collection consisting of the MINI John Cooper Works and MINI John Cooper Works Electric. Stop by and be one of six lucky MINI customers to take home one of these vehicles.
• Annual BMW Golf Cup National Final. From 12-15 August, BMW Asia will host nearly 600 golfers at Tanah Merah Country Club’s Tampines Course to compete for a chance to represent Singapore at the BMW Golf Cup World Final that will be held at Fancourt Golf Resort in South Africa.
• All-new BMW iX3 World Premier at IAA MOBILITY 2025. The first Neue Klasse vehicle will be premiered at IAA Mobility in September 2025. The vehicle features the Panoramic iDrive, first introduced at CES 2025, 800V architecture, up to 400 kW charging power, and a WLTP range of up to 800 km. Stay tuned to hear more about the BMW iX3, showcasing a significant step forward in electric mobility for the BMW Group.
• BMW Berlin Marathon 2025. On 21 September, 30 customers from around the BMW Asia region, including Singapore, Brunei and the Philippines, will come together to participate at this prestigious Abbott World Marathon Major. In addition, 10 runners from the adidas Runners Singapore x BMW Asia team will also take on this challenge to represent both brands in Berlin.
• Oktoberfest 2025. BMW Asia will host customers for an invite-only event to experience this traditional Munich festival with Oktoberfest beer and bites and traditional festive music. This widely honoured event is a favorite tradition throughout Germany, and other parts of the world, and will be celebrated in style in Singapore.

^{*Excluding parallel-imported cars}

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Singapore. Following a strong finish to 2024, BMW Asia today announced a record-breaking Q1 for the organisation, with a +13% increase year-on-year over the same period in 2024. Results are attributed to stable BEV sales performance across all BMW Asia markets and a strong start for BMW Indonesia, witnessing an all-time high for Q1 retails.

“When you become our customer, you’re not just buying a car, you’re becoming part of a community, one that has been steadily growing over the past 40 years since we began our operations in the region,” said Lars Nielsen, Managing Director, BMW Group Asia. “At a bare minimum, we ensure this community enjoys a premium aftersales experience, which includes an expansive service network, enhanced Roadside Assistance, and hassle-free digitalization which makes owning a car today that much easier. Going beyond the car ownership experience, we also provide customers access to uniquely curated local, regional and global events that speak to their interests.”

Nielsen continued, “Our healthy results in Q1 across the region are proof that this combination of offerings is exactly what our customers need and want and will help us remain on course for a strong 2025.”

Key Highlights from Q1 2025 across the region are as follows:

• BMW Asia* sales increased by +13% YoY vs. 2024.
• BEV sales remain stable across the region, with a positive outlook ahead as we prepare for the Neue Klasse in 2026. 

Key Highlights from Q1 2025 in Singapore are as follows:

• BMW sales grew +12% YoY.
• BMW remains as one of the Top 3 in the overall BEV segment.
• BMW Singapore maintains the #1 position in the Traditional Premium BEV Segment, with 47% market share.

Key Highlights from Q1 2025 in Indonesia are as follows:

• BMW Indonesia is the only Premium brand in the market with positive growth.
• BMW Indonesia’s sales increased by 7.7% YoY.
• BMW maintains #1 position Premium BEV Segment with a total market share of 64%.
• Sales of high-performance BMW M vehicles rose by 34%.

Comprehensive Aftersales Experience

Largest Customer Support network in the Premium Segment across the BMW Group Asia region, with six locations island-wide in Singapore alone.

Enhanced Roadside Assistance that quickly reaches you and offers a personal touch that makes the unfortunate experience more manageable.

Remote Software Upgrades allowing owners to update their vehicle's software over-the-air, like a smartphone update, providing new functions, feature enhancements, and quality improvements without needing to visit a dealer.

Remote Diagnostics allows service centers to remotely diagnose issues with a BMW vehicle without the need for the car to be physically present.

Curated Events

Customers around the region are regularly invited to attend a variety of curated events related to golf, driving, gastronomy, arts and culture. The highlight of Q1 was the adrenaline-fueled BMW M Experience that was held on the breathtaking Yas Marina F1 Circuit in Abu Dhabi. Customers from around the region were invited to drive a full range of BMW M vehicles on the track, experience a high-speed Drag Race showdown with the BMW XM, and enjoy a once-in-a-lifetime dinner on the Start/Finish Line of the circuit.

Another memorable event was the BMW Golf Cup World Final, held in Bangkok, Thailand, where BMW customers from nearly 40 markets around the world participated in the largest international amateur golf tournament. Participants were treated like professional golfers, and proudly represented their countries as they battled it out, shot-for-shot, for the top spot on the leaderboard. 14 players from BMW Asia markets – Brunei, Guam, Indonesia, the Philippines, Singapore and Vietnam – participated in this prestigious event.

Nielsen continued, “Beyond the large format events driven by BMW Asia, we are regularly working with all our Dealer Partners and Importers around the region to ensure we have a steady flow of engagements throughout the year for customers to experience first-hand the joy of being part of our community.

In Singapore in particular, Performance Motors Limited customers can expect exclusive omakase experiences with top chefs from the country, while Eurokars Auto customers can look forward to exciting arts and culture events, like the private dinner they hosted last month with world renowned artist, Lincoln Townley.”

Steady Growth for MINI Asia

With a strong new line-up of the next generation of MINI models, MINI Asia is witnessing steady growth across the region and extremely high interest in its BEV models. Sales in Singapore more than doubled in Q1 2025 from the same period last year, with a strong potential for higher growth as the region prepares for the introduction of the full range of next-generation MINI John Cooper Works models.

*Established in 1985, BMW Asia is the regional hub overseeing the East Asia region comprising 14 markets including: Bangladesh, Brunei, Cambodia, Guam, Indonesia, Laos, Myanmar, Nepal, New Caledonia, Philippines, Singapore, Sri Lanka, Tahiti, and Vietnam.

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- Check against delivery –
 
Statement
Oliver Zipse
Chairman of the Board of Management of BMW AG
Annual Conference 2025
BMW Welt in Munich, 14 March 2025, 08:00 a.m. CET
 
Part I:
 
Good Morning, Ladies and Gentlemen.
 
Welcome to our annual conference.
 
2025 will be a milestone year for the BMW Group in many respects – as we set the course today for our success in the decade to come.
 
Despite volatile global conditions, we remain firmly committed to growth in the current financial year. At the same time, we are bringing our largest future-focused project, the NEUE KLASSE, to the roads.
 
We have a clear plan: We remain sharply focused on innovation and sustainable growth. In 2025, we expect sales figures to rise once again. At the same time capital expenditure will decrease, as planned. This will enable us to increase our free cash flow.
 
There are four reasons for our confidence:
 
 
First:
Our strategy is robust and gives us a clear path forward. We are setting the pace in key areas. Our technology open approach remains successful and is gaining more traction. Policymakers and competitors are pivoting in our direction – which we continue to pursue systematically.
 
Second:
The BMW Group is one of our industry’s few true global players. Our extensive global footprint creates opportunities. It makes us resilient. And it provides the flexibility we need to respond effectively to external influences.
 
Third:
With BMW, MINI, Rolls-Royce and BMW Motorrad, we have four strong brands. All of them are incredibly popular around the globe. Each has its own distinct identity and delivers emotionally compelling products for different target groups.
 
And fourth:
Our NEUE KLASSE: No other manufacturer has a project as ambitious and ground-breaking as ours about to enter production. I will come to this in the second part of my presentation.
 
Let's start with the first topic: our strategic direction.
Our technology-open approach is market-oriented. It allows us to fully leverage the available potential across all markets and regions.
 
We make no distinctions – whether we are talking about combustion engines, plug-in hybrids, all-electric vehicles or, from 2028, a hydrogen-powered car. We consistently implement design principles, innovation and the latest technologies in all our vehicles.
 
No one masters this technological diversity better than we do. Numerous national and international accolades confirm this.
 
Our approach is also gaining increasing recognition in political circles. Even our competitors are pivoting towards our strategy. We have proven that technological openness, growth and CO₂ reduction are very much compatible.
 
Let’s take a look at 2024:
 
We met our adjusted targets for the year. We delivered more than 2.45 million vehicles and achieved an EBIT margin of 6.3 percent in the Automotive Segment.
 
Our vehicles with highly efficient combustion engines remain in strong demand worldwide. At the same time, battery-electric vehicles continue to be our main growth driver.
 
Several other manufacturers – including some that only produce electric cars – saw a decline in sales. But we achieved growth with our all-electric vehicles. Even in challenging market conditions. In 2024, BEV sales once again climbed significantly year-on-year – increasing by more than 13 percent.
 
Fully-electric vehicles accounted for over 17 percent of total sales last year. Including plug-in hybrids, nearly one in four vehicles sold was electrified.
 
We are targeting further growth in e-mobility in 2025. We will hit two major milestones this year: We will reach the total of more than three million electrified vehicles and over 1.5 million BEVs sold since the launch of the BMW i3 and BMW i8.
 
Our customers can choose between over 15 BEVs across all our brands. One example is the new edition of the BMW iX*: The recently presented model update boasts an impressive electric range of over 700 kilometres in the WLTP cycle – with significantly more drive power.
 
That is BMW EfficientDynamics.
Our combination of electrified vehicles and highly efficient combustion engines also has a positive impact on our climate footprint. In 2024, the BMW Group once again outperformed its European CO2 fleet target – by more than 30 grammes. Based on our internal calculations, our fleet emissions fell below 100 grammes per kilometre in the WLTP cycle for the first time.
 
We will continue to ensure that our customers always have access to the latest technology – across all drivetrains. The key to achieving this lies in our production network’s high level of flexibility.
 
That brings me to my second point:
our global footprint.
 
The BMW Group is a true global player. Very few automotive manufacturers have such a comprehensive presence across all relevant economic regions as we do. Be it in sales, research and development, production or our supplier network. This combination gives us a strategic advantage that sets us apart from the competition in an increasingly fragmented world.
 
We remain committed to expanding our local for local approach. We are constantly improving our access to different market regions and strengthening our resilience, especially along supply chains.
One example of this is our high-voltage battery assembly plants in the three major sales regions: Europe, the Americas and China. In total, five new assembly facilities for the next generation of high-voltage batteries are being built near our production sites worldwide – complete with a local supplier network. In this way, we are already creating the necessary conditions today for successful growth in the future.
 
We are gradually adapting our production network to rising sales of electric vehicles. Late this year, our new plant in Debrecen, Hungary will become our first facility to exclusively produce all-electric vehicles. Our main plant in Munich will follow in 2027.
 
Our production follows the market and our product range aligns with demand. We build roughly the same number of vehicles in our three key market regions of Europe, the US and China as we sell there. This balanced distribution is another key differentiator for the BMW Group.
 
At the same time, Germany and the US serve as key export hubs for us. In 2024, we manufactured over one million vehicles at our plants in Germany. This represents about a quarter of the country’s total car production. 56 percent of these vehicles are then exported outside the European Union.
An impressive proof of the BMW Group's significant contribution to industrial value creation in Germany.
 
In the US, one out of every two vehicles from our Plant in Spartanburg, South Carolina, is exported. Last year, we achieved an export value of over 10 billion US dollars. This once again makes the BMW Group the largest automotive exporter in the United States by value. We benefit from an integrated global economy. That is why we continue to advocate for open markets and free trade.
 
Third point: the performance of our brands.
 
The success of the BMW Group is built on the global appeal and resonance of our four brands. At the same time, we know how to fulfil the specific needs and preferences of our customers in different markets with our products.
 
Last year, our core BMW brand leveraged its strength to the full: In three out of four regions, BMW grew sales and gained market share. This has enabled BMW to maintain its number one position in the global premium segment.
 
BMW performed particularly well in Europe. Italy, Spain, France and the UK led the way, with all reporting double-digit growth rates.
With a six-percent increase, the brand significantly outperformed the overall European market, which only grew by just over one percent.
 
In the US market, we achieved record sales for the second consecutive year. Here, too, the strength of our market-driven approach to drivetrains is delivering results. Thanks to our steadily growing BEV portfolio, we sold more than 50,000 electric vehicles in the US for the first time. With this momentum, we are optimistic about the year ahead, as we celebrate “50 years of BMW North America”.
 
In our markets outside the main sales regions, we also posted growth, in a declining environment overall. In this region, we lead the premium segment in total for the first time ever. The main growth drivers here included the South Korean, Australian and Indian markets.
 
China remains a key market for the BMW Group. In 2024, we sold more than a quarter of all our vehicles there. The market is highly dynamic and characterised by increased competitive pressure. In this environment, BMW maintained nonetheless its position as the number one in its segment with a market share of three per cent. This put us within our target range.
 
In 2024, we delivered over 100,000 BEVs to customers in China for the first time. This makes China our biggest single market for electric vehicles – even though our sales performance there was dampened last year by persistently low consumer sentiment.
 
The high-margin vehicles built by BMW M once again played an important role in our market success in 2024. For the 13th consecutive year, M sales increased. Nearly one in ten BMWs sold carried the letter M. Demand for the sportiest BMW models has continued to grow, especially in China.


2025 is the first year with the complete New MINI Family available. And we will exploit this potential.
 
There are a total of five unique models to choose from – three of them BEVs. The fully-electric MINI models – with the MINI Cooper Electric* leading the way – are being particularly well received. With an increase of 24 percent year-on-year, sales of MINI BEVs also saw highly dynamic growth last year. Nearly one in four MINIs is now powered by an electric heart.
 
In the ultra-luxury segment, Rolls-Royce continues to set the benchmark. At more than 5,700 units, Rolls-Royce sales remain high.
Most notably, the all-electric Spectre exceeded expectations in its first full year of sales. Every third Rolls-Royce sold is now fully-electric.
 
BMW Motorrad also impressed in 2024, achieving a new all-time sales high of over 210,000 units. BMW Motorrad remains the undisputed number one in the global premium motorcycle segment.
 
Ladies and Gentlemen,
 
All of this shows that the BMW Group is well positioned across all brands, drive technologies and segments to continue on its growth path. With our global approach, we have the right answers to challenges worldwide. This has often enabled us to offset fluctuations in demand in individual markets.
 
Now, it is time for Walter Mertl to present the Group Financial Statements for 2024 and look ahead to our goals for 2025.

 
Part II:
 
Ladies and Gentlemen,
 
Growth and innovation – these are two of the main topics we will be focusing on this year. At the same time, we stand on the threshold of a new era.
 
Late this year, we will launch our NEUE KLASSE: a project that is unprecedented in both form and significance in the history of the BMW Group.
 
With the NEUE KLASSE, we will be turning the mobility of the future into reality. Driving dynamics, drivetrain, battery technology, operating concept, digitalisation: We have refined each of these aspects and, in the case of design, even skipped a generation.
 
In this way, we are redefining not only the BMW brand, but also the future of individual mobility.
 
Standing here next to me is the BMW Vision Neue Klasse X: the series version of this vehicle will kick off the NEUE KLASSE. Production will ramp up at our new plant in Debrecen late this year.
After that, the rollout will continue in rapid succession, including a sporty sedan at the core of the BMW brand in 2026.
 
We are deliberately starting out in high-volume segments: We want our innovations to have a broad impact, not just in niche segments.
 
Between now and 2027, we will release more than 40 new or updated BMW models onto the market – from electric to plug-in hybrid to vehicles with combustion engines. Each will have the DNA of the NEUE KLASSE.
 
The NEUE KLASSE is BMW and BMW is the NEUE KLASSE.
 
The NEUE KLASSE is more than just a single vehicle. It marks the beginning of a completely new generation and introduces our technology boosters for the entire brand. Regardless of the drive technology, all future BMW models will benefit from the technologies of the NEUE KLASSE – and, of course, also from the new design language.
 
Allow me to share a few examples of our groundbreaking advances in technology:
 
With the BMW Panoramic iDrive, we are re-imagining our typical BMW driver orientation. The all new BMW Panoramic Vision is the centrepiece. This newly-developed additional Head-Up Display projects content across the full width of the windscreen.
 
Seamless integration of various display and operating elements enables a completely new level of intuitive interaction. From the launch of the very first model of the NEUE KLASSE, all future BMW models will come with BMW Panoramic iDrive.
 
The sixth generation of our BMW eDrive technology will make e-mobility even more appealing to our customers. The new BMW round cells promise 20 percent higher energy density, 30 percent faster charging and at least 30 percent more range. And within just 10 minutes, enough energy for another 300 kilometres can be recharged.
 
For the first time, the Gen6 high-voltage batteries also feature the latest 800-volt technology and enable bi-directional charging. Compared to the current fifth generation, we will reduce the cost of the high voltage battery by 40-50 percent, on a comparable electric range basis.
 
The electronics architecture has also been completely redesigned. Going forward, its four high-performance computers will control key customer functionalities. For example driving dynamics, automated driving and infotainment.
 
These “super-brains” deliver more than 20 times the in-vehicle computing power than current systems. This makes our models future-proof for software and function updates, as well as new AI features.
 
We have also greatly simplified the electrical system, dividing it into four zones, with intelligent control. 600 metres less wiring, a 30 percent reduction in weight and a 20 percent increase in energy efficiency are just some of the improvements we will achieve with this.
 
And, of course, we are also harnessing technical opportunities to take driving dynamics to a whole new level.
 
The BMW Vision Driving Experience showcases the potential of the technologies introduced in the NEUE KLASSE. We are pushing driving dynamics to its physical limits.
 
This highly emotional driving machine will thrill more than just BMW fans.
 
The VDX is the most powerful development prototype BMW has ever built. We are using it to test our “Heart of Joy” – one of the four super-brains in the NEUE KLASSE.
 
We developed the software for the driving dynamics control system entirely in-house. This will be used in all future electric BMW models, setting new standards for dynamic performance and efficiency.
 
It is hard to put into words exactly how it feels behind the wheel. You simply have to experience it.
 
Take a look for yourselves at what our “Heart of Joy” can do, paired with a maximum torque of 18,000 Newton meters.
 
You can't fake that kind of enthusiasm. Our Board of Management already had the chance to drive the series version of the NEUE KLASSE. Let me tell you: We were all equally excited about the driving experience – but not just in terms of pushing the physical limits. Most importantly, we were deeply impressed by the added value our technologies create for our customers in everyday situations.
 
This is truly the next level of Sheer Driving Pleasure.

Ladies and Gentlemen,
 
We first announced the NEUE KLASSE at our Annual Conference back in 2021. Today, just four years later, we are entering the final stretch.
 
Standing next to me is one of the prototype vehicles we have been producing in Debrecen since late last year.
 
What is still hidden under camouflage foil here will be unveiled at the IAA MOBILITY in Munich in early September. There we will present the production model that will be available to our customers.
 
I can already reveal one key detail to you today: this BMW will be released onto the market as the BMW iX3. This is how we continue the success story of the first all-electric BMW X model that has won over BMW fans worldwide since 2020.
 
Testing of the BMW iX3 is in full swing.
 
These impressions show that the next BMW iX3 is a typical X model, and a BMW through and through. As I’m sure you saw at the end of the film: The final phase of development for the sporty sedan, the second NEUE KLASSE vehicle, is also progressing rapidly.
Ladies and Gentlemen,
 
What has always set the BMW Group apart is that we keep our sights set on operational performance in the here and now. At the same time, we lay the foundation for our long-term future success.
 
We will continue to consistently pursue our BMW path – with foresight, customer focus, self-confidence and in the knowledge of our strengths.
 
We are ready. More than ever.
 
Thank you.
 

- Check against delivery –

Statement

Walter Mertl

Member of the Board of Management of BMW AG, Finance

Annual Conference 2025

BMW Welt in Munich, 14 March 2025, 08:00 a.m. CET

Ladies and Gentlemen,

Good morning!

SLIDE: BMW Group in Full-Year 2024

As Oliver emphasized, we continue to follow our course and implement our long-term strategy. At the same time, we are focused on our operational business to consistently deliver on what we say.

The BMW Group proved this once again in Q4 2024:

We successfully reduced inventory impacted by the Integrated Braking System or IBS. And we achieved a sequential improvement in retail sales and profit versus Q3.

For the full year, we achieved our revised guidance in all parameters.

As anticipated, we reached peak levels of R&D and capital expenditure in 2024, particularly to prepare for models of the NEUE KLASSE. Starting this year, both the R&D and capex ratios will decrease meaningfully, as we start production of the NEUE KLASSE and lay the foundation for the long-term success of our company with over 40 new and updated models by 2027.

Through our global positioning and the flexibility of our operations, we can adapt to the geopolitical landscape and short-term market dynamics, proving our resilience.

Let’s take a look at the financial figures for the full year.

2024 was a year of two halves:

While the first half-year was in line with our original planning, sales performance in the second half of the year was impacted by delivery stops in connection with IBS, as well as persistent subdued demand in China. As expected, Q4 marked an improvement on the Q3 result.

SLIDE: BMW Group KPIs in FY24

Group revenues totaled 142.4 billion euros. The moderate decrease compared to 2023 was mainly driven by the decline in sales volume and intense price competition in the Chinese market.

Earnings before Tax at Group level amounted to 11 billion euros – significantly under 2023, but as expected in our adjusted guidance. This resulted in a Group EBT Margin of 7.7% for the year.

SLIDE: BMW Group Segment Performance in FY24

If we look at the key financial results of the individual segments:

Automotive delivered an EBIT of 7.89 billion euros and EBIT margin of 6.3%.

Motorrad had an EBIT of 198 million euros, representing a margin of 6.1%.

Financial Services saw an EBT of 2.54 billion euros and a Return on Equity of 15.1%.

And, finally, Other Entities generated 837 million euros in EBT, while eliminations amounted to a negative 146 million euros.

SLIDE: Automotive Retail Units, BEV Units, Auto Revenue and Auto EBIT in FY24

So, let’s take a look at the Automotive Segment in detail:

For the full year, the BMW Group delivered 2.45 million BMW, MINI and Rolls-Royce vehicles to customers worldwide. This represents a slight decrease of 4% from the previous year, in line with our adjusted guidance.

Market dynamics in China remain weak, which impacted sales performance. However, the BMW brand achieved growth in every other major region.

In Europe, order intake in Q4 improved month by month. In the US, we experienced a strong recovery from IBS in Q4 with growth quarter-over-quarter of just over 50% and year-over-year of 8.9%.

Worldwide BMW Group sales performance in Q4 saw sequential improvement over Q3. Global deliveries grew by nearly a third quarter-on-quarter including double digit growth coming from the mid- and upper-segment together. 

All-electric vehicles remained a key growth driver for us. BEV deliveries totaled over 426,000 units for the year, significantly above 2023 by 13.5%. Overall, BEVs therefore made up 17.4% of total sales.

Our plug-in hybrid vehicles also remained very popular, with over 166,000 units sold in 2024. Electrified vehicles – meaning all-electric vehicles and plug-in hybrids – made up nearly a quarter of total sales.

Revenues in the Automotive segment amounted to nearly 125 billion euros, a decrease of 5.6% from 2023.

Earnings before interest and taxes reached 7.9 billion euros. This resulted in an EBIT margin of 6.3%, which was within our adjusted guidance corridor of 6 to 7 percent for the full year.

Excluding the 1.3 billion euros depreciation resulting from the purchase price allocation of BBA, the Automotive EBIT margin came in at 7.4% for the year.

SLIDE: Automotive EBIT Development in FY24

Looking to the operating result in detail:

Compared to 2023, EBIT for full-year 2024 saw a tailwind of 1 billion euros from the net balance of currency and raw material positions.

Year on year, the net effect of volume, model mix and pricing weighed on Automotive EBIT. The headwind resulted partly from the volume decrease, particularly in China. Pricing headwinds, including the effects of a highly competitive Chinese market and dealer compensation in China, amounted to more than half of the overall decrease of 4.4 billion euros.

The headwind of 1.4 billion euros from Other cost changes was driven by inflation in material costs and supply chain support.

The effect from warranty expenses was a tailwind year-on-year. Overall, lower additions to warranty provisions for specific topics were necessary in every quarter throughout 2024 compared to the previous year. An exception was Q3, due to the impact of IBS. For the full year 2024, the P&L impact of quality issues trended in a positive direction year-on-year, as planned.

SLIDE: R&D Expenditure in FY24

SLIDE: Capital Expenditure in FY24

Our R&D activities and investments focused on our ongoing electrification and digitalization strategy across the entire portfolio. As anticipated, R&D and capital expenditure reached peak levels in 2024 – both in absolute terms and in ratio.

Group expenditure for research and development for the full year reached 9.1 billion euros, compared to 7.8 billion euros in 2023. The R&D ratio according to the German Commercial Code was 6.4%, 1.4 percentage points more than in 2023.

Group capital expenditure totaled 9.1 billion euros, an increase from 8.8 billion euros in 2023. This resulted in a capex ratio of 6.4%, compared to 5.7% in 2023.

As we begin to rollout models of the NEUE KLASSE, we will see a decline in R&D and capex. This means in both absolute and relative terms, back towards our strategic corridors of between 4 to 5% for R&D and less than 5% for Capex by 2027 at the latest.

SLIDE: Automotive Segment Free Cash Flow in FY24

Turning to free cash flow – as you know, we steer this on an annual basis.

Starting with EBT delivering a full year result of 7.5 billion euros, working capital contributed positively with 200 million euros to free cash flow. Whilst inventory levels had risen due to sales stops related to IBS in Q3, we managed to successfully reduce stock by 5 billion euros in Q4. As a result, year-end inventory reached nearly the same level as it was at the beginning of the year.

For the full year, the net effect from capital expenditure and depreciation reduced free cash flow by 3.3 billion euros.

The development of provisions reduced free cash flow by 700 million euros.

The position “Other” reflects several positive effects, including interest received.

In line with our adjusted guidance, free cash flow reached 4.9 billion euros in 2024.

This is even after we invested 18.2 billion euros: 9.1 billion euros in CapEx and another 9.1 billion euros in R&D, paving the way for our future, and demonstrating our financial strength.

This strength is underscored by our Automotive net financial assets, which benefitted from the strong development of free cash flow in the fourth quarter. At year end, the Automotive NFA came in at almost 46 billion euros, which is around the same level as the start of the year.

SLIDE: Financial Services Segment in FY24

Moving on to the Financial Services Segment.

New business development in the segment remained robust throughout the year. A total of almost 1.7 million new financing and leasing contracts were concluded, a solid year-on-year increase of nearly 10%.

Overall, new business volume even increased significantly by 12.5% to 64.5 billion euros, due to higher average financing volume per vehicle.

Penetration rates for lease and loan offerings rose by 4.4 percentage points, reaching 42.6%. Without China, the penetration rate was over 50%, with growth in particular in the US and the UK.

Segment earnings before tax amounted to 2.54 million euros and were therefore significantly lower than the previous year. This was mainly due to higher credit and residual value risk costs than in 2023, but well within our expectations. We continue to see gains from the sale of off-lease vehicles, yet at lower levels due to market dynamics.

The credit loss ratio of 0.26% across the entire credit portfolio was well within our expectations and below industry levels.

Return on Equity for the full year reached 15.1%, within our adjusted guidance range of 15 to 18%.

Ladies and Gentlemen,

In our BMW Group Report, you will note that we have voluntarily adopted the full European Sustainability Reporting Standards for the first time as the framework for reporting all sustainability-related disclosures in our combined non-financial statement.

The BMW Group only reports on sustainability topics that have been assessed as “material” according to ESRS. However, this does not mean that topics which are assessed as “not-material” are necessarily less important.

We view sustainability holistically and as a competitive advantage. That is why we disclose our sustainability performance to our investors and customers.

You will note that the implementation of ESRS requirements have contributed over 100 additional pages to our Report. Due to the company-specific materiality assessment, comparability between companies remains limited – even within the same industry.

Indeed, it can be questioned how much value the additional scope and limited comparability offer to stakeholders. Accordingly, we welcome the proposed regulatory changes in the draft of the so-called Omnibus package and look forward to the draft updates and reduced scope of the ESRS.

Ultimately, we want added value for our stakeholders – meaning relevant and concise information. It’s not just about reporting and compliance.

SLIDE: Proposed Dividend and Payout Ratio

One important element of our stakeholder orientation is our shareholder return strategy, which the BMW Group remains committed to.

The Board of Management and the Supervisory Board will propose a dividend of 4.30 euros per share of common stock and 4.32 euros per share of preferred stock to the Annual General Meeting. This results in a total dividend payout of 2.7 billion euros. 

The proposed dividend for 2024 represents a payout ratio of 36.7%. This is within our long-term strategic target range of 30-40% and notably higher than the payout ratio in 2023.

On January 2nd, we began the final tranche of our ongoing second share buyback program, which should be completed by latest April 30th. This will conclude the second program – with 2 billion euros – more than half a year earlier than initially planned.

By this point in time, we will have reduced a total of 47 million shares in circulation since the start of the share buyback authorization in 2022. This corresponds to over 7% reduction in share capital.

At the upcoming AGM, the Board of Management of BMW AG plans to propose an agenda item, seeking a new five-year authorization to acquire treasury shares amounting to up to 10 percent of share capital.

You will have noted that we have made a step change in our approach since 2021. Starting in 2022, we added share buybacks as an additional instrument alongside dividend payments. We have also increasingly used the range of dividend payout corridor. And we increased the share of Automotive free cash flow distributed to shareholders from the previous years’ levels to almost 100% this year.

So, let’s move to the Outlook for 2025.

Looking to the market development:

Due to stabilizing inflation and declining interest rates in many countries, we expect to see a rise in demand.

How will the BMW Group’s sales performance develop this year?

Given the robust economic situation, we anticipate a solid market development in the US. In Europe, we do expect growth driven by electrified vehicles. The market dynamics in China, however, will remain challenging.

For the full year, revenues per vehicle in the Automotive segment are expected to be in the same range as 2024.

Our guidance reflects the current status of our planning, including all the tariff increases in force as of March 12th, 2025.

SLIDE: Outlook 2025

What do we expect for our key performance indicators in 2025?

Let me focus on selected guidance parameters.

In the Automotive Segment we are forecasting a slight increase in deliveries of BMW, MINI and Rolls Royce vehicles.

In terms of profitability, the total impact of the tariff increases in place as of March 12th amounts to approximately 1 percentage point on the Auto EBIT margin. As a result, the EBIT margin is now expected between 5 to 7%. Consequently, Return on Capital Employed in the Automotive segment should be within a range of 9 to 13%.

In the Financial Services segment, we anticipate a Return on Equity of 13 to 16%.

The Group’s pre-tax profit is expected to remain at the previous year’s level.

Starting January 1st, 2025, we have adjusted the outlook range for Group EBT guidance. The existing bandwidth was too narrow to reflect the underlying movements in the segments. For details, please refer to the glossary of the BMW Group Report.

The full outlook for 2025 for all key performance indicators is also available in the BMW Group Report.

For the full year 2025, we expect a free cash flow in the Automotive Segment of over 5 billion euros.

SLIDE: Closing

Ladies and Gentlemen,

The BMW Group remains fully focused on achieving our short-term results without compromising our long-term strategic objectives.

We remain committed to our long-term target corridor of 8 to 10% EBIT margin in the Automotive Segment.

To that end, we are constantly enhancing our operational business to ensure we achieve our strategic priorities and optimize our returns.

So, after the peak in 2024, we not only expect to see a turnaround in R&D expenditure and CapEx in 2025, but also a turnaround in operational costs. And here I mean a cost decrease in nominal terms, covering the effects of inflation. This will become visible over the course of the year.

At the BMW Group, strong brands and emotional products have long built the foundation of our success.

With the technological boost from the NEUE KLASSE across the entire portfolio, we look forward to seeing the benefits from our investments start hitting the road later this year.

Munich. The BMW Group is entering the financial year 2025 with a clear commitment to growth – with a planned slight increase in sales volume, a decrease in investments and robust free cash flow.

“What has always set the BMW Group apart is our ability to maintain our course, even in challenging conditions. We remain clearly focused on two things – our near term performance and our long-term perspective,” said Oliver Zipse, Chairman of the Board of Management of BMW AG, on Friday. “With the NEUE KLASSE, we are implementing the biggest future-focused project in the history of our company, while at the same time achieving a robust free cash flow.”

At the end of this year, the first production model of the NEUE KLASSE, the new BMW iX3, will kick off an unprecedented ramp-up of new models: Across all drivetrain variants and all segments, the BMW Group will release more than 40 new and updated vehicles onto the market by 2027. What these new models have in common is that they will be equipped with future technology clusters, which will be rolled out successively across the entire portfolio with the launch of the NEUE KLASSE.

“We are taking a huge leap forward with our new technology clusters – achieving maximum scalability, increasing the level of innovation and enhancing customer benefits. We do not differentiate between segments or drivetrain technologies – we provide every customer with the latest technology,” said Zipse.

Consistent implementation of strategy

The BMW Group made extensive investments in innovative technologies, its model line-up and manufacturing footprint worldwide in 2024. There will be a decrease in expenditure this year, from the planned peak in R&D spending and capital expenditure last year. On this basis, the company is aiming for a profit before taxes at the previous year’s level – despite increased tariffs.

“Never before in the history of BMW have we invested so extensively in our future. Investment reached its highest level in 2024, as planned. This underlines the durability of our strategy – and how consistently we are implementing it,” said Walter Mertl, member of the Board of Management, Finance.

Technology openness as strategic success factor in global competition

The diversity of its product range remains a key success factor for the BMW Group: The company is well positioned to meet globally diverse requirements and customer needs – both today and in the future – with a broad drivetrain portfolio spanning internal combustion engines, plug-in hybrids, battery-electric drive trains and, starting in 2028, also fuel-cell electric vehicles powered by hydrogen.

Highly efficient internal combustion engines, which remain in high demand worldwide, will continue to play a key role. Last year alone, the company released more than 15 new or updated models with internal combustion engines onto the roads. All engines have been approved for higher percentages of renewable fuels for years. Fuels with lower CO₂ content are the most effective way to reduce the carbon footprint of the existing fleet of over 250 million vehicles in Europe alone, making a valuable contribution to the transport sector’s efforts in the fight against climate change.

Battery-electric vehicles (BEVs) remain the BMW Group’s main growth driver. The company’s broad all-electric offer comprises more than 15 models across all brands. This means the BMW Group has a fully-electric offer in all its main segments. In 2024, the BMW Group significantly increased its total BEV sales worldwide to 426,536 units (+13.5%), representing a sales share of more than 17%. At MINI, about one in four vehicles is fully-electric; at Rolls-Royce, it is already one in three.

Plug-in hybrids (PHEVs) also remain an essential element of the BMW Group’s technology-open approach and electrification of its model range: State-of-the-art BMW PHEV models enable an all-electric range of over 100 kilometres, thus making it relevant for a large proportion of typical driving situations and also making a substantial contribution to CO₂ reduction. In total, the BMW Groupdelivered nearly 600,000 electrified vehicles including plug-in hybrids (PHEVs and BEVs) to customers in 2024. This means almost one in four vehicles sold was electrified.

Electrified deliveries reach new all-time high – important milestones in 2025

The company will reach two major milestones in 2025: first, three million electrified vehicles on the roads since the launch of the BMW i3 and BMW i8 and, second, 1.5 million fully-electric vehicles delivered to customers.

The decrease in the CO₂ emissions of the new vehicle fleet also underlines the effectiveness of technology openness: Based on preliminary figures, the BMW Group was able to reduce its EU fleet emissions to below 100 grams of CO₂ per kilometre (WLTP) for the first time in 2024.

First hydrogen production vehicle to be released in 2028

In 2028, the BMW Group will become the first premium manufacturer worldwide to release a series production fuel-cell vehicle, offering its customers another emission-free drivetrain option. To this end, the BMW Group is deepening its cooperation with Toyota Motor Corporation: Both partners will jointly develop the drive system for passenger cars, which will then be used in a brand-specific way in the two manufacturers’ respective models. The planned BMW vehicle will fit seamlessly into the brand’s portfolio, where it will be available alongside other drive train options.

NEUE KLASSE is laying the foundation – BMW iX3 will be first production vehicle

Series production of the NEUE KLASSE will get underway in late 2025. The first production vehicle of this new generation of BMW models will have the model name BMW iX3. Series production of this SAV model, which was foreshadowed by the BMW Vision Neue Klasse X last year, will begin late this year at Plant Debrecen – the first plant in the BMW Group production network to exclusively build fully-electric vehicles. Since late 2024, the plant has been producing pre-series vehicles for testing.

The BMW iX3 kicks off an unprecedented model ramp-up up to 2027: The launches of more than 40 models of all drivetrain variants will follow in quick succession; including a sporty sedan that is core to the BMW brand, which will be launched in 2026.

With the series launch of the BMW iX3, the new technology clusters will also be integrated throughout the entire BMW product line-up based on the established modularity principle. With this development, the BMW Group has achieved a high level of innovation: Numerous patents were successfully registered – for example, for electric motor components, display projection technologies and driving dynamics control functions. This means that all future BMW models will benefit from the innovations of the NEUE KLASSE - as well as from the new design language.

Digital nervous system for “Software-Defined Vehicle”

For the next stage in its customer and driving experience, the BMW Group has completely redesigned the components, functionality and connectivity its “Software-Defined Vehicle”. The result is an entirely restructured digital nervous system – consisting of a new electrical system with zonal architecture, a refined software architecture and four “super-brains”. These high-performance computers cluster the computing power for key customer functionality around infotainment, automated driving, driving dynamics and basic functions, such as vehicle access, air conditioning and comfort. In this way, the BMW Group is centralising and significantly reducing the number of electronic control units, while simultaneously providing well over 20 times more in-car computing power in the vehicle. This already ensures that the electronic control units will also be capable of accommodating future software and function updates, including AI features.

The zonal architecture comprising four zones, will substantially increase the vehicle's efficiency: On the one hand, this radically simplifies the electrical system – 600 metres less wiring also reduces weight by 30%. On the other hand, the use of “smart eFuses” allows unnecessary energy consumption to be deactivated in certain situations, such as when the vehicle is parked or charging. Developers are working on well over 1,000 software modules with more than 500 million lines of code to further enhance the software architecture of the new digital “nervous system”.

Overall, the redesign of the electronics architecture enables a quantum leap in performance, integration capability and efficiency. New innovations can be relayed much faster to the vehicle through over-the-air upgrades, ensuring the car remains up-to-date – even when the next vehicle generation is already on the market. Over the course of the year, the BMW Group targets to increase the number of “over the air update” capable vehicles on the roads to over ten million.

Next-level driving experience

Ten times faster than previous systems, developed entirely in-house and delivering maximum integration – with the “Heart of Joy” and new “BMW Dynamic Performance Control”, the BMW Group is set to achieve a quantum leap in driving experience: For the first time, the new highly integrated control unit – that will be used in every fully-electric BMW in the future – combines drivetrain and driving dynamics functions. Integrated control of the drive train, braking and recuperation takes efficiency to the next level: In 98% of driving situations, the conventional brake does not need to intervene – the recuperation braking power is sufficient. As a result, the “Heart of Joy” increases overall efficiency by up to 25%.

The performance capabilities and potential of the “Heart of Joy” are showcased in the BMW Vision Driving Experience. In this new high-performance test vehicle, the functionality of the electronic control unit is tested under extreme conditions: The Vision Vehicle develops a torque of up to 18,000 Nm. The logic behind this: If the system can handle such a powerful high-performance vehicle, it will also be capable of managing the requirements of future production models. The BMW Vision Driving Experience will showcase the capabilities of the “Heart of Joy” in April at the Auto Shanghai 2025.

Focus on driver orientation: The new BMW Panoramic iDrive

More than 20 years ago, the BMW Group set the benchmark for driver orientation and intuitive operability with its iDrive system. Starting in the new BMW iX3, the company is taking the next step by launching a completely new display and a new highly intelligent operating system. The clear objective is to reinterpret the brand’s hallmark “hands on the wheel, eyes on the road” approach and develop it into the future.

With “BMW Panoramic iDrive”, the central interface for driver-vehicle interaction is being totally redesigned. At the heart of this new system is BMW Panoramic Vision – a completely newly-developed concept that projects content across the full width of the windscreen. It is rounded off by three other new components: the BMW 3D head-up display, the central display and the multifunction steering wheel. The entire system is operated either by touch or voice control via BMW Intelligent Personal Assistant, which is taken to a new level through a Large Language Model (LLM).

The intelligent backbone of the new Panoramic iDrive is formed by the new BMW Operating System X, which was developed entirely in-house and is based on an Android Open Source Project (AOSP) software stack, delivering significant update and upgrade capabilities. The new operating system enables optimal coordination and distribution of content in the vehicle across Panoramic iDrive’s four elements. At the same time, it offers customers maximum personalisation and customisation, tailored to their individual preferences and needs.

Sixth-generation BMW eDrive technology

The BMW Group is launching the sixth generation of its eDrive technology in the electric models of the NEUE KLASSE. The system comprises three significantly enhanced components: the high-voltage battery, the electric motor and the “BMW Energy Master”: The latter operates as the control unit for the entire electric drive system, has been developed completely in-house and will be manufactured in the BMW Group Plant in Landshut.

In the future, the BMW Group will use round cells and an 800-volt system for its high-voltage battery. This combination heralds a major breakthrough at both cell and vehicle levels: 20% higher energy density, 30% faster charging and at least  30% more range. The round cells are integrated and wired directly into the battery housing. With this new concept, the BMW Group is aiming to reduce costs for the high voltage battery by 40 to 50 percent.**

For its e-drive, the BMW Group relies on a highly flexible and scalable modular system. The basis for this is provided by DC-excited Synchronous Motors (SSMs) that are developed and produced in-house. Vehicles with xDrive come with the option of Asynchronous Motors (ASMs) installed on the front axle, reducing energy loss by 40% and weight by 10%. In the future, customers will be able to choose between models with one, two, three or four electric motors.

Strong brands, diversified product portfolio

The foundation of the BMW Group’s success lies in its fresh and attractive product line-up across all segments. In 2024, with the new BMW X3, the BMW brand unveiled the fourth generation of one of its best-selling models. Within the past two years, the BMW Group has thoroughly updated its product range in two high-volume segments: In the entry-level segment, the new generations of the BMW 1 Series and BMW 2 Series Gran Coupé were released onto the market. In BMW’s core segment, both the BMW 3 Series and BMW 4 Series were further developed. Following the update to the BMW iX*, this model now provides a fully-electric range of over 700 kilometres in the WLTP cycle.

In 2024, M GmbH posted record sales for the 13th consecutive year, building on its broad and diverse model line-up, including the BMW M3 CS Touring*, BMW M5 Sedan* and BMW M5 Touring*, among others. One in ten BMW brand vehicles features M technology.

With the launch of the new MINI Convertible*, the New MINI Family is now complete, comprising five models in total.

Rolls-Royce recently introduced its second fully-electric vehicle, Black Badge Spectre*. The company is also investing 300 million pounds in its Goodwood production site to further expand its Bespoke and Coachbuild offerings.

BMW Motorrad reported its highest-ever sales last year. This success can be attributed to its highly sought-after GS models, the new heritage models of the R12 series and the high-performance long-distance sports models from the four-cylinder series, among others.

As planned, future investments reach new all-time high in 2024

Systematically and with strong momentum, the BMW Group is working on extensive future model updates and technology innovations including electrification and digitalisation across all model series. To this end, the company invested more than € 18 billion in R&D and capital expenditure linked to new products and facilities in the 2024 financial year. The company will further strengthen its global production network with the construction of the new plant in Debrecen (Hungary) – where series production of the new BMW iX3 will begin at the end of this year – along with the development of five high voltage battery assembly facilities and the extensive refurbishment of the Munich plant.

BMW Group meets adjusted business targets for 2024, as forecast

As projected, the company achieved its adjusted business targets for 2024, which were set in September. The guidance adjustment was triggered by the financial effects of delivery stops and recalls in connection with the supplied Integrated Brake System (IBS) component and continuing subdued demand in the Chinese market. Outside of China, the BMW Group benefited from growing customer demand for its attractive premium vehicles: Excluding China, the BMW brand achieved growth of 4.1% for the full year and was able to expand its position as number one in the segment worldwide. The BMW Group reported revenues for the full year of € 142,380 million (2023: € 155,498 million; -8.4%).

Investment in the future reach a new high with NEUE KLASSE

Expenditure for research and development increased significantly, as planned, to € 9,078 million (2023: € 7,755 million/+17.1%). The R&D ratio for the full year was 6.4% (2023: 5.0%). As planned, the BMW Group’s capital expenditure for the full year climbed to € 9,056 million (2023: € 8,836 million/+2.5%). The capex ratio for the 12-month period rose to 6.4% (2023: 5.7%). The company expects its investments in future projects to decrease, starting in 2025. 

Group earnings (EBT) in line with adjusted guidance

In 2024, the BMW Group reported Group earnings before tax (EBT) of €10,971 million (2023: € 17,096 million/-35.8%). The Group EBT margin came in at 7.7% (2023: 11.0%). In the fourth quarter of 2024, the BMW Group earned a margin of 5.8% (Q4/ 2023: 8.6%). Group net profit amounted to € 7,678 million (2023: € 12,165 million/-36.9%).

Automotive Segment EBIT margin at 6.3%

Automotive Segment earnings before financial result (EBIT) totalled € 7,893 million in 2024 (2023: € 12,981 million/ -39.2%). In the second half of 2024, in particular, the operating result was impacted by the market situation in China and delivery stops linked to Integrated Braking System (IBS). The EBIT margin came in at 6.3% (2023: 9.8%), which was within the adjusted target range of 6-7%. Excluding depreciation and amortisation for BBA assets from the purchase price allocation, the EBIT margin was 7.4%. In the fourth quarter of 2024, the segment earned a margin of 5.5% – excluding the BBA depreciation, EBT totalled approx. € 2.2 billion in the final quarter of the year, with an EBT margin of 6.5%.

The Automotive Segment’s free cash flow for the full year totalled € 4,852 million (2023: € 6,942 million) – despite realized future investments of € 18.2 bn. Largely due to a planned significant reduction in inventories, the BMW Group achieved a free cash flow of € 5,043 million in the fourth quarter (2023: € 1,183 million/+326%). In 2025, the segment’s free cash flow is expected to benefit from lower capital expenditure and land above €5 billion.

In the Financial Services Segment, the BMW Group reported solid growth in the number of new contracts with retail customers for new and used vehicles in 2024, with a significantly higher financing volume per contract. The penetration rate new BMW Group vehicles leased or financed by the Financial Services Segment climbed to 42.6%duringthe reporting year (2023: 38.2%/ +4.4 percentage points).

Earnings before tax (EBT) for the full year 2024 amounted to € 2,538 million (2023: € 2,962 million/-14.3%). Earnings development reflected the expected lowerincome from the resale of end-of-lease vehicles year-on-year, which nevertheless remains positive on average per vehicle. Additionally, earnings were impacted by higher provisions for credit and residual value risks, and additional allocations to provisions.

Higher payout ratio – dividend of € 4.30 proposed

Accounting for the payout ratio target range of 30 40% of net profit attributable to the shareholders of BMW AG and subject to the approval of the Annual General Meeting on 14 May 2025, thecompany’s unappropriated profit (according to the German Commercial Code) of € 2,677 million (2023: € 3,802 million/-29.6%) will be distributed to shareholders from BMW AG’s net profit. This represents the highest ever payout ratio of 36.7% (2023: 33.7%). Accordingly, the Board of Management and Supervisory Board will propose a dividend of € 4.30 per share of common stock (2023: € 6.00) and € 4.32  per share of preferred stock (2023: € 6.02). This makes the dividend for fiscal year 2024 the fourth highest in the company’s history.

In addition, share buybacks remain a solid pillar of the shareholder return strategy. Since authorization by the 2022 Annual General Meeting, the BMW Group has acquired a total of 6.35% of the share capital as of December 31, 2024. By April 2025, the company will have purchased a total of 4 billion euros in shares. At the Annual General Meeting on May 14, BMW AG will request a further authorization to buy back additional shares amounting to 10 percent of the existing share capital within the next five years.

“The BMW Group has consistently implemented its shareholder return strategy, even in the challenging financial year 2024. The highest payout ratio ever agreed in the history of BMW AG results in a dividend of €4.30 . In addition to our reliable annual dividends, our shareholders benefit from our share buyback programmes. Of course, our employees also benefit from the company’s success: They participate in it through our profit-sharing scheme and discounted share purchase options,” said CFO Mertl.

Number of employees higher year-on-year

The BMW Group employed 159,104 employees at the end of 2024 (2023: 154,950/ +2.7%). This slight increase in employee numbers was, as planned, due to the ramp-up of the NEUE KLASSE, primarily in development, IT and the BMW Group’s global production network.

Detailed guidance for financial year 2025

The BMW Group anticipates the following developments during financial year 2025: Inflation continues to stabilize and further moderate interest rate cuts in many countries suggest that demand will rise slightly in 2025. With the full availability of new models — the BMW 5 Series, the BMW X3 and the renewed MINI model range, as well as the new BMW 2 Series Gran Coupé — the company expects slight growth in sales overall. The share of all-electric vehicles in deliveries will increase slightly compared to 2024. 

The electrification and digitization strategy will continue in 2025; however, costs and investments are expected to decline after the 2024 peak. At the same time, the continued challenging situation in China, tariff increases and ongoing support measures for the supply chain are expected to provide headwinds.

This guidance takes into account the effects of the tariff increases that came into force up to March 12. In view of the aforementioned aspects, Group earnings before taxes will beexpected on previous year’s level***. An EBIT margin in the range of 5.0 to 7.0% is expectedin the Automotive segment. The Automotive Segment RoCE should be within a range of 9 to 13%.

RoE in the Financial Services segment is forecast to be in the range of 13 to 16%.

In the Motorcycles Segment, a slight increase in sales and an EBIT margin within the target range of 5.5 to 7.5%are forecast, with an RoCE of 13 to 17%.

The above targets will be achieved with the current number of employees.

The actual business performance of BMW Group may deviate from current expectations, i.e. due to changes in political and macroeconomic conditions. Among other things, the currently anticipated intensification of global trade conflicts, in the form of further tariff increases, could have a negative impact.

* * *

You will receive further information on the Group Financial Statements 2024 and the outlook for the current financial year at the BMW Group Annual Conference on 14 March 2025. You can follow the virtual event live on the internet from 8:00 a.m. (CET) at: https://www.live.bmwgroup.com/de/live-streaming/, with the livestream of the journalist Q+A at the Annual Conference from 9:00 to 9:45 a.m.

This will be followed from 11:00 a.m. to 12:00 p.m. by the livestream of the Investor Relations Q+A with analysts at https://www.bmwgroup.com/en/investor-relations/annual-conferences.html

The BMW Group Report 2024 will be published on 14 March 2025 at 7:30 a.m. (CET) at https://www.bmwgroup.com/de/investor-relations/unternehmensberichte.html.

**The costs for the 6th generation of the high-voltage battery will decrease by 40 to 50% compared to the current Gen5 high-voltage battery. This is based on a comparable e-range.

*** Starting January 1st, 2025, the outlook range for Group EBT was adapted. For details, please refer to the glossary of the BMW Group Report.

GLOSSARY – explanatory comments on key performance indicators

Deliveries to customers

A new or used vehicle is recorded as a delivery once it is handed over to the end user (which also includes leaseholders under lease contracts with BMW Financial Services). In the US and Canada, end users also include (1) dealers when they designate a vehicle as a service loaner or demonstrator vehicle and (2) dealers and other third parties when they purchase a company vehicle at auction and dealers when they purchase company vehicles directly from the BMW Group. Deliveries may be made by BMW AG, one of its international subsidiaries, a BMW Group retail outlet, or independent third-party dealers. The vast majority of deliveries – and hence the reporting of deliveries to the BMW Group – is made by independent third-party dealers. Retail vehicle deliveries during a given reporting period do not correlate directly to the revenues that the BMW Group recognises in respect of that particular reporting period.

Payout ratio

The payout ratio is preliminary. Although the Board of Management and the Supervisory Board will propose a fixed dividend per share at the Annual General Meeting, the number of shares entitled to a dividend is expected to fall by the Annual General Meeting due to the ongoing share buy-back programme. Accordingly, the total amount to be distributed to shareholders by 14 May is also still expected to change.

EBIT

Profit before financial result. Profit before financial result comprises revenues less cost of sales, less selling and administrative expenses and plus/minus net other operating income and expenses.

EBIT margin

Profit/loss before financial result as a percentage of revenues.

EBT

EBIT plus financial result.

PHEV

Plug-in-hybrid electric vehicle - hybrid vehicle with petrol engine and electric drive.

If you have any questions, please contact:

BMW Group Corporate Communications

Dr Britta Ullrich, Finance Communications

Telephone: +49 89 382-18364

Email: britta.ullrich@bmwgroup.com

Sebastian Kessler, Communications Corporate, Strategy

Telephone: +49 89 382-21616

Email: sebastian.ke.kessler@bmwgroup.com

Max-Morten Borgmann, Head of Communications Corporate, Finance, Sales

Telephone: +49 89 382-24118

Email: max-morten.borgmann@bmwgroup.com

Media website: https://newsroom.bmwgroup.com/global/en

Email: presse@bmwgroup.com

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.

In 2024, the BMW Group sold over 2.45 million passenger vehicles and more than 210,000 motorcycles worldwide. The profit before tax in the financial year 2024 was € 11.0 billion on revenues amounting to € 142.4 billion. As of 31 December 2024, the BMW Group had a workforce of 159,104 employees.

The economic success of the BMW Group has always been based on long-term thinking and responsible action. Sustainability is a key element of the BMW Group’s corporate strategy and covers all products from the supply chain and production to the end of their useful life.

www.bmwgroup.com

LinkedIn: http://www.linkedin.com/company/bmw-group/

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Instagram: https://www.instagram.com/bmwgroup

Facebook: https://www.facebook.com/bmwgroup

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Attached please find the BMW Group Report 2024.

The BMW Group Annual Conference will be held on 14 March 2025 at 08:00 am (CET).
The event will be broadcast on our website https://www.bmwgroup.com/en/investor-relations/company-reports.html.

The online version of the BMW Group Report 2024 can be explored here: https://www.bmwgroup.com/en/report/2024/index.html

Singapore. BMW Asia today announced that it has secured its position as the number one premium automotive brand in Singapore in 2024. Growth was supported by an expanded BEV portfolio that witnessed +107% increase in sales year-on-year, and top-selling models, including the BMW X1, BMW X2 and BMW 5 Series. This success corresponds with a milestone achievement for BMW Asia, as the organisation achieved its highest-ever volume.

“Our achievement in Singapore is definitely one for the books,” said Lars Nielsen, Managing Director, BMW Group Asia. “I believe our success this year is the result of providing a strong product portfolio, across both ICE and BEV models, delivering a series of exceptional customer experiences, and our steadfast determination to work with both our partners towards one goal.

“While 2024 certainly presented its fair share of challenges, our customers demonstrated their loyalty and trust in our brand, both of which were instrumental in getting us to where we are today. We remain committed to going bigger and better this year, and we cannot wait to show Singapore what is in store for 2025!” added Nielsen.

The 2024 year-on-year growth figures for Singapore are as follows:

The 2024 year-on-year growth figures for the BMW Group Asia region are as follows:

• BMW: +1.7%
• BMW BEV: +35%

“MINI also had a successful 2024 with many milestones in the region,” said Daren Ching, Head of MINI Asia. “In addition to launching the next generation of MINIs and demonstrating our full commitment to electrification, we witnessed +17% increase in sales year-on-year in Singapore, while MINI BEVs saw a whopping +1,163% growth locally and +58% growth in the region.

“MINI fans can rest assured that 2025 will be just as exciting”, continued Ching. “From the official launch of the all-new MINI Cooper Convertible to the expansion of the MINI John Cooper Works lineup for the fearless among us, there is something for everyone. The ‘Charismatic Simplicity’ of the new MINI family combined with uncompromising performance will create timeless memories and we cannot wait to get behind the wheel with you.”

“The opening of our new MINI Habitat facility in 2024 successfully brought the spirit of MINI closer to our customers,” said Cheryl Chiok, Managing Director, Eurokars Habitat. “In 2025, we aim to further amplify this experience – starting with service. Customers in the West can look forward to a new Retail.Next Service Facility in Tanjong Penjuru. From new models to unparalleled customer experiences at our cutting-edge facilities, we are committed to ensuring our customers have an abundance of MINI fun this year!”

New models launching in 2025.

Following the successful launch of the all-new BMW 1 Series, all-new BMW X3, and new BMW 530i Signature at the Singapore Motorshow, BMW Group Asia will also be introducing the following new models in the coming months:

• The all-new BMW 2 Series Gran Coupe
• The all-new BMW M5 Touring
• The new BMW iX
• The all-new MINI Cooper Convertible
• Range of MINI John Cooper Works models

Established in 1985, BMW Group Asia is the regional hub overseeing the East Asia region comprising 14 markets including: Bangladesh, Brunei, Cambodia, Guam, Indonesia, Laos, Myanmar, Nepal, New Caledonia, Philippines, Singapore, Sri Lanka, Tahiti, and Vietnam.

                                                            -End-

Munich. The record-breaking journey of BMW M GmbH continues: In the 2024 fiscal year, the sports car manufacturer of BMW reached a new all-time high in vehicle sales for the 13th consecutive year. With 206,582 vehicles, BMW M GmbH once again improved the benchmark, after having exceeded the threshold of 200,000 vehicles sold for the first time in the company's history the previous year. The impressive performance capabilities of the performance and high-performance vehicles are reflected in the growing demand across model classes, drive types, and regions.

The all-electric BMW i4 M50* was the best-selling model for the third time in a row. It transfers the typical M combination of agility, dynamics, and precision into the world of electromobility: With an electric motor at the front and rear axle, which together generate a maximum output of 400 kW/544 hp, the Gran Coupé offers a fascinating driving experience with a range of up to 522 kilometers according to WLTP. But vehicles with other drive systems also saw increases.

"The high demand for both gasoline-powered and electric models shows that our technology-neutral strategy is also paying off in the performance and high-performance segment, driving us to record results," says Sylvia Neubauer, Head of Customer, Brand and Sales at BMW M GmbH. "Anyone looking for a sporty driving experience will always find it at BMW M - in every vehicle category and drive variant."

The unbroken demand for vehicles with outstanding driving performance is also reflected in the growing share that BMW M models contribute to the success of the entire BMW Group. In 2024, almost every tenth vehicle sold was an M model (9.4% share). This is also a new record high.

High-performance models drive growth at top speed.

The biggest growth drivers in the 2024 fiscal year were the high-performance models, which combine untamed racetrack power with unrestricted road capability. After the 2024 model revisions of the BMW M2*, BMW M3*, and BMW M4* model series, as well as the new editions of the BMW M5* and BMW M5 Touring*, the segment is shining with top performances: The BMW M2 achieved a 64% increase, making it the top performer in terms of growth dynamics. With its muscular proportions and powerful design features, the model athlete makes no secret of its performance capabilities, which are embodied by the optimized M TwinPower Turbo straight-six-cylinder engine with 353 kW/480 hp. The M3 Touring* grew by +57%.

The high-performance segment is also increasingly electrifying more customers. The BMW XM*, as the first electrified high-performance model, recorded a sales increase of 16%. It combines pioneering drive technology with a spectacular vehicle concept: The specially developed M HYBRID System of the Sports Activity Vehicle mobilizes a maximum output of up to 550 kW/748 hp in the top model BMW XM Label*. Uncompromising design and fascinating performance create maximum exclusivity and make the BMW XM a completely new model in the luxury segment.

Overall, the high-performance models crossed the finish line in the 2024 fiscal year with 66,805 vehicles sold and an increase of 8%. "More customers than ever before worldwide are enthusiastic about the typical BMW M combination of expressive design with extensive individualization options, highly dynamic driving performance, and perfection in manufacturing," says Sylvia Neubauer. "The M evokes emotions: All our models have motorsport genes and stand for driving pleasure at the highest level."

International lead of M models continues to grow.

In both the performance segment and the particularly exclusive high-performance area, BMW M GmbH is leading the international competition and further increased its lead in the 2024 fiscal year. Thus, BMW M remains at the top with a large gap to the core competitors. In the USA and the UK, as well as in Germany, BMW M is the market leader among sports car manufacturers. "In the three largest markets, we are number one with a clear lead," says Franciscus van Meel, Chairman of the Board of Management of BMW M GmbH. "This expression of trust motivates us to deliver another strong performance in 2025, despite the continued highly challenging economic environment."

Further expansion of model diversity in focus.

With the further expansion of model diversity, BMW M GmbH is setting accents in 2025 as well. On the agenda are various special models and model revisions with innovations for combustion engines, plug-in hybrids, and electric drives alike. In addition, the development of the new all-electric BMW M3 is progressing. "Our offering spans the entire range of BMW models and includes performance and high-performance variants with all-electric, partially electric, and purely combustion-powered drives," says van Meel. "We will continue to pursue and further develop this successful strategy."

BMW M Motorsport provides emotions, success, and strong sales figures.

Another focus is on motorsport. In 2024, the return to the FIA World Endurance Championship (FIA WEC) of BMW M GmbH earned, among other things, a podium finish in the GT3 class at the legendary 24 Hours of Le Mans. The BMW M Hybrid V8 Art Car by artist Julie Mehretu also caused a sensation among the more than 300,000 spectators on site and the sports and culture media worldwide. In the past season, the three current BMW M Motorsport racing vehicles, the BMW M Hybrid V8, the BMW M4 GT3, and the BMW M4 GT4, together celebrated 215 victories, completed more than 1,000 races, and covered over one million kilometers. In 2025, the focus will be on successes with the BMW M Hybrid V8 in the FIA WEC and the North American IMSA series. On the customer motorsport side, the EVO versions of the BMW M4 GT3 and the BMW M4 GT4 are entering their debut seasons. Both vehicles are selling extremely successfully and demonstrate the extraordinary popularity of BMW M Motorsport products with customers around the world.

In case of queries, please contact:

Corporate Communications

Christophe Koenig, Head of BMW M and BMW M Motorsport Communications

Phone: +49-89-382-56097

E-mail: Christophe.Koenig@bmw.de

Alexandra Landers, Head of BMW Product and Brand Communications

Phone: +49-89-382-30871

E-mail: Alexandra.Landers@bmw.de

Internet: https://newsroom.bmwgroup.com/global/en

E-mail: presse@bmw.de

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.

In 2024, the BMW Group sold over 2.45 million passenger vehicles and more than 210,000 motorcycles worldwide. The profit before tax in the financial year 2023 was € 17.1 billion on revenues amounting to € 155.5 billion. As of 31 December 2023, the BMW Group had a workforce of 154,950 employees.

The economic success of the BMW Group has always been based on long-term thinking and responsible action. Sustainability is a key element of the BMW Group’s corporate strategy and covers all products from the supply chain and production to the end of their useful life.

www.bmwgroup.com

LinkedIn: http://www.linkedin.com/company/bmw-group/

YouTube: https://www.youtube.com/bmwgroup

Instagram: https://www.instagram.com/bmwgroup

Facebook: https://www.facebook.com/bmwgroup

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Munich. The BMW Group managed to continue its growth path in 2024, delivering a total of 426.594 fully-electric vehicles to customers and achieving BEV-sales growth of +13.5%. Both BMW and MINI brands posted double-digit BEV growth, with 368,523 (+11.6%) and 56,181 (+24.3%) fully-electric vehicles delivered to customers, respectively. The Rolls-Royce brand also recorded significant growth with 1.890 BEV vehicles delivered (+479.6%). The BMW brand managed to increase deliveries across all vehicle drivetrains in all sales regions outside of China.

“The BMW Group is maintaining its growth trajectory for fully-electric vehicles amid challenging market conditions. This is reflected in both the significant sales growth for fully-electric vehicles and the clear rise in new BEV orders in Europe,” said Jochen Goller, member of the Board of Management of BMW AG responsible for Customer, Brands, Sales. “We are confident we can maintain our BEV sales growth in 2025 with our strong and expanded product line-up,” Goller continued.

While BMW Group deliveries for the first half of 2024 were in line with the previous year, sales performance in the second half of the year was impacted by delivery stops in connection with the Integrated Brake System (IBS), as well as subdued demand in China. The BMW Group therefore adjusted its sales guidance for the full year. With a total of 2,450,804 vehicles delivered to customers in 2024, the BMW Group achieved this new sales target. Electrified vehicles represented 24.2% of total BMW Group sales in 2024, with 593,215 units delivered to customers. Fully-electric vehicles accounted for 17.4% of total sales.

The BMW brand delivered 2,200,177 vehicles to customers in the full year 2024 (-2.3%). With its attractive product portfolio across all technologies, the brand maintained its position as the global leader in its segment. In the Europe region, the BMW brand expanded its market share, registering double-digit sales growth in Italy, France and the UK. The BMW brand also posted sales growth in the US. In Germany, despite a declining market for fully-electric vehicles, BMW saw growth in new BEV registrations.

With a total of 206,582 vehicles delivered to customers in 2024, M GmbH sales grew by +2.1%, reaching a new all-time high. The MINI brand, which updated its entire product range last year, sold 244,915 units worldwide (-17.1%). In the fourth quarter, the brand almost doubled its BEV sales year-on-year, with 29,698 fully-electric vehicles sold. The Rolls-Royce brand delivered 5,712 units to customers
(-5.3%) in the full year. During the same period, BMW Motorrad sold 210.408 motorcycles and scooters (+0.6%) and thus achieved another record year.

BMW Group sales in Q4/YTD December 2024 at a glance

¹BEVs and PHEVs                                                                                 

BMW & MINI sales in the regions/markets

²Provisional registration figures

The delivery figures reported in this press release are provisional and may change up until the BMW Group Report 2024 is published. Notes on how delivery figures are prepared can be found in the BMW Group Report 2023 on p. 333.

BMW Group Corporate Communications

Dr Sina Unger, Communications Sales

Telephone: +49 89 382-47564

Email: sina.unger@bmwgroup.com

Carolin Bachmann, Communications Sales

Telephone: +49 89 382-38801

Email: carolin.bachmann@bmwgroup.com  

Max-Morten Borgmann, head of Communications BMW Group, Finance, Sales

Telephone: +49 89 382-24118

Email: max-morten.borgmann@bmwgroup.com

Media website: https://newsroom.bmwgroup.com/global/en

Email: presse@bmwgroup.com

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.

In 2024, the BMW Group sold over 2.45 million passenger vehicles and more than 210,000 motorcycles worldwide. The profit before tax in the financial year 2023 was € 17.1 billion on revenues amounting to € 155.5 billion. As of 31 December 2023, the BMW Group had a workforce of 154,950 employees.

The economic success of the BMW Group has always been based on long-term thinking and responsible action. Sustainability is a key element of the BMW Group’s corporate strategy and covers all products from the supply chain and production to the end of their useful life.

www.bmwgroup.com

LinkedIn: http://www.linkedin.com/company/bmw-group/

YouTube: https://www.youtube.com/bmwgroup

Instagram: https://www.instagram.com/bmwgroup

Facebook: https://www.facebook.com/bmwgroup

X: https://www.x.com/bmwgroup

- Check against delivery –

Ladies and Gentlemen,

At the BMW Group, we always focus on opportunities in the current market, as well as on our long-term success.

We ensure this by acting in a flexible, forward-looking manner.

After the extraordinary challenges in the third quarter, we are looking ahead: In the fourth quarter, we are back on track for stronger earnings in order to achieve our annual targets, despite planned high upfront expenditures.

We continuously adapt to changes in our environment – without ever reacting rashly. We continue to steer our strategic course into the future, while avoiding short-term adjustments that could jeopardise our long-term success.

Our commitment to technology openness has proven its value – and is paying off today more than ever.

Our global positioning across sales, production and our supplier network secures us access to markets worldwide.

BMW is a global company with a strong presence in all relevant economic regions. I regularly take the time to see this for myself. This doesn't work at a distance, but is best done when you are on the ground.

So, over the past three months, I have visited markets in all of our four sales regions – in Europe, the Americas, China and our emerging “Fourth Pillar Region”, which includes Southeast Asia and the Middle East, among others.

Our global approach has often allowed us to compensate for fluctuating demand in individual markets. Of course, we are monitoring current developments in China very closely. The economic conditions there are challenging – and that applies to all market participants.

However, it’s our ambition to perform better than our competitors, even in a challenging environment.

The key to this lies in our highly attractive product line-up. This enabled the BMW brand to deliver solid sales growth in Europe in the first nine months of the year.

With sales up by over 7 percent, we are significantly outperforming the total European market and expanding our market share.

There was particularly high demand

• in the UK, with an increase of 21 percent,
• in Spain, plus 19 percent,
• in Italy, up 17 percent,

and in France, with a gain of 14 percent.

And the BMW brand is also growing in markets such as South Korea, Australia and India.

Global demand for our high-margin models in the upper vehicle segments remains stable. The high-performance cars of BMW M reported sales growth of two percent in the year to the end of September. This month also sees the market launch of the latest M model many fans have been waiting for: the BMW M5 Touring*.

We are constantly expanding our product range across all drive variants in line with customer demand. Our highly flexible production network allows us to tap market potential.

This applies in particular to our all-electric models. In virtually every relevant segment, the BMW Group has at least one pure electric vehicle.

Across BMW, MINI and Rolls-Royce, customers have a choice of more than 15 different models. This means that the BMW Group has one of the broadest ranges of fully-electric vehicles among its competitors.

Sales in the first nine months of the year underscore the success of the BMW Group’s electrification strategy.

While other manufacturers – including some that only produce electric cars – are seeing a significant decrease in sales, battery-electric vehicles remain a growth driver for us in 2024.

By the end of September, we had sold almost 300,000 BEVs – an increase of more than 19 percent compared to the same period of last year. In the third quarter, battery-electric vehicles already accounted for 19 percent of the BMW Group’s total sales.

The BMW brand's fully-electric models performed particularly well in Europe – with sales climbing 36 percent in the first nine months.

Globally, BMW’s strong BEV portfolio fed growth in deliveries of more than 22 percent. The BMW i4* remains the brand's most popular electric vehicle.

It is closely followed by the BMW iX1*, which – like the BMW i7* – recorded double-digit growth. The first all-electric BMW iX2* is also on track for success following its market launch.

The new all-electric MINI models – led by the MINI Cooper SE* – are also being very well received. With a sales increase of 54 percent, MINI BEVs experienced highly dynamic growth in the third quarter. Starting this month, the all-electric MINI Aceman* will also be available in Europe.

For the first time, MINI is also electrifying its John Cooper Works variants. The MINI John Cooper Works Electric* and MINI John Cooper Works Aceman* celebrated their premiere at the Paris Motor Show.

Performance and driving dynamics are the clear focal point in both models. From January 2025 onwards, they will captivate even the most dedicated motorsport fans.

Looking ahead to next year, we anticipate another significant increase in sales of fully and partially electrified vehicles. For that reason, we see no need to modify or delay the European Union's stricter CO2 fleet targets for 2025.

We have been working intensively to meet these new fleet targets for a very long time. We are therefore confident that we will also meet the stricter requirements for 2025, as we have consistently in the last years.

Nevertheless, we believe that a comprehensive and critical review of CO2 fleet legislation in the EU following 2025 is absolutely essential.

What matters most is every tonne of CO2 we can save today – not sometime in the future. This is why the use of low-CO2 fuels, such as e-fuels, E25 or HVO100, should also be revisited. These fuels could immediately improve the carbon footprint of the more than 250 million vehicles already on roads in the EU.

By 2030, all-electric vehicles will account for more than 50 percent of our total sales. The rollout of our fully-electric NEUE KLASSE will play an important part in this.

The NEUE KLASSE is now entering the final straight – and we are keeping this forward-looking project on track. With a new design, the next generation of electric drives and a comprehensive digital experience, the NEUE KLASSE will set completely new standards.

In just under a year, the first series-production SAV model of the NEUE KLASSE will roll off the line at our new plant in Debrecen, Hungary. This will soon be followed by a sporty sedan from our main plant in Munich.

Preparations for the launch are progressing well:

• In early October, we reached an important milestone in Debrecen, with the start of pre-series production.
• At Plant Landshut, pre-series production of electric-engine housings for the NEUE KLASSE has already begun.
• In Munich, construction of the new assembly for the NEUE KLASSE is progressing in parallel with ongoing production.

With the NEUE KLASSE, we will elevate our entire vehicle portfolio to a whole new level of innovation. This will be possible thanks to our use of technology clusters, which can be integrated into all future vehicles.

In this way, all our products will benefit from the technological leaps we will achieve with the NEUE KLASSE. This applies not only to our all-electric vehicles, but across all drive technologies.

Our continued, systematic implementation of technology openness also ensures that we will continue to offer the latest ICE models in the coming years.

In 2028, we will introduce another element to our drive train portfolio: the BMW Group’s first series-produced fuel cell vehicle.

Hydrogen will play an increasingly important role in decarbonisation. This makes vehicles with a fuel cell drive train a logical complement to established drive technologies. 

To develop the new generation of fuel cell drive trains, we are deepening our long-standing cooperation with Toyota. We announced this in September together with Toyota CEO Koji Sato.

This collaboration also shares the goal of expanding infrastructure for hydrogen refuelling and electric vehicle charging.

Ladies and Gentlemen,

The European automotive industry currently faces fundamentally different challenges from those we have faced in the past.

We are not dealing with a singular, overarching occurrence.

Instead, we are facing a tangle of critical influencing factors that keep growing in number.

In such a phase, we do not need short-term incentives that only create a fleeting impact. What global companies truly need is a reliable and binding framework for progress and prosperity.

It should be up to each company to find the best technological solutions to meet legal requirements and to further reduce CO2 emissions.

Instead, more and more obstacles are constantly being placed in the way of existing successful technologies. As a result, potential for reducing CO2 emissions cannot be utilized. At the same time, decisions are being made that even harm the industry.

The introduction of tariffs on electric vehicles imported into the EU from China is just one example. Import duties do NOT make European manufacturers any more competitive.

On the contrary: They undermine the business models of companies that operate globally.

And, since these tariffs mainly affect small electric cars built by European manufacturers, they could even impede the growth of e-mobility.

Measures like these are also inconsistent with the EU value of free trade. Free movement of goods is a key success factor for economic growth – not just within the European Union, but globally.

Free trade remains a guiding principle for the BMW Group – and we will continue to advocate for it. Because protectionism always carries the risk that measures will provoke countermeasures – ultimately hurting everyone involved, rather than benefitting any of them.

We operate as a global player, making it all the more important to maintain our strategy of balanced global positioning. This applies as much to our sales and production network as to our selection of suppliers.

We continue to systematically expand our “local for local” approach – making our supply chains more resilient and improving our access to different market regions.

And while Germany’s future as an industrial location may be questioned by some, we are making investments here.

In Irlbach-Straßkirchen in Bavaria, we are building a new assembly plant for the latest generation of high-voltage batteries. They will be used for the first time in the NEUE KLASSE.

A total of five new assembly plants are under construction near our production sites worldwide, across all three major sales regions – Europe, the Americas and China.

In this way, we are already laying the foundation today for successful growth in the future.

Ladies and Gentlemen,

This past quarter, we faced a series of extraordinary challenges.

One of the BMW Group’s biggest strengths is our ability to consistently find the right solutions and implement the necessary steps swiftly and efficiently.

Our company maintains a robust global presence. Our strategic direction for the future is solid. We are carefully adapting our approach to changing conditions and planning for a range of scenarios.

We continue to be guided by the developments we can realistically expect to see in different regions of the world.

The fourth quarter will demonstrate that our measures – despite all the ongoing challenges – yield positive results. We therefore approach the final quarter of the current financial year with a sense of confidence.

We are striking a balance between securing short-term earnings and long-term success: This year, we are investing more than ever in new products, technologies and our plants, so that we can continue the BMW success story with the NEUE KLASSE from next year onwards.

Thank you.

Munich. The BMW Group expects sequentially increasing deliveries in the final quarter of 2024. This follows a third quarter in which technical actions linked to the Integrated Braking System (IBS) presented extraordinary challenges. As stated in the ad hoc announcement on September 10, the technical actions – together with weak demand in China – dampened the sales and revenue situation in the reporting period from July to September. Moreover, additional IBS-related provisions for warranty obligations in the high three-digit million-euro range impacted the third quarter. As a result, the BMW Group adjusted its 2024 financial guidance.

Nevertheless, the ramp-up in e-mobility remained strong and made a positive contribution in Q3. BMW Group BEV deliveries grew significantly by +10.1% compared to the previous year, and the share of sales of fully electric vehicles rose to 19.1% percent.

The BMW Group delivered a total of 1,754,157 automobiles in the nine-month period (2023:1,836,563 automobiles/ -4.5%). In the third quarter, the premium manufacturer delivered 540,881 BMW, MINI and Rolls-Royce vehicles (2023: 621,699 automobiles/ -13.0%).

The BMW Group benefits from its global presence and was able to balance out the different sales developments in the major world regions. The BMW brand grew by +4% outside China and gained +0.1% points in global market share while the premium brands MINI and Rolls-Royce were affected by model changes.

In Europe, the BMW brand experienced moderate growth of +7.6% over the nine-month period. Double digit growth in individual markets such as Spain, UK, France and Italy was a key driver. Despite a notable impact of the IBS issue in the Americas region and delivery stops in the US market, BMW sales reached the previous year's level and BMW maintained a stable market share.

The company has been working hard to replace the IBS components and is expediting the processing of vehicles in customer hands and those in stock. The majority of stock vehicles requiring action will be addressed and delivered before the end of the year.

“After the extraordinary challenges in the third quarter, we are looking ahead: In the fourth quarter, we are back on track for stronger earnings in order to achieve our annual targets, despite planned high upfront expenditures,” said the Chairman of the Board of Management of BMW AG, Oliver Zipse, on Wednesday. “We are striking a balance between securing short-term earnings and long-term success: This year we are investing more than ever in new products, technologies and our plants, so that we can continue the BMW success story with the NEUE KLASSE from next year onwards.”

IBS-related delivery stops and delays significantly impacted the BMW Group key financial figures in the reporting period: In Q3, the BMW Group posted revenues of €32,406 million (2023: €38,458 million/ -15.7%; adjusted for currency translation effects -15.3%; Sep YTD: €105,964 million; 2023: €112,530 million/ -5.8%; adjusted for currency translation effects -4.8%).

R&D spending and capital expenditure to secure future competitiveness

The BMW Group has a solid and robust balance sheet which enables continued investments in the future. As previously announced, the company expects to post peak figures for both research & development and capital expenditure in 2024.At the core is the roll-out of NEUE KLASSE across the whole portfolio focused on electrification, decarbonisation and digitalisation of its product line-up and structures.

Group research and development expenditure for the first nine months totalled €6,642 million and was significantly higher than the previous year (2023: € 5,223 million/ +27.2%; in Q3: € 2,473 million/ +35.4%). The R&D ratio of 6.3% was also higher year-on-year due to declining revenues (2023: 4.6%/+1.7 percentage points; in Q3: 7.6%; +2.8 percentage points).

Impact on Group and Automotive Segment financial figures

Group operating profit (EBIT) in the third quarter was €1,696 million (Q3 2023:

€4,352 million/ -61.0%; Sep YTD: €9,627 million; 2023: €14,070 million/ -31.6%). Negative fair value measurement effects resulting from falling interest rates contributed significantly to the decline in the Group financial result of €-858 million (Q3/2023: €-289 million; Sep YTD: €-766 million; 2023: €-656 million). As a result, Group earnings before tax in the third quarter declined to €838 million (€4,063 million/ -79.4%; Sep YTD: €8,861 million; 2023: €13,414 million/ -33.9%). The Group EBT margin came in at 2.6% respectively at 8.4% after nine months (Q3/ 2023: 10.6%/ -8.0%-pts.; 2023: 11.9%/ -3.5%-pts.)

The Automotive Segment posted revenues of €27,854 million (2023: €32,096 million /-13.2%;adjusted for currency translation effects -12.8%) in the third quarter (Sep YTD: €90,863 million (2023: €94,994 million/-4.3%; adjusted for currency translation effects -3.1%). Vehicle sales declined and product mix was negatively impacted – mainly due to weaker demand in China and IBS-related delivery stops of higher-class vehicle models.

Earnings before financial result (EBIT) in the same reporting period totalled € 634 million (Q3 2023: €3,135 million/ -79.8%; Sep YTD: €6,028 million (2023: €9,810 million/ -38.6%). The EBIT margin decreased to 2.3% respectively to 6.6% in Sep YTD (Q3 2023: 9.8%/ -7.5 %-pts.; 2023: 10.3%/ -3.7%-pts). Excluding the depreciation resulting from the purchase price allocation of BBA, the Automotive EBIT margin came in at 3.5% for the third quarter and 7.7% for September YTD.

Free cash flow impacted by capital expenditure and inventory

Lower earnings and increased inventory – resulting from delivery stops and lower sales volumes – had a particular impact on Q3 auto free cash flow. Working capital changed by €-1.934 million over the period and high capital expenditure of €3,311 million weighed on free cash flow. In the third quarter, it posted €-2,480 million (2023: €2,618 million; Sep YTD: €-191 million/ 2023: €5,759 million). With the release of stock vehicles following IBS exchange, the company is aiming for inventory levels at the previous year's level in the fourth quarter. Lower inventory levels and a sequentially higher result will contribute to the forecast free cash flow of >€4 billion despite further high investments.

“With stringent management, the BMW Group remains on track for the forecast auto free cash flow for the full year”, said BMW Group Chief Financial Officer Walter Mertl. “In the fourth quarter, sequentially higher deliveries and a stronger product mix will support our earnings. Despite the extraordinary pressures in Q3, we are adhering to our planned extensive investments. These are the basis for our future automotive portfolio, for our profit generation in the coming years. We are committed to our future and are shaping it today with focus”, said Mertl.

Capex ratio in the third quarter was 6.7%; after nine months and stood at 5.3%. A capex ratio of > 6% is expected for the year as a whole — as in previous years, the fourth quarter will also show seasonally high capital expenditure.

The BMW Group has consistently continued its share buyback program: The third tranche of the current second share buyback programwas successfully completed on October 25, 2024.

Based on the authorization of the Annual General Meeting on May 11, 2022, BMW AG acquired a total of 6.19% of the share capital as of September 30, 2024.

Financial Services Segment sees significant growth in new business

In the Financial Services Segment, the number of new financing and leasing contracts concluded in the first nine months of the year rose significantly to 1,252,251 (2023: 1,112,817 contracts/ +12.5%). The segment's volume of new business also grew significantly to €46,531 million (2023: €40,973 million/ +13.6%). The penetration rate increased to 42.3% (2023: 37.7%; +4.6 %-pts.).

For the year to the end of September, the segment reported an EBT of € 2,146 million (2023: €2,451 million/ -12.4%). Lower revenues from the resale of end-of-lease vehicles, that resulted largely from the continuing normalisation of global used car markets, primarily weighed on the result. During the nine-month period, the credit loss ratio was 0.26% across the entire loan portfolio (2023: 0.15%).

Adjusted guidance confirmed

In the fourth quarter, the BMW Group will continue to implement the measures outlined in the IBS technical campaigns with focus and urgency. Accordingly, it intends to hand over vehicles to customers that have been blocked to date. In many markets, the BMW Group is experiencing robust demand for its premium vehicles.

For the fiscal year 2024, the BMW Group is confirming its adjusted full-year guidance as of September 10: Group earnings before taxes will decrease significantly. Vehicle deliveries in the Automotive Segment will be slightly lower than the previous year. The EBIT margin for 2024 is forecast to be within the range of 6% to 7%. The return on capital employed (RoCE) is expected to be between 11% and 13%.

Return on equity (RoE) in the Financial Services Segment is projected to be between 15-18%, reflecting the current improvement in business development.

In the Motorcycles Segment, faced with a challenging market and competitive landscape, the BMW Group expects customer deliveries to be on a par with the previous year. The EBIT margin for 2024 will be in the range of 6% to 7%, with a return on capital employed (RoCE) of between 14% and 16%. These targets will be achieved with slightly higher employee numbers.

This guidance assumes that geopolitical and macroeconomic conditions will not deteriorate. Given the many uncertainties surrounding the existing risks and opportunities, the BMW Group’s actual business performance may deviate from current expectations.

The BMW Group continues to fully leverage its young and attractive product portfolio and its proven approach of technology openness. Thanks to its flexibility, the balance across key global regions and a strong balance sheet, it is able to adapt to dynamic market changes while consistently pursuing its long-term business success.

GLOSSARY – explanatory comments on key performance indicators

BEV

Battery Electric Vehicle.

Deliveries to customers

A new or used vehicle is recorded as a delivery once it is handed over to the end user (which also includes leaseholders under lease contracts with BMW Financial Services). In the US and Canada, end users also include (1) dealers when they designate a vehicle as a service loaner or demonstrator vehicle and (2) dealers and other third parties when they purchase a company vehicle at auction and dealers when they purchase company vehicles directly from the BMW Group. Deliveries may be made by BMW AG, one of its international subsidiaries, a BMW Group retail outlet, or independent third-party dealers. The vast majority of deliveries – and hence the reporting of deliveries to the BMW Group – is made by independent third-party dealers. Retail vehicle deliveries during a given reporting period do not correlate directly to the revenues that the BMW Group recognises in respect of that particular reporting period.

EBIT

Profit before financial result. Profit before financial result comprises revenues less cost of sales, less selling and administrative expenses and plus/minus net other operating income and expenses.

EBIT margin

Profit/loss before financial result as a percentage of revenues.

EBT

EBIT plus financial result.

EBT Margin

Profit/loss as a percentage of revenues.

PHEV

Plug-in-hybrid electric vehicle.

RoCE

Return on capital employed (RoCE). RoCE in the Automotive and Motorcycles segments is measured on the basis of relevant segment profit before financial result and the average amount of capital employed – at the end of the last five quarters – in the segment concerned. Capital employed corresponds to the sum of all current and non-current operational assets, less liabilities that generally do not incur interest.

RoE

Return on equity (RoE). RoE in the Financial Services segment is calculated as segment profit before taxes, divided by the average amount of equity capital – at the end of the last five quarters – attributable to the Financial Services segment.

If you have any questions, please contact:

BMW Group Corporate Communications

Dr Britta Ullrich, Finance Communications

Telephone: +49 89 382-18364

Email: britta.ullrich@bmwgroup.com

Eckhard Wannieck, head of Communications BMW Group, Finance, Sales

Telephone: +49 89 382-24544

Email: eckhard.wannieck@bmwgroup.com

Media website: https://newsroom.bmwgroup.com/global/en

Email: presse@bmwgroup.com

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.

In 2023, the BMW Group sold over 2.55 million passenger vehicles and more than 209,000 motorcycles worldwide. The profit before tax in the financial year 2023 was € 17.1 billion on revenues amounting to € 155.5 billion. As of 31 December 2023, the BMW Group had a workforce of 154,950 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action, from the supply chain through production to the end of the use phase of all products. 

www.bmwgroup.com

LinkedIn: http://www.linkedin.com/company/bmw-group/

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Instagram: https://www.instagram.com/bmwgroup

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Attached please find the Quarterly Statement to 30 September 2024 for download.

The speeches and telephone conferences for journalists and investors & analysts will be broadcast live on our website https://www.bmwgroup.com/en/investor-relations/company-reports.html:

08.30 am (CET): Speeches Oliver Zipse and Walter Mertl
09.05 am (CET): Journalists Q&A
10.15 am (CET): Investors & Analysts Q&A

Singapore. BMW Group Asia today announced that it has maintained its position as the leading premium automotive brand in Singapore due to triple digit growth in BMW BEV sales of +118.8% year-on-year for the first nine months of 2024.

“We have been leading the charge in Singapore’s mission for sustainable motoring since we introduced the BMW i3 and BMW i8 in Singapore in 2014,” said Lars Nielsen, Managing Director, BMW Group Asia. “10 years later, we continue to be a driving force with a fast-growing customer base and a strong portfolio of 14 BEVs across BMW and MINI, and varying body types and performance levels.

The YTD September 2024 growth figures (year-on-year) are as follows:

Singapore:

• BMW: +43.5%
• BMW BEV: +118.8%
• BMW M: +41.9%
• MINI: +14.4%

BMW Group Asia region:

• BMW: +5.1%
• BMW BEV: +62.9%
• BMW Luxury Class: +11%
• MINI: +15.1%

“I am proud that this growth has strengthened our goal of delivering the power of choice when it comes to various drivetrain options. We are confident in finishing the year on a strong note with our latest range of BEV and ICE vehicles and to carry this momentum into 2025!” added Nielsen.

Singapore – A lighthouse for the BMW Group Asia region.

In August 2024, BMW Group Asia had the privilege of hosting Mr. Jochen Goller, Member of the Board of Management of BMW AG Customer, Brands, Sales in Singapore. The second member of the Board of Management of BMW AG to visit in the past two years, Mr. Goller’s visit further emphasised the country’s importance as a lighthouse for BMW Group Asia and its importer markets.

Mr. Goller was provided with a 360° view of Singapore, meeting with key stakeholders, including both BMW dealer partners locally, importers from across the region, customers, and key media. He also had a chance to visit the newly opened Retail.Next showrooms, getting a first-hand look at the elevated and personalised experience BMW and MINI customers enjoy.

Expanding the BMW and MINI footprint in Singapore and Indonesia.

Customers get to benefit from greater convenience and flexibility when it comes to shopping or servicing their BMW and MINI with the following brand-new retail/service concepts in the region:

SINGAPORE

• Performance Motors BMW Showroom at 303 Alexandra Road, opened in September 2024.
• Eurokars Auto BMW Showroom at 29 Leng Kee Road, opened in October 2024.
• Eurokars Habitat MINI Showroom at 27 Leng Kee Road, opened in October 2024.

INDONESIA

• BMW Eurokars Kebon Jeruk Showroom in Jakarta, Indonesia, opened in September 2024.
• BMW Astra Cilandak Showroom in South Jakarta, Indonesia, will open by end of 2024.

BMW Group Asia welcomes the new MINI family to the region.

The new MINI family was launched in Singapore, Indonesia, Philippines, and Brunei, starting in July 2024, with the all-new MINI Cooper and all-new MINI Countryman, in both petrol and electric variants. Both models received strong praise, with Indonesia seeing an increase of 20% in sales thanks to a strong debut at the Gaikindo Indonesia International Auto Show (GIIAS). The MINI family continued to grow in Singapore with the introduction of the first-ever MINI Aceman and all-new MINI Cooper 5 Door. Both models will be introduced in additional markets in the coming months.

Experiences make the difference.

Being a part of the BMW family opens doors to once-in-a-lifetime experiences. In September 2024, the coveted BMW Golf Cup National Final took place over three days of social and tournament play at the Tampines Course located at Tanah Merah Golf Course. This year’s iteration was the largest yet, with over 1,500 participants.

Prizes from partners like Garmin, Dalmore, and Titleist were up for grabs through on-course engagements such as the Longest Drive, Nearest To Pin, and Nearest To Line. Participants could even customise their very own FootJoy MyJoy shoe, a Titleist Vokey Wedge, or a Titleist Player’s 5 Golf Stand bag as part of the BMW Shopping Cart. Three national finalist winners will go on to represent Singapore at the BMW Golf Cup World Final at Alpine Golf Club in Bangkok, Thailand, in March 2025.

In October 2024, select customers travelled to Seowon Valley Country Club in Paju, South Korea, to experience the final round of the BMW Ladies Championship 2024 and curated activities. Guests enjoyed an 18-holf round of golf at South Korea’s own BMW Golf Cup National Final, followed by a thrilling track experience in the latest BMW M vehicles and to test out the off-road capabilities of the BMW X5 at the BMW Driving Centre in Incheon.

“With BMW, you do not just get a car – you get unparalleled experiences,” continues Nielsen. “Whether it is the latest innovations in our state-of-the-art showrooms, or immersing yourself in our vibrant communities, we strive to create meaningful connections and long-lasting memories. That is our promise to our customers.”

BMW SkyTop secured for the region.

Initially shown in design study form as the BMW Concept Skytop at the Concorso d’Eleganza Villa d’Este 2024 on the shores of Lake Como, the elegant two-seater roadster sent waves of excitement throughout the luxury and automotive worlds. This rapturous response prompted BMW to convert the concept into a strictly limited production run of 50 examples, with one unit secured for the region.

The open-top two-seater celebrates BMW’s history of iconic roadsters, among them the BMW 507 and BMW Z8. The pronounced arrow shape of the bonnet, evocative BMW shark-nose design and tightening tail are all carefully chosen references to the BMW Z8. Additional information can be found here.

Established in 1985, BMW Group Asia is the regional hub overseeing the East Asia region comprising 14 markets including: Bangladesh, Brunei, Cambodia, Guam, Indonesia, Laos, Myanmar, Nepal, New Caledonia, Philippines, Singapore, Sri Lanka, Tahiti, and Vietnam.

                                                                            -End-

Munich. In a globally challenging market, the BMW Group increased its sales of fully-electric vehicles by +19,1% in the first nine months of 2024, with a total of 294,054  BEVs delivered to customers. During this period, BMW brand sales of fully-electric models rose by +22.6% to 266,151 vehicles. The MINI brand also grew its fully-electric vehicle sales by +54.3% in the third quarter, delivering 16,536 BEVs to customers.

“ Our fully-electric vehicles are winning over customers worldwide – as shown by the significant double-digit growth in our BEV sales during the first nine months of the year,” said Jochen Goller, member of the Board of Management of BMW AG responsible for Customer, Brands, Sales. “We also grew our sales in the Europe region. Our attractive model line-up, which is designed for technology openness, gained traction in the marketplace, despite the challenging conditions overall. The BMW brand captured market share in Europe and significantly outperformed the region's total market,” Goller continued.

In Europe, the BMW brand delivered 577,803 vehicles to customers between January and the end of September (+7.6%), with particularly high demand in countries including the UK, Italy and France. The BMW brand's fully-electric models also performed exceptionally well in the European region, with 121,844 vehicles delivered to customers – an increase of +35.8%.

The BMW Group delivered a total of 1,754,158 BMW, MINI and Rolls-Royce vehicles to customers in the year to the end of September (-4.5%). This downward trend can be partly attributed to delivery stops associated with the supplied Integrated Braking System (IBS), which significantly impacted the third quarter, as well as the difficult market environment in China. In light of this development, on 10 Sept. 2024, BMW AG revised its sales targets for the financial year 2024.

Between January and September, the BMW brand experienced strong demand for its fully-electric models, with a total of 266,151 (+22.6%) vehicles sold. Most notably, the BMW iX1* and BMW i4* showed positive sales development. The BMW brand sold a total of 1,583,485 vehicles (-2.3%) in the year to the end of September. BMW M GmbH delivered 146,574 vehicles in the first nine months of 2024 (+2.0%), with growth driven by the BMW M2* and BMW M3 Touring* models, among others. The MINI brand, which is updating its entire portfolio this year, delivered a total of 166,703 (-20.9%) vehicles to customers in the year to the end of September. In the third quarter, fully-electric MINI models were particularly in demand, with 16,536 vehicles delivered to customers, representing growth of +54.3%. In the first nine months of this year, the Rolls-Royce brand presented a total of 3,970 motor cars to their new owners worldwide (-12.8%).

Between January and September, BMW Motorrad delivered 163,436 (-0.9%) motorcycles and scooters to customers.

BMW Group sales in Q3/YTD September 2024 at a glance

¹BEVs and PHEVs                                                                                   

BMW & MINI sales in the regions/markets

²Provisional registration figures

The delivery figures reported in this press release are provisional and may change up until the BMW Group Report 2024 is published. Notes on how delivery figures are prepared can be found in the BMW Group Report 2023 on p. 330.

BMW Group Corporate Communications

Carolin Bachmann, Communications Sales

Telephone: +49 89 382-38801

Email: carolin.bachmann@bmwgroup.com  

Dr Sina Unger, Communications Sales

Telephone: +49 89 382-47564

Email: sina.unger@bmwgroup.com

Eckhard Wannieck, head of Communications BMW Group, Finance, Sales

Telephone: +49 89 382-24544

Email: eckhard.wannieck@bmwgroup.com

Media website: https://newsroom.bmwgroup.com/global/en

Email: presse@bmwgroup.com

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.

In 2023, the BMW Group sold over 2.55 million passenger vehicles and more than 209,000 motorcycles worldwide. The profit before tax in the financial year 2023 was € 17.1 billion on revenues amounting to € 155.5 billion. As of 31 December 2023, the BMW Group had a workforce of 154,950 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action, from the supply chain through production to the end of the use phase of all products. 

www.bmwgroup.com

LinkedIn: http://www.linkedin.com/company/bmw-group/

YouTube: https://www.youtube.com/bmwgroup

Instagram: https://www.instagram.com/bmwgroup

Facebook: https://www.facebook.com/bmwgroup

X: https://www.x.com/bmwgroup

M unich. The Board of Management of BMW AG adjusted the guidance for the 2024 financial year today.

This was triggered in part by additional headwinds in the Automotive Segment resulting from delivery stops and technical actions linked to the Integrated Braking System (IBS) that is provided by a supplier.

The delivery stops for vehicles that are not already in customers hands will have a negative worldwide sales effect in the second half of the year. The IBS-related technical actions impact over 1.5 million vehicles and result in additional warranty costs in a high three-digit million amount in the third quarter.

In parallel to this effect, the ongoing muted demand in China is affecting sales volumes. Despite stimulus measures from the government, consumer sentiment remains weak.

Considering these developments in the Automotive Segment outlined above, the BMW Group has adjusted the guidance for the 2024 financial year as follows:

• A slight decrease in deliveries versus previous year (previously: slight increase).
• An EBIT margin for 2024 in a corridor from 6% to 7% (previously: 8% to 10%).
• Return on Capital Employed (RoCE) between 11% and 13% (previously: 15% to 20%).

Free-Cash-Flow in the Automotive Segment is estimated to be above €4bn for the 2024 Financial year.

As of today, the described earnings together with additional inventory will impact the third quarter much more than the fourth quarter.

In the Motorcycles Segment, the ongoing competitive situation across core markets – including China and the USA – is having a major impact on volume and price realization. Deliveries to customers are now expected at prior year’s level (previously: slight increase). Accordingly, the EBIT margin for 2024 is expected to be in a corridor of 6% to 7% (previously: 8% to 10%) and Return on Capital Employed (RoCE) is anticipated to be between 14% and 16% (previously: 21% to 26%).

Group Earnings before Tax will, therefore, decrease significantly (previously: slight decrease).

The full quarterly results and the adjusted outlook report will be published on 6 November 2024 in the BMW Group Quarterly Statement to 30 September 2024.

The definitions of the KPIs can be found in the Glossary of the BMW Group Report 2023 on pages 338 to 343.

If you have any questions, please contact:

BMW Group Corporate Communications

Dr Britta Ullrich, Finance Communications

Telephone: +49 89 382-18364

Email: britta.ullrich@bmwgroup.com

Eckhard Wannieck, head of Communications BMW Group, Finance, Sales

Telephone: +49 89 382-24544

Email: eckhard.wannieck@bmwgroup.com

Media website: https://newsroom.bmwgroup.com/global/en

Email: presse@bmwgroup.com

- Check against delivery –

Ladies and Gentlemen,

Good morning,

SLIDE 2: BMW Group Half-Year Report to 30 June 2024

The BMW Group remains on track and confirms its targets for 2024, despite the volatile market environment.

After a successful start to the year, we again achieved an EBIT margin for the Automotive Segment within our full year target range of 8-10 percent in the second quarter, thanks to our attractive product portfolio.

At the same time, we are continuing to invest in our future model line-up and securing the company’s long-term competitiveness.

SLIDE 3: Highlights of BMW Group Performance in Q2 2024

As of June, BMW Group global sales remained on par with last year.

The BMW brand grew by 2.3 percent globally or 6.2 percent if we exclude the Chinese market.

Global growth drivers are our all-electric vehicles and models from the upper premium segment, both of which saw a double-digit increase.

The Group EBT margin came in at 10.5 percent for the second quarter and 10.9 percent for the first half-year.

The Automotive EBIT margin reached 8.4 percent in the second quarter and 8.6 percent for the half-year, both within our full year target range of 8 to 10 percent.

Excluding the depreciation resulting from the purchase price allocation of BBA, the margins came in at 9.4 percent for the second quarter and 9.6 percent through six months.

Ladies and Gentlemen,

The BMW Group is committed to maintaining its strategic focus.

We have a clear plan and a long-term strategy that we are implementing systematically.

At the same time, we remain highly flexible in our execution and are able to respond swiftly to market developments.

This enables our operating business to deliver consistently good results.

SLIDE 4: BMW Group in Q2

Let’s take a look at the financial figures in the second quarter in more detail, starting with a brief overview of the Group.

BMW Group revenues were on par with the previous year.

Group earnings before tax totalled around 3.9 billion euros, resulting in a Group EBT margin of 10.5 percent.

SLIDE 5: Automotive Retail Units, BEV Units, Auto Revenue and Auto EBIT

On this slide you can see how the Automotive Segment performed across key figures.

In the second quarter, the BMW Group delivered approximately 619,000 BMW, MINI and Rolls-Royce vehicles to customers.

The BMW brand reported sales growth of 2.2 percent.

MINI, on the other hand, saw a significant decrease from the previous year, due to the planned model changeover across the entire product range.

However, in the second half of the year, the brand will benefit from the ramp-up of the New MINI Family, with the Countryman* and Cooper*, both available in several drivetrains, as well as the all-electric Aceman*.

We continue to see sales growth of our all-electric vehicles.

The BMW Group delivered about 108,000 BEVs to customers in the second quarter. This represents 17.4 percent of our total sales.

Our electrified vehicles – in other words, BEVs, plus plug-in hybrids – accounted for almost 24 percent of total sales in the second quarter.

Segment revenues increased slightly by 1.4 percent.

Adjusted for currency translation effects, revenues saw an increase of 2.1 percent.

The significant growth in all-electric vehicles and models from the upper premium segment contributed to this. The current trend is also expected to have a positive effect on revenues for the remainder of 2024.

Revenue per wholesale unit across the entire product portfolio is expected to be in line with last year’s level.

EBIT for the period from April to June totalled 2.7 billion euros.

The EBIT margin came in at 8.4 percent for the quarter and 8.6 percent for the half-year.

Excluding the depreciation resulting from the purchase price allocation of BBA, the EBIT margin was 9.4 percent for the second quarter and 9.6 percent through six months.

That brings me to the EBIT bridge, to explain in more detail the changes in the operating result, compared to the second quarter of the previous year.

SLIDE 6: Automotive Segment EBIT in Q2

The net balance of currency and commodity positions provided a tailwind of 500 million euros over last year’s second quarter.

For the full year 2024, we anticipate a positive net balance from currency and commodity positions.

This is expected to nearly offset material cost headwinds. However, we see additional requests for supply chain support.

The net balance of volume, model mix and pricing effects in the second quarter was about 300 million euros lower year-on-year.

Volume development and the model mix made a positive contribution to this.

The global price environment for new and used cars continued to normalise in the second quarter.

The Chinese market, in particular, remains highly competitive.

For the full year 2024, we expect the net effect from volumes, model mix and prices to be neutral over last year.

Research and development expenses increased by about 100 million euros compared to the prior-year quarter.

The BMW Group's research and development expenditure remained at a high level through the end of June, totalling almost 4.2 billion euros.

The R&D ratio according to the German Commercial Code was at 5.7 percent after the first six months.

The capitalization ratio for development costs, which is relevant for R&D costs according to IFRS, was 34 percent in the second quarter and 30.8 percent as of June.

Selling and administrative expenses increased by around 100 million euros compared to the previous year, primarily driven by personnel costs and expenses for IT projects.

The headwind of 200 million euros from Other Cost Changes can mainly be attributed to manufacturing costs. Here, inflation in material costs continues to have an impact.

SLIDE 7: Automotive Segment Free Cash Flow in Q2

Free cash flow in the Automotive Segment totalled 1 billion euros in the second quarter.

The change in working capital, amounting to 500 million euros, is largely due to the planned increase in inventory levels. This ensures we can continue to meet global demand for our products in the second half of the year.

The net effect from capital expenditure and depreciation reduced free cash flow by 400 million euros in the second quarter.

Total investments for April to June amounted to around 2.6 billion euros.

The capex ratio came in at 5.8 percent for the second quarter and 4.7 percent for the half-year.

As in the previous years, the major share of capital expenditure will occur in the second half of the year and especially in the fourth quarter.

We expect a capex ratio of more than six percent for the full year.

Changes to provisions positively impacted free cash flow in the second quarter by around 100 million euros.

The change in the position Other of around 800 million euros mainly reflects regular tax payments.

After the first six months, Automotive Segment free cash flow had reached just over 2.3 billion euros.

The difference in free cashflow compared to 2023 is due to the capex increase of around 1 billion euros.

We expect to see a positive contribution from a reduction in working capital.

For the full year, we are targeting a free cash flow of over six billion euros.

Since 2022, we have made a paradigm shift in our shareholder return strategy by adding a share buyback programme that supplements our annual dividend payout.

In doing so, we have increased the payout ratio of Automotive Free Cashflow by paying dividends in our target corridor of 30 to 40 percent as well as using the share buyback program.

BMW AG is continuing with its share repurchase programme as planned. At the end of June, it had acquired shares equivalent to 5.51 percent of the existing share capital as of June 30th.

The second tranche of the second programme, totalling 500 million euros, was completed in June.

The third tranche of 500 million euros, which began in June, will be concluded no later than December 31st.

By the end of 2024, BMW AG will have repurchased shares valued at 1.5 billion euros as part of the second programme, which amounts to 2 billion euros.

SLIDE 8: Net Financial Assets

Ladies and Gentlemen,

The BMW Group has a solid and robust balance sheet, confirming the company's considerable financial strength.

This is also underscored by our net financial assets in the automotive business, which totalled just over 43 billion euros.

Starting with the Half-Year Report 2024, we are changing the way we report net financial assets in our automotive business.

In addition to the Automotive Segment’s NFA that was previously reported, the new figure also includes the NFA of holding companies within the Other Entities Segment, which receive regular distributions from their subsidiaries.

I trust that this new, comprehensive definition of Net Financial Assets provides you with useful additional information.

SLIDE 9: Financial Services Segment in H1

Let’s move on to the Financial Services Segment.

Here, the positive trend in new business continues – for financing of both new and used vehicles.

A total of about 850,000 new leasing and credit financing contracts were concluded in the first half-year. This represents a significant increase of 16.5 percent year-over-year.

The volume of new business, encompassing all new credit financing and leasing contracts, climbed 18.2 percent to around 32 billion euros.

This positive development in new business is also reflected in the portfolio. The total value of all contracts managed surpassed 143 billion euros for the first time.

Segment earnings amounted to just under 1.5 billion euros. This year-on-year decrease of 13.1 percent resulted mainly from lower income from the resale of end-of-lease vehicles, which reflects the continued normalisation of the used car market.

During the reporting period, the credit loss ratio for the entire credit portfolio was 0.25 percent (2023: 0.15 percent).

The segment’s overall business performance was better than anticipated. For this reason, we are raising our full-year guidance for Return on Equity (RoE) from a range between 14 and 17 percent to a range between 15 and 18 percent.

SLIDE 10: Motorcycles Segment in Q2

In the Motorcycles Segment, second-quarter deliveries increased by 2.6 percent compared to the prior-year quarter.

EBIT in the second quarter totalled 110 million euros, with an EBIT margin of 11.1 percent.

SLIDE 11: Outlook 2024

Ladies and Gentlemen,

the BMW Group is on course to meet its targets for the year.

The market development in China in the first half of this year has not met our expectations.

We expect that the various measures taken by the government, including the cut in lending rates in July, will lead to a stabilisation of the market starting in the third quarter.

Our overall business environment will remain challenging throughout the rest of the year.

Our guidance assumes that geopolitical and macroeconomic conditions will not deteriorate.

Group earnings before tax will decrease slightly.

We expect to see a slight increase in demand, with sales in the Automotive Segment slightly higher than the previous year. The percentage of all-electric vehicles will increase significantly.

We are targeting an EBIT margin between 8 and 10 percent and a Return on Capital Employed (RoCE) between 15 and 20 percent.

Deliveries are projected to increase slightly in the Motorcycles Segment. The EBIT margin should come in between 8 and 10 percent, with a Return on Capital Employed (RoCE) between 21 and 26 percent.

In the Financial Services Segment we are now forecasting a Return on Equity (RoE) in the range of 15 to 18 percent for the full year.

SLIDE 12: BMW Group with Consistent Strategy and Focused Execution

Ladies and Gentlemen,

The BMW Group is pursuing a clear strategic approach, focused on long-term success.

Our company maintains a globally balanced footprint. We are leveraging this balance and the high flexibility of all our systems to mitigate market volatility and consistently provide our customers with the best products to suit their needs.

We continue to systematically implement our electrification and digitalisation strategy and make targeted investments in our future model line-up.

In 2024, we are setting a decisive course for our future. Research and development spending and capital expenditure will therefore respectively peak, as planned.

We expect our R&D ratio for the full year to exceed five percent, with a capex ratio of more than six percent.

Despite these high upfront investments, we were still able to deliver a solid financial performance in the second quarter, thanks to our attractive product range.

Across global markets, we are carefully steering our performance in line with individual market conditions.

At the same time, we are maintaining a high level of cost discipline.

Whether manufacturing costs, fixed costs, or capital expenditure: at the BMW Group, we have always constantly optimized our cost structures and will continue to do so.

I am confident that our clear long-term strategy, combined with focused execution in our operational business, will keep us competitive and successful – both now and in the future.

Thank you.

- Check against delivery –

Ladies and Gentlemen,

In the past few days, several automotive manufacturers have released their half-year results: A glance at the numbers shows just how differentiated our industry is.

The basic principles are the same for everyone – which reveals even more clearly how different strategic approaches are performing in the current environment. All those who are broadly diversified are reaping the benefits.

Our own ambitions are underlined by the first six months: In the face of headwinds, we can capitalise on our competitive strength in the market.

In the first half of 2024, BMW Group deliveries were at the same high level as the previous year. Our core BMW brand is growing.

In terms of financial performance, we also deliver consistently high profitability.

For the past ten consecutive quarters, our EBIT margin in the Automotive Segment has been within our strategic target range of eight to ten percent, or higher.

At 10.9 percent, the Group EBT margin once again outperformed our strategic target of 10 percent.

Above all, our all-electric vehicles and models in the higher-priced upper segments of our BMW and BMW M brands remain in very high demand.

In our view, e-mobility will continue to be the core drive technology of the future and our primary growth driver.

We anticipated this development early – which is why we have one of the most comprehensive and attractive EV portfolios in the marketplace today. We already offer at least one BEV model in nearly every segment that is relevant for us.

This wide-ranging offering lays the foundation for our continued dynamic growth in BEVs – even in the current more challenging market environment.

In absolute terms, BMW comes in a strong third in electric vehicle sales among all OEMs worldwide.

Our impressive performance in ramping up electromobility becomes even clearer when we look at the rate of growth in the first half of the year.

With growth of 34 percent, the BMW brand is number one worldwide among all relevant major players.

Take the example of the BMW X1, a customer favourite, and our luxury sedan, the new BMW 7 Series: In the case of both vehicles, one in five customers is already opting for the all-electric iX1* or i7* variant.

In the first half of 2024, our fully-electric sport coupé, the
BMW i4*, remained our line-up's best-selling electric vehicle – once again posting double-digit growth.

I have emphasised many times that following the hype without careful consideration is not a strategy. Emotionality and nervousness have never been good counsellors.

Our strategy is grounded in facts, experience and a continuous, realistic assessment of the current situation. It has proven robust – especially in turbulent times.

The approach to drive technologies rooted in this strategy makes us resilient and secures our market success.

With our globally aligned, highly flexible production network, we are capable of responding to fluctuations in demand better than others.

Supply chain management is increasingly critical to success.

We have established processes to identify risks in our supplier network at an early stage. This enables us to take action before a risk becomes an issue. We have not had any major impact recently.

This also ensures that we can respond to regional differences in customer preferences as needed – whether for cars with internal combustion engines, plug-in hybrids or BEVs.

As a result, we have consistently outperformed EU CO2 requirements for years.

One thing is clear: The most impactful contributions to climate protection are those we can make today: In other words, every tonne of CO2 we can save today – not sometime in the future – counts.

This also entails demanding and promoting the use of low-CO2 fuels like e-fuels, E 25 or HVO100 – as quickly and as widely as possible.

These fuels could immediately improve the carbon footprint of the existing fleet of more than 250 million vehicles in the European Union.

At the moment, however, we see a significant risk of eFuels being politically instrumentalised in the debate about the ban on combustion engines from 2035.

There are currently many indications that the EU Commission is striving for a bogus solution in which the ban on combustion engines is relaxed simply by ostensibly opening up to eFuels.

However, if it then does nothing to accelerate the ramp-up of low-CO2 fuels and make their use practicable, this would be a deliberate ban on combustion engines through the back door.

We continue to believe that a categorical ban on combustion technology is wrong. And we are also publicly committed to our highly efficient engines and plug-in hybrid technology, such as that used in our new BMW X3.

As a hybrid version, the high-volume X3 enables locally emission-free premium mobility well beyond city traffic.

The new X3 will be released onto the market in the fourth quarter – initially in the US and Europe.

You all know how popular our X models are. Last year, the current X3 was the best-selling model across our entire BMW product range.

When the all-electric NEUE KLASSE ramps up at our specially-built plant in Debrecen in late 2025, it will initially launch with an X model. This will be followed soon afterwards by a sporty sedan from Plant Munich.

With the NEUE KLASSE, our aim is to once again expand our technology leadership. Preparations are in full swing and progressing according to plan – despite the challenging conditions.

Our technology clusters allow us to quickly deploy the technologies of the NEUE KLASSE across our entire vehicle portfolio – elevating it to a whole new level, regardless of the drive technology.

Mastering this degree of integration and executing it efficiently are highly complex tasks. This is precisely where future competitiveness will be decided in our industry.

It is why we continue to focus on optimising interaction between all technologies – creating a holistic mobility experience for all our customers.

Our automated driving functions provide a good example of our technological edge.

A few weeks ago, we released a world first onto the market: We are the first automotive manufacturer to offer the combination of Level 2 and Level 3 driver assistance systems exclusively in Germany in the new 7 Series.

We have already obtained Level 2+ approval for numerous BMW models in the US, Canada and – making this another field where our technology clearly sets us apart. We will solidify this leading position with the NEUE KLASSE.

Ladies and Gentlemen,

The automotive industry is a major driver of the global economy – which increasingly makes it the focus of geopolitical interests.

The issues range from growing regulation to protectionist measures in the major economic areas of the US, China and the European Union.

We are seeing global competition for raw materials and access to strategically critical technologies, such as high-voltage batteries and semiconductors, as well as advancements in AI applications.

Each region and individual state is seeking to protect its own economic interests. This also includes localising the entire automotive value chain, including supply chains.

At the BMW Group, we remain committed to open markets and opposed to artificial barriers such as punitive tariffs.

The introduction of additional import duties, like those recently imposed by the EU, leads us down a dead-end street – and will ultimately not make European manufacturers any more competitive.

On the contrary, EU tariffs on BEVs from China instead penalise European manufacturers like the BMW Group – since they also produce vehicles in China for the European market.

Additional customs duties also limit the choice of electric cars for European customers and could therefore slow down decarbonisation in the transport sector.

Measures always lead to countermeasures. Let us not forget that implementation of the Green Deal in Europe also relies heavily on raw materials and technology from China, in particular.

Ladies and Gentlemen,

The BMW Group cannot entirely escape current market and geopolitical developments. However, with our long-term, yet flexible strategy, we are in the driver's seat.

We adapt quickly and effectively as conditions evolve.

We see no reason for hasty action or fundamental course adjustments.

We will continue on our path in the future. That means, sometimes we do things differently – but always out of conviction, not merely on principle.

This is what makes us strong and successful in the long term.

The fact of the matter is: The automotive industry will remain a growth sector in the future – and we intend to make sure the BMW Group in particular benefits from it.

Thank you.

Attached please find the Half-Year Report to 30 June 2024 for download.

The speeches and telephone conferences for journalists and analysts & investors will be broadcast live on our website https://www.bmwgroup.com/en/investor-relations/company-reports.html:

08.30 am (CEST): Speeches Oliver Zipse and Walter Mertl
09.05 am (CEST): Journalists Q&A
10.15 am (CEST): Analysts & Investors Q&A

Munich. In a challenging environment, the BMW Group proves its high resilience and can confirm its full year guidance, after six months of 2024: Thanks to its extensive range of attractive products, with deliveries on a par with the previous year, the company posted an automotive EBIT Margin at 8.6% (Q2: 8.4%) in the first half of the year. Excluding depreciation from purchase price allocation related to BBA, the BMW Group posted an EBIT margin in the Automotive Segment of 9.6% (Q2: 9.4%). With a consistently high level of investment, the BMW Group also continues to strengthen its innovative power and enhance its future model line-up.

The sales success of the first half-year was largely driven by fully-electric vehicles (BEVs) and higher-priced BMW and BMW M models, which both saw double-digit growth. The BMW, MINI and Rolls-Royce brands reported a 24.6% increase in BEV deliveries to 190,614 fully electric vehicles. The BMW brand is in third place worldwide, with almost 180,000 BEVs delivered. In total, the company delivered 1,213,276 vehicles to customers across all BMW Group brands between January and June, thus reaching the same high level as the previous year (2023: -0.1%; Q2: 618,743 units; -1.3%).

At 10.9% (Q2: 10.5%), the Group EBT margin outperformed the company’s strategic target of 10%.

“Our ambition has always been: BMW sets itself apart from the competition, especially in the face of headwinds. The first six months confirm this: under the challenging conditions in the first half of the year, we are leading within our direct competitive environment with our electric growth - and at the same time, we have delivered high profitability within the full year target corridor for ten consecutive quarters,” said Oliver Zipse, Chairman of the Board of Management of BMW AG, in Munich on Thursday. "With this high degree of resilience, we can consistently invest in our future when the entire industry has to navigate through rough waters. In this way, we remain clearly on course for our largest future project, the NEUE KLASSE, with which we will raise BMW to a completely new technological level as of next year.”

BMW Group remains committed to strengthening its innovative power

In a difficult economic environment, the BMW Group has continued to push forward with the NEUE KLASSE as well as with electrification and digitalisation of its portfolio and its global facilities. As previously announced, research and development spending rose significantly, to € 4,169 million (2023: € 3,396 million/ +22.8%). The R&D ratio (according to the German Commercial Code) increased to 5.7% (2023: 4.6%). For the full year, the BMW Group expects a peak of R&D spending and an R&D ratio above 5.0%.

Higher manufacturing and personnel costs, as well as the cost of IT projects, all impacted Group earnings.

Group earnings before tax (EBT) for the first six months totalled € 8,023 million (2023: € 9,351 million; -14.2%; Q2: € 3,861 million; -8,6%). During this period, the BMW Group recorded a net profit of € 5,656 million (2023: € 6,620 million; -14.6%; Q2: € 2.705 million; -8.6%).

Share repurchase continues as planned

Following the authorisation of the Annual General Meeting of BMW AG on 11 May 2022, the company has continued to acquire treasury shares. As of 30 June 2024, BMW AG holds 11,056,731 treasury shares, with a nominal value of € 11,056,731. In total, BMW AG acquired shares amounting to 5.51% of the share capital as of June 30, 2024.

Automotive Segment with improved product mix

High sales volumes and positive product mix effects lifted Automotive Segment revenues to € 63,009 million in the first six months (2023: € 62,898 million; +0.2%; adjusted for currency translation effects: +1.8%; Q2: € 32,070 million; +1.4%; adjusted for currency translation effects: +2.1%). In China, in particular, revenues were impacted by heightened competition and weaker consumer sentiment.

The segment's EBIT stood at € 5,394 million after six months (2023: € 6,675 million, -19.2%), while for the second quarter it was down moderately year-on-year at € 2,684 million (Q2 2023: € 2,898 million; -7.4%). Segment earnings were impacted by higher manufacturing and fixed costs, as well as the planned increase in expenditure for research and development.

Automotive Segment invests heavily in the future

Higher capital expenditure in particular impacted the free cash flow of the automotive segment. It amounted to € 2,289 million (2023: € 3,141 million/ -37,2%) in the period from January to June. Total investments in intangible assets and property, plant and equipment amounted to € 4,971 million (2023: € 3,911 million/ +27.1%) – increasing by around one billion euros against the previous first half-year and thus affecting free cash flow.

Despite peak levels of capital expenditure, the BMW Group is targeting a free cash flow of > € 6 billion for the full year.

“The BMW Group aspires to be a leader in innovation. Today, we are investing more than ever, especially in the vehicles of the NEUE KLASSE and in innovative technologies. We are pushing forward with the digitalisation and electrification of our plants and introducing more efficient processes for our operating business. The future of the company has already begun – which we are implementing step by step,” said Walter Mertl, member of the Board of Management responsible for Finance. “We are maintaining our course of profitable growth, systematically managing our costs and boosting our efficiency through digitalisation and AI applications.”

Net financial assets of € 43.2 billion in Automotive Segment as of 30 June

Starting with the current Half-Year Report, the BMW Group is reporting a wider range of automotive net financial assets: In addition to the net financial assets of the Automotive segment, it now includes those of the holding companies within the Other Companies segment which receive distributions from subsidiaries. As a result of the inclusion of the net financial assets of holding companies, these intra-group distributions will continue to be reported as net financial assets. As of June 30, automotive net financial assets amounted to € 43,208 million (see Half-Year Report, p. 16).

Financial Services Segment posts significant growth

In the Financial Services Segment, the number of new credit financing and leasing contracts in the first six months of the year rose significantly to 849,908 units (+16.5%). The segment's volume of new business increased significantly to € 31,677 million (2023: € 26,797 million; +18.2%). The penetration rate increased to 41.2% (2023: 37.5%; +3.7 percentage points).

For the first six months, the segment reported pre-tax earnings (EBT) of € 1,481 million (2023: € 1,704 million/ -13.1%). The main dampening effect came from the normalisation of global used car markets, resulting in lower income from the resale of end-of-lease vehicles. During the reporting period, the credit loss ratio remained at 0.25% across the entire loan portfolio (2023: 0.15%).

BMW Group confirms guidance

Given the sustained demand for its attractive premium vehicles, the BMW Group is able to confirm its full year guidance for the year. The BMW Group expects to see slight growth in customer deliveries worldwide in the full year. In China, the company expects the economic situation to begin to stabilize in Q3. Positive momentum in H2 2024 is also expected on a global scale from the new BMW 5 Series and the current ramp-up of the MINI family.

Group earnings before tax are forecast to decrease slightly in the full year, due to higher manufacturing and fixed costs, especially personnel costs and R&D spending, than reported in the previous year. The anticipated price decrease in the global used car markets is also likely to contribute to this. In the Automotive Segment, the EBIT margin is expected to be within the corridor of 8-10% for the full year.

A slight increase in deliveries is forecast for the Motorcycles Segment, with an EBIT margin within the target range of 8-10%. The return on equity in the Financial Services segment is now expected to be in the range of 15-18% due to the current improved business development. These targets will be achieved with slightly higher employee numbers.

This guidance assumes that geopolitical and macroeconomic conditions will not deteriorate. Given the many uncertainties surrounding the existing risks and opportunities, the BMW Group’s actual business performance may deviate from current forecasts.

GLOSSARY – explanatory comments on key performance indicators

BEV

Battery Electric Vehicle.

Deliveries to customers

A new or used vehicle is recorded as a delivery once it is handed over to the end user (which also includes leaseholders under lease contracts with BMW Financial Services). In the US and Canada, end users also include (1) dealers when they designate a vehicle as a service loaner or demonstrator vehicle and (2) dealers and other third parties when they purchase a company vehicle at auction and dealers when they purchase company vehicles directly from the BMW Group. Deliveries may be made by BMW AG, one of its international subsidiaries, a BMW Group retail outlet, or independent third-party dealers. The vast majority of deliveries – and hence the reporting of deliveries to the BMW Group – is made by independent third-party dealers. Retail vehicle deliveries during a given reporting period do not correlate directly to the revenues that the BMW Group recognises in respect of that particular reporting period.

EBIT

Profit before financial result. Profit before financial result comprises revenues less cost of sales, less selling and administrative expenses and plus/minus net other operating income and expenses.

EBIT margin

Profit/loss before financial result as a percentage of revenues.

EBT

EBIT plus financial result.

EBT Margin

Profit/loss as a percentage of revenues.

PHEV

Plug-in-hybrid electric vehicle.

RoCE

Return on capital employed (RoCE). RoCE in the Automotive and Motorcycles segments is measured on the basis of relevant segment profit before financial result and the average amount of capital employed – at the end of the last five quarters – in the segment concerned. Capital employed corresponds to the sum of all current and non-current operational assets, less liabilities that generally do not incur interest.

RoE

Return on equity (RoE). RoE in the Financial Services segment is calculated as segment profit before taxes, divided by the average amount of equity capital – at the end of the last five quarters – attributable to the Financial Services segment.

If you have any questions, please contact:

BMW Group Corporate Communications

Dr Britta Ullrich, Finance Communications

Telephone: +49 89 382-18364

Email: britta.ullrich@bmwgroup.com

Eckhard Wannieck, head of Communications BMW Group, Finance, Sales

Telephone: +49 89 382-24544

Email: eckhard.wannieck@bmwgroup.com

Media website: https://newsroom.bmwgroup.com/global/en

Email: presse@bmwgroup.com

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.

In 2023, the BMW Group sold over 2.55 million passenger vehicles and more than 209,000 motorcycles worldwide. The profit before tax in the financial year 2023 was € 17.1 billion on revenues amounting to € 155.5 billion. As of 31 December 2023, the BMW Group had a workforce of 154,950 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action. The company set the course for the future at an early stage and consistently makes sustainability and efficient resource management central to its strategic direction, from the supply chain through production to the end of the use phase of all products. 

www.bmwgroup.com

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Singapore. Following an outstanding finish to Q1 2024, BMW Group Asia today announced its leading position in the premium EV segment (BMW) with the doubling of BEV sales and achievement of 33.1% EV mix in Singapore for the first six months of the year. The H1 year-on-year growth figures are as follows:

Singapore:

• BMW: +51.3%
• BMW BEV: +179%

BMW Group Asia region:

• BMW: +9.6%
• BMW BEV: +118.9%
• BMW Luxury Class: +38.8%
• MINI: +17.6%

“We are proud that BMW is the top premium EV brand and second best-selling brand overall in Singapore during the first half of 2024,” said Mr. Lars Nielsen, Managing Director, BMW Group Asia. “The future is electric and as we continue to expand our EV portfolio, customers have more options to make a seamless transition to electromobility. Our strong growth in Singapore and across the region is a testament to these groundbreaking vehicles and more importantly, the confidence that customers have placed in us.”

Exciting new models.

Following the successful launch of the new BMW 4 Series and new BMW M4 in June, and the new MINI Cooper and new MINI Countryman in July, BMW Group Asia will also be introducing the following models in the coming months:

• Internal combustion engine (ICE)
  • All-new BMW M135
  • New BMW 2 Series Coupe
  • New BMW 3 Series
  • New BMW 4 Series Gran Coupe
  • All-new BMW X2 M35i
  • All-new BMW X3
• Battery electric vehicle (BEV)
  • New BMW i4
  • First-ever BMW i5 Touring
  • First-ever BMW iX2
  • First-ever MINI Aceman
• BMW M
  • New BMW M2
  • New BMW M3
  • New BMW M3 Touring
  • All-new BMW M5

Brand footprint expansion.

Purchasing a new BMW and MINI is always a joyous occasion. Caring for the vehicle ensures that this sense of joy is felt every time the driver gets behind the wheel. This year, customers will have greater convenience and flexibility when it comes to shopping or servicing their BMW and MINI with the planned opening of the following brand new retail/service concepts:

• Eurokars Auto Service Centre at 27A Tanjong Penjuru, opened in February 2024.
• Eurokars Auto BMW Showroom at 29 Leng Kee Road in 2024.
• Performance Motors BMW Showroom at 303 Alexandra Road in 2024.
• Eurokars Habitat MINI Showroom at 27 Leng Kee Road in 2024.

Premium customer experience.

Apart from offering high quality cars, delivering top notch support to customers during their ownership journey is just as important. Digitally, BMW ConnectedDrive Upgrades enable drivers to keep their vehicle up to date. Regular, free-of-charge, over-the-air software updates ensure that the vehicle receives functional extensions and improvements. In addition, there is the option to flexibly book extra features via upgrades available for purchase.

Another digital and contactless feature that drivers can enjoy is BMW Proactive Care. They will receive proactive, individual support in every situation from error messages to the next due service. How this works is, sensors in the vehicle detect the need for servicing or possible function issues at an early stage and transmit them to BMW.

Finally, should the need arise, BMW Roadside Assistance gives drivers peace of mind as they can turn to a competent contact 24 hours a day, 365 days a year. Whether by phone, email, a click in the iDrive menu or via the My BMW App, all customers are assured of a seamless experience so that they can focus on the things that matter the most to them.

BMW World of Golf 2024.

This year’s edition is set to be the brand’s largest one yet in Singapore. Eligible participants will compete across qualifying rounds for a spot at the BMW Golf Cup National Final, taking place from 4-6 September 2024 at Tanah Merah Country Club. The top three winners will go on to represent Team Singapore in a once-in-a-lifetime experience at the BMW Golf Cup World Final in Bangkok, Thailand, from 2 – 7 March 2025.

In line with BMW’s goal to nurture the next generation of golfing talent, a total of 24 junior golfers aged 16 and under will be nominated to play nine holes before the National Final begins.

Experiential activities in Vietnam.

Things have also been exciting on the regional front with numerous experiences taking place in Vietnam. From a three-day cross-country road trip in BMW X vehicles to family day workshops, customers had the opportunity to test drive the brand’s latest models on scenic routes and bond with loved ones over art and crafts at the various BMW showrooms nationwide.

“Together with our three dealer partners, Performance Motors, Eurokars Auto and Eurokars Habitat, connecting and interacting with customers will continue to remain the top priority for us. From the upcoming LPGA tournament in South Korea and BMW M Drive Festival in Pattaya, Thailand, to MINI’s revolutionary brand new showroom in Singapore, turning dreams into reality is what we do. We are driving the future and our customers are a key part of this journey – they are by our side every step of the way,” concluded Nielsen.

Established in 1985, BMW Group Asia is the regional hub overseeing the East Asia region comprising 14 markets including: Bangladesh, Brunei, Cambodia, Guam, Indonesia, Laos, Myanmar, Nepal, New Caledonia, Philippines, Singapore, Sri Lanka, Tahiti, and Vietnam.

                                                                     -End-

Munich. With 179,557 fully electric vehicles delivered, the BMW brand achieved a +34.1% increase in BEV sales in the first half of 2024 compared to the previous year. Overall, the BMW brand grew by +2.3% compared to the previous year's period with 1,096,486 units sold in the first half of the year. The brand thereby outperformed its traditional competitors and managed to significantly gain market share in Europe. In total, the BMW Group delivered 1,213,359 vehicles of the BMW, MINI and Rolls-Royce brands in the first half of the year.

“In the first six months of the year, we saw double-digit growth of our fully-electric vehicles and models from the upper premium segment,” said Jochen Goller, member of the Board of Management of BMW AG responsible for Customer, Brands, Sales. “Despite a challenging market environment, we increased sales for the BMW brand in the first half of the year, thanks to our attractive product portfolio. The strong commitment of our BMW Group employees and our robust global retail network have made a significant contribution in this regard,” said Jochen Goller.

For the BMW brand, models from the upper premium segment are becoming increasingly popular with customers, in addition to fully-electric models. The BMW 7 Series achieved a sales growth of +22% in the first half of the year compared to the same period last year. Also, the BMW X1 and the BMW 3 Series saw strong growth compared to the previous year. BMW M GmbH also performed well, generating a great deal of interest when it unveiled the first M5* high-performance sedan with electrified drive train in June. With a total of 99,517 vehicles sold, BMW M recorded a sales growth of +5.1%. With the continuing model changeover of its complete product portfolio, the MINI brand delivered 114,054 vehicles in the first half-year. This includes the first MINI Cooper* cars from the New MINI Family, which received a very good response from customers. The further ramp-up of the MINI Cooper and MINI Countryman*, as well as the market launch of the MINI Aceman*, will provide positive momentum in the second half of the year. A highlight for the Rolls-Royce brand was the launch of the Rolls-Royce Cullinan Series II* – the most in-demand Rolls-Royce model in the brand's product portfolio. In the first half-year, the Rolls-Royce brand delivered a total of 2,819 motor cars to customers worldwide. BMW Motorrad handed over 113,072 motorcycles and scooters to customers worldwide during the same period.

The BMW Group is looking forward to the second half of 2024 with confidence. This is underpinned by the full availability of the BMW 5 Series models – including the new BMW 5 Series Touring* and the first BMW i5 Touring*, as well as the ongoing market launch of the New MINI Family. By providing a variety of drive train technologies across the product portfolio of the BMW, MINI and Rolls-Royce brands, as well as a high level of flexibility, the BMW Group is well positioned to meet varying customer preferences worldwide.

BMW Group sales in Q2/YTD June 2024 at a glance

¹BEVs and PHEVs                                                                               

BMW & MINI sales in the regions/markets

²Provisional registration figures

The delivery figures reported in this press release are provisional and may change up until the BMW Group Report 2024 is published. Notes on how delivery figures are prepared can be found in the BMW Group Report 2023 on p. 330.

BMW Group Corporate Communications

Dr Sina Unger, Communications Sales

Telephone: +49 89 382-47564

Email: sina.unger@bmwgroup.com

Carolin Bachmann, Communications Sales

Telephone: +49 89 382-38801

Email: carolin.bachmann@bmwgroup.com  

Eckhard Wannieck, Head of Communications BMW Group, Finance, Sales

Telephone: +49 89 382-24544

Email: eckhard.wannieck@bmwgroup.com

Media website: https://newsroom.bmwgroup.com/global/en

Email: presse@bmwgroup.com

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.

In 2023, the BMW Group sold over 2.55 million passenger vehicles and more than 209,000 motorcycles worldwide. The profit before tax in the financial year 2023 was € 17.1 billion on revenues amounting to € 155.5 billion. As of 31 December 2023, the BMW Group had a workforce of 154,950 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action. The company set the course for the future at an early stage and consistently makes sustainability and efficient resource management central to its strategic direction, from the supply chain through production to the end of the use phase of all products. 

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- Check against delivery –

Strong today – Strong tomorrow.
Our BMW way into the future

Dear Shareholders!

A warm welcome from BMW Welt in Munich. A lot of people talk about the transformation of mobility and the automotive industry – how one will replace the other. At BMW, we do things a little differently. We call it: continuous progress. 

Becoming a little bit better every day – that is what we aspire to. And what I, myself, am measured against. Never being satisfied with the status quo brings us closer to our ambitious goals. Step by step. Or, more fittingly, when talking about cars: mile by mile. That may sound very grounded and methodical, but it certainly yields highly effective results.

We always look to the future. That is part of BMW's vast array of experience. It gives us strength and empowers us, time and again, to take bold action: We know what we are capable of! That is why BMW is still here after 108 years. 

The film showed our Board of Management – but we are only as good as our global team. Together, we bring our combined know-how to the roads – in a very literal sense. There are currently more than 150,000 of us worldwide – representing nearly every nationality there is, united by the BMW Spirit. In autumn of last year, we surveyed all our associates around the world: 85 percent said they fully support the company’s goals and strategy. And even 93 percent are proud to work for the BMW Group.

What a boost for us!

We are mobilising them all for the next massive leap, because your company is once again reinventing itself – at precisely the right time.

You, too, my dear shareholders, are part of our BMW team. Your support for our direction gives us the momentum and latitude we need to make decisions with a long-term perspective. This traces back to legendary entrepreneur Herbert Quandt. What a legacy! The next generation is carrying forward that legacy – much like we do at the company.

We always base our strategic decisions on facts and informed analysis. This certainly requires experience and, sometimes, plain common sense, as well. This makes your company robust and ensures that we remain composed in a turbulent environment. All of this comes together in the BMW way. This approach guarantees that the following always holds true for your company:

“Strong today – strong tomorrow”.

For financial year 2023: Should you approve our proposed dividend, you will receive a payout equivalent to 33.7 percent of our unappropriated profit. During the financial year, we had revised our guidance upwards. At year-end we met all our targets. We posted solid growth in sales, reaching a new all-time high of more than 2.55 million vehicles. In fact, we are the only German OEM to have regained our pre-pandemic level.

Our Group EBT margin of 11 percent came in higher than our strategic target of 10 percent. We are consistently performing at a high level, as confirmed by our EBIT margin in the Automotive Segment, which has been within our defined target range of eight to ten percent for the past nine quarters, including the first quarter of 2024.

This allows us to continue to make substantial investments.

Our capital expenditure, as well as our research and development spending, will peak this year. We will once again be making major investments – because our actions are always geared towards the future.

Individual mobility offers tremendous potential for profitable growth and gaining market share.

Today, let's take a look at how we continue to forge our BMW way –
in four chapters.

1. Future to the max: Turning visions into reality.
2. Following our own convictions: Technology openness is effective.
3. Global success today means acting regionally.
4. The car as digital companion: We are making mobility more human, more intelligent and more sustainable.

These focal points also shed light on the topics you requested through the shareholder portal.

Turning visions into reality.

This is the first topic I would like to talk about today.

What you see right here is nothing less than the future: pure BMW – taken to a whole new level. This is where all the big topics of future mobility come together: Electric. Fully digitalised. Sustainable.

For now, they are still Vision Vehicles – but they will be on the roads in a very similar form very soon. Last year, I promised you a new Vision Vehicle, which we then unveiled at the IAA MOBILITY. The BMW Vision Neue Klasse celebrated its premiere here in Munich. You’ll see right away that it’s a sporty sedan.

No other car at the IAA received as much media coverage and positive feedback – which is just one more reason to bring along another highlight for you today: The BMW Vision Neue Klasse X – a car that very clearly reimagines the BMW X philosophy in a totally new way.

Both vehicles will compete in high-volume segments – because we want our innovations to have a broad impact, not just in niche segments. Both vehicles underline that the NEUE KLASSE is consistent and broad at the same time.

Consistent – in terms of design, technology and sustainability. Broad – with respect to the other models that will follow.

These are the two bookends of the NEUE KLASSE – with lots of room in-between that we intend to exploit. And we deliver on our promises:

Within 24 months of the start of production, there will be at least six different models on the market.

Our industry has never seen speed quite like this before – but if anyone can do it, then it’s us at BMW. We are picking up the pace on a massive scale.

Our new plant in Debrecen, Hungary, will lead the way, with the launch of the first X model in late 2025. This will continue seamlessly in 2026 with the Sedan at our main plant in Munich, as well as Plant Shenyang in China. In 2027, the NEUE KLASSE will also ramp up in San Luis Potosí, Mexico.

Our customers ask: How far can I drive on electric power? How quickly can I charge my car?

We are able to tell them: at least 30 percent farther and 30 percent faster. In practice, this means that: It only takes ten minutes to charge your car for a 300-kilometre trip – hardly enough time to grab a coffee!

This is possible thanks to the new sixth-generation round cells.  We are using them for the first time in the NEUE KLASSE – which means you can look forward to an even higher-level “BMW driving experience”.

What might look like a Playstation is actually four super-brains, each integrating several highly intelligent control units. This opens up new possibilities – from powertrain and driving dynamics, to automated driving, to how we interact with our cars.

The most important aspect for our customers is: What does the NEUE KLASSE feel like on the road? The Board of Management already had the chance to drive the pre-series – and, believe me, it gave us goosebumps.

The magnitude of the technological wave we are unleashing becomes even clearer when you realise:

The innovations of the NEUE KLASSE will be incorporated into all BMW models in the coming years, regardless of their drive technology. In simple terms: Soon, all BMW technology will be NEUE KLASSE. The NEUE KLASSE is set to become our innovation and technology booster for all future areas of activity, including design.

We aren’t just taking mobility to a new level; the BMW Group is also becoming a NEW company. I believe this is entirely in your interest as our shareholders.

My second topic for today reflects our belief in the effectiveness of technology openness.

The heart of the NEUE KLASSE is electric – running on its own, new architecture. If demand for electric vehicles continues to grow as forecast, we will be able to leverage corresponding economies of scale.

But the world is a big place – which is why we continue to serve all markets with premium products. With us, everyone can find the right drivetrain to suit their needs. Anything else would be unwise from a business perspective.

Using technology clusters and modules enables us to be highly flexible. Think of it like this: We can roll out innovations and technological advances across all architectures and segments, and scale them efficiently.

We don’t distinguish between “old” and “new” vehicles – instead, we deliver cutting-edge technology across all areas. And, moreover, we offer the best overall package. This is what we aspire to – and it is perhaps the underlying secret of your company’s success.

Let me give you a current example: Following on from the new BMW 5 Series Sedan, the new BMW 5 Series Touring also comes in four drive technologies. The BMW i5* is all-electric, with an impressive everyday range of over 500 kilometres.

Plug-in hybrids also remain extremely popular. For the new BMW 5 Series, the PHEV variant could account for about 20 percent of our sales in Europe.

This shows we are right on track with our ten attractive PHEV models. And of course, the new 5 Series is also well received as a highly efficient combustion engine.

Focused technology openness is not something that is achieved overnight. You know my position: Building cars is a highly complex task. New market players are realising this too.

It is a strength of your company – and I believe it is also a unique selling point: The ability to master this complexity, seamlessly, and to effectively orchestrate, scale and further develop technologies.

Our sales figures confirm this: BMW is maintaining its leading position in the global premium segment. Our strongest growth last year came from the upper premium and luxury class, as well as our all-electric models, or BEVs for short. We delivered over 375,000 BEVs to customers in 2023 – an increase of almost 75 percent over the previous year. 

This dynamism is also reflected in our share of the global BEV market: At 4.1 percent, it is already significantly higher than our share of the total global market, which remains stable at 3.3 percent.

Demand for BEVs will continue to climb – although not in a linear fashion; it will be dynamic and market-specific. We reiterate this time and again – and it holds true in multiple markets.

We see e-mobility as the fastest-growing drive technology – today and in the future. By 2030, all-electric vehicles should account for about half of our deliveries. We remain committed to this goal and are steering the ramp-up in line with demand. We will stay flexible – even well into the 2030s.

We are aligning our strategic planning accordingly – and enabling our architectures. In this way, we can respond quickly at all times. More than 15 BEV models will be available this year across all BMW Group brands.

Here, you can see the MINI Aceman*.

In April, it celebrated its world premiere at AUTO CHINA. The Aceman is offered exclusively as a all-electric vehicle.

It fills the gap between the Cooper* and the Countryman*, which has now grown significantly in size. The new Cooper is already sold out – at least for the next four months. The only thing missing is the new MINI Convertible, which will be released in the second half of the year.

Together, these models form the NEW MINI Family, which is effectively the counterpart to the NEUE KLASSE at BMW: MINI's leap into the future.

And: We produce the New MINI Family worldwide: at our Spotlight joint venture in China; in Oxford, in the UK; and, for the first time, also in Germany, at Plant Leipzig.

We talked about bookends earlier. Now, with our brands, let's jump from MINI go-kart feeling to our luxury brand, Rolls-Royce. Spectre* certainly hit the ground running. What a phenomenal start! 

In the first quarter of this year, this model alone accounted for 38 percent of Rolls-Royce deliveries. That is how we do e-mobility in the luxury class. Spectre glides along effortlessly, like a flying carpet. Our luxury brand's vehicles have never been as compelling and as differentiated as they are today. And let’s not forget that they also earn a significant contribution margin for the company.

BMW Motorrad is also reporting profitable growth, having celebrated its centenary in September. German Chancellor Olaf Scholz attended the anniversary celebrations at Plant Berlin-Spandau.

We shared two major milestones with him:

First, the inauguration of the new “BMW Motorrad Welt”. What BMW Welt in Munich is to cars, we now also have in Berlin for our two-wheeled vehicles. Second, the world premiere of the R 1300 GS. Many people – myself included, as a motorcycle enthusiast – have been eagerly awaiting the next-generation GS. The trade press was practically euphoric about it.

For those who prefer an electric ride in the city, BMW Motorrad’s second electric model, the CE 02, is perfect.

Our core BMW brand also has a slew of upcoming, exciting vehicles, with 14 launches and numerous model variants this year alone.

The BMW 1 Series will be released onto the market in the compact class.

And we will launch the new BMW X3 – one of our most popular models overall. The new X3 will be available with a highly-efficient combustion engine and as a plug-in hybrid variant.

We recently presented our new and future vehicles to our retailers, including 1,500 retailers from all over Europe in Amsterdam. We did the same in Las Vegas for over 1,000 dealers from the Americas region. I got the sense at both events that our retailers are genuinely excited about what is to come.

Especially for Europe, I have to stress: The retailers will remain by our side in the new sales system – that won’t change. We are already using direct sales for MINI in China and reporting positive experiences in the first European countries. We will be transitioning the BMW brand to the new direct and fully digitalized sales model in Europe from 2026, as planned.

You, our shareholders, also wanted to know:

How are we progressing with hydrogen?

Our BMW iX5 Hydrogen* is currently on a world tour, undergoing real-life testing. It is very well received, everywhere it goes. Our pilot fleet is raising awareness of hydrogen's role in the energy transition – both for mobility and across industries. You rightly expect us to meet the European Union's CO₂ requirements.

In 2023, the BMW Group significantly outperformed the CO₂ fleet limit set for us by the EU by more than 20 percent. This year, we expect to see another slight reduction, with all brands and drivetrain variants contributing.

Technology-centric, with a clear focus on e-mobility – we are always consistent in our actions: This is how we are reshaping perception of your company.

What the New York Times writes is precisely researched.

In March, the New York Times praised our drivetrain strategy as far-sighted and consistent. It described BMW as a “winner in electric vehicles” – and Tesla's only serious competitor. We can certainly live with that. People expect us to consider things carefully and come up with practical solutions – because we consistently demonstrate our ability to do so.

In part three, I’ll look at the reasons for our global success – which, now, more than ever, requires us to act regionally. If you look closely, your company stands out as one of the automotive industry's few “truly” global manufacturers.

Something like this has to grow systematically – and we have been expanding our footprint for this purpose over the decades.

Let me give you three examples:

China – our biggest single market; Europe – our most important sales region; the US – our “second home”:

First: China, where we employ about a fifth of our workforce. It is – after Germany – our second-largest R&D location. BMW enjoys a high level of trust there – and not just among our own customers. We are highly regarded as a company, because we enter into serious, long-term commitments.

This year, we are celebrating 30 years “at home in China” and more than two decades of commitment in Shenyang.

In April, we signed a new investment agreement with Liaoning Province, worth 20 billion renminbi or 2.5 billion euros. The Shenyang production site of our BBA joint venture is transforming into a BMW iFACTORY.

Also in April, I was part of German Chancellor Scholz's economic delegation to China. Shortly after that, I was in Beijing at AUTO CHINA, where Prime Minister Li Qiang visited precisely one non-Chinese manufacturer – and that was the BMW Group.

A phrase I hear a lot in China is “China speed”. This is a dynamic country – and we are picking up the pace to keep up: Just last week, our six-millionth vehicle produced in Shenyang since 2003 rolled off the assembly line. We only reached the five million mark about a year earlier. This means we turned out one million vehicles in just 15 months – that is true “China speed”.

Second: Europe.

We sell nearly a third of all our vehicles in the European Union, where we operate ten plants and maintain a broad supplier base. We all benefit from a united Europe – every single day – and should channel all our collective efforts into preserving it.

BMW maintains a global outlook. This is something the chair of the General Works Council and I have reiterated. We urge our associates to pay close attention whenever seemingly simple solutions are proposed for complicated issues.

Enjoying democracy means living democracy – and that includes participation, exercising your right to vote and raising your voice to stand up for democracy. That is why we have asked everyone to vote on June 9.

What applies to Europe, applies even more to Germany: We need the best minds – and the smartest minds think very carefully about where they want to go. That is why we support the “We stand for values” initiative.

In Germany, we have many debates about emotionally charged trigger points. There is broad consensus on meta-topics. This is how sociologist Steffen Mau describes it. His latest study comes to the conclusion: We are not a divided society.

As a result, we shouldn’t speak ill of our country and Germany as a location, but leverage our potential. I can only agree with that.

Third: the USA.

We refer to the US as our “second home”. Next year will be our 50th year in the United States.
In 2023, your company was once again one of the largest net exporters of vehicles from the US by value. Germany is the only place where we have a higher purchasing volume than the US, which currently totals 6.7 billion euros annually.

For over 25 years, we have been a local partner – particularly in South Carolina. Today, Spartanburg is our largest plant – and the whole of the surrounding region has grown with us.

China, Europe and the US: Three examples of how our local presence forges close ties with the regions and markets.

We are living proof that everyone benefits when people work together. That is also one of the reasons why your company continued to grow in all major regions of the world in 2023.

We do business around the globe – and benefit from an integrated global economy.

Now, our global world order is evolving – from a “unipolar world” to a “multi-polar world”, especially in the last 10-15 years. Authors like Carlo Masala talk about the highly integrated and largely self-sufficient economic areas now emerging. We remain committed to open markets and free trade.

I also say this with a view to the European Union's current deliberations over Chinese imports of electric cars. A 360-degree perspective would be better: 20 percent of all BEVs sold in Europe last year came from China; well over half were western brands, including BMW.

Protectionism triggers a spiral effect: Tariffs lead to new tariffs, with protectionism rather than cooperation.

My over 30 years of experience at BMW suggest that solutions come about when we reach out to one another – and when we are prepared to make compromises ourselves.

That is how we build a consensus that makes us stronger as a society and an economy and enables us to take action.

You are justified in asking how your company secures access to diversified, fragmented markets.

The answer is: by continuing to invest at local level. Also, by finding local solutions and partners for the upstream value chain.

“Local for local” is our recipe for success – and we are now applying this same principle to producing cells for the batteries needed for e-mobility.

Who has control over technological expertise and urgently needed raw materials? That is what decides the competitiveness of companies and economic areas. We locate production facilities for BMW high-voltage batteries close to our vehicle plants – in Hungary, the US and China. Just a few days ago, we laid the foundation stone for the high-voltage battery assembly in San Luis Potosí, Mexico.

The benefits for us are clear: Short transport distances and supply stability in the event of unforeseen events around the globe.

And to get really local: Have you heard of Irlbach-Straßkirchen in Lower Bavaria? It will supply Gen6 batteries for our plants in Bavaria from 2026 onwards. The process wasn’t entirely straightforward. Residents wanted to know: What are the benefits for our region? We engaged in in-depth discussions with them to build trust. Ultimately, an overwhelming majority voted in favour of the new BMW location.

As you can see: Global only works at local level – and this also applies to our supply chains.

We have learned in recent years how vulnerable and susceptible to disruption they can be. Take a guess: How many parts do you think our plants worldwide need to be supplied with every day? The answer is:
36 million. The right quantities have to be in the right place, at the right time, in the best quality.

Our digitalised “i Supply Chain” strategy ensures resilient supply chains.

Our “RiskHub” uses AI and data analytics to identify quality issues in the supplier network early. We also adopt a proactive approach to avoid supply bottlenecks.

You might already have heard of Catena-X. There’s tremendous potential here: Automotive manufacturers, suppliers and, soon, recyclers, are creating a shared data ecosystem that makes sprawling supply chains transparent and allows us to track the carbon footprint of individual components. The type, quantity and source of the raw materials installed can also be digitally documented, allowing us to “trace” them.

And we are about to embark on a pilot project: Plant Landshut produces the kidney grille for the BMW iX* – one component made of many individual components. We will be using data from Catena-X to measure the total carbon footprint of production.

Wherever we collaborate with suppliers, we do so as partners, always treating each other as equals. This is important to me.

Chapter four of my speech focuses on the car as a digital companion: We are making mobility more human, more intelligent and more sustainable.

The world of bits and bytes is highly dynamic. Digitalisation, hand in hand with artificial intelligence, is fundamentally changing how we experience mobility. The questions you submitted through the shareholder portal indicate that this interests you, too.

Intelligent, self-learning systems have long been part of our strategy for the automotive production of the future. You know this as BMW iFACTORY.

Digital added value can be experienced directly in our vehicles, but our approach here remains: Not everything that is possible also makes sense in a car.

Our Head-Up Display is a classic. 20 years ago, we brought this technology from the aeroplane into the car. Now, we are revolutionising this display concept in the NEUE KLASSE.

Take a look for yourselves: Our “BMW Panoramic Vision” uses the full width of the windscreen. Pure high-tech. But we also use digitalization to increase security. In this case, we reduce distraction while driving.

We have grown used to always getting the latest updates from our digital devices – and people expect the same from their cars. Over the air means we can update software in the vehicle at any time, without bringing it in to the workshop. We chose this route early.

Today, your company has the world’s largest fully upgrade-compatible fleet in the market. We can already reach more than 7.5 million vehicles. 

The BMW 5 Series sets the standard for automated driving. It is the first car in Germany to be approved for partially automated driving at speeds up to 130 km/h on motorways.

This means you can take your hands off the steering wheel while driving. Your car can also change lanes by itself, when you briefly glance in the side mirror. Active Lane Change Assistant with eye confirmation – a somewhat unwieldy name for a genuine world first.

Since March 2024, Highway Assist has also been available in the BMW 7 Series, X5, X6, X7, iX and XM*. That's level 2+.

The new BMW 7 Series does even more:

You can even temporarily turn your attention away from the road. It fascinates me, every time the car regulates its own speed, distance and tracking. That is Level 3 highly automated driving – available in the new BMW 7 Series since March. A digital driving experience needs to ensure the safety of all road users.

That is why your company only introduces mature technical solutions onto the road– no beta versions. No experiments at the expense of our customers. You can always rely on that.

Since summer 2023, we have been testing automated driving and parking functions all the way up to Level 4 fully automated driving at our new centre for automated driving in Sokolov in the Czech Republic.

Esteemed Shareholders,

The US publication Time Magazine and the online platform “Statista” analysed and compared 750 international companies: Your company did exceptionally well to make it into the top ten and was, in fact, the highest-ranked automotive manufacturer. 

Revenue growth, sustainability and employee satisfaction – many people consider these to be conflicting goals. We find a way to reconcile them.

Our markets are dynamic and the geopolitical environment uncertain. This impacts us – just like it does other companies.

You are counting on us to remain successful – and, indeed, we will! We have ambitious plans for the current financial year. We expect to see a slight increase in sales, compared to the previous year, as well as a significantly higher percentage of all-electric vehicles.

The first fourth months of 2024 show that we are on track for all key performance indicators.

As CEO of BMW, I travel the world a lot. Everywhere I go, I see not only how valuable individual mobility is for many people, but how essential it is.

My experience is also that the BMW Group is appreciated and recognised in all corners of the globe. All of this encourages us to continue forging our own BMW way.

We are able to withstand the headwinds when we have confidence in our direction – which we usually do.

Your company is part of the global community. We engage with it – and evolve in and alongside it. That is extremely important.

The BMW way is also about our capacity for resonance – a term from physics that is also used in sociology.

So, what do I mean by capacity for resonance?

I’m talking about our ability to perceive and understand our relationship with the world – in Germany and elsewhere. We pay attention to developments, absorb them – and give something back to society in return. 

This is a natural process we actively participate in and control.

We remain open to all input, but never allow ourselves to be influenced without careful consideration or emotionalised by trigger points. Above all, we avoid drifting aimlessly.

We are in permanent resonance with our evolving society – consciously and for our mutual benefit. And always focused on effectiveness.

The following therefore holds true for your company:

“Strong today – strong tomorrow”.

Another compelling reason for you to continue to stand by us!

Thank you.

Ladies and Gentlemen,

The figures for the first quarter of 2024 underline once again that: Our strategy for long-term, profitable growth is robust and effective – especially in the dynamic environment in which we operate.

These conditions are the same for all players within our industry. However, there are currently three distinct groups of commercial actors, each with their own approach.

1. The newcomers: the ones who generate a lot of hype with single products. They often have only individual technological highlights, such as maximum performance, the largest range or the largest screen. 
It remains to be seen whether the overall package will meet high customer expectations, especially in the premium segment, over the entire lifecycle.
Additionally, they face the challenge of managing complexity as they scale up and expand. Market entry is also bought with aggressive price positioning.

2. Then, there are the established manufacturers, who are trying to copy these new players’ approach, but run the risk of losing their own identity.

3. And, finally, there are a number of manufacturers who are struggling to keep pace with change – and therefore remain entrenched in their traditional business models.

In this competitive space, the BMW Group continues to chart its own, balanced course.

And we remain true to ourselves.

We analyse and anticipate both current and future trends without prejudging the outcome. From this, we develop our strategic approaches. The ability to respond to market developments, customer needs and new technological approaches is essential.

This has earned us a leading position in e-mobility and, at the same time, allowed us to maintain consistently high profitability, even in a volatile environment.

For nine quarters in a row, our EBIT margin in the Automotive Segment has been within our target range of 8 - 10 percent or higher, like it was in the first quarter of 2023. Walter Mertl already explained the reasons for this.

Our development efforts are focused on technologies that deliver real added value for our customers. Decades of market experience have taught us what our customers want throughout the entire customer journey. We use this knowledge and our technological expertise to create the perfect overall concept.

This is not easy to replicate.

The BMW Group is also one of the few “true” global players in the automotive industry. From production, to sales, to suppliers – we are in a strong position in all major markets.

We have well established footprints in each region along with a local-for-local mindset.

This global approach is our greatest strength. It creates resilience, opens up opportunities and keeps us flexible.

We are building on this to leverage our business success – today and in the future.

A look at global regions shows that markets and customer demand continue to develop in a highly diversified way. Maintaining a presence in all major sales markets enables us to balance out these different trends.

Our unique BMW approach allows us to respond flexibly to changing demand, especially when it comes to drive technologies.

But let me be quite clear: We continue to ramp up e-mobility at a fast pace that our competitors can barely keep up with.

Just a few weeks ago, we hit an important milestone: Since the market launch of the BMW i3, we have delivered more than one million all-electric vehicles to customers. This confirms the appeal of our fully-electric product range.

This is also backed up by our current figures in the Chinese BEV market. With growth of more than 18% in China in the first quarter, BMW outperformed both the total market for electric vehicles and the electric premium segment.

This means: We are gaining segment share in the world’s biggest e-mobility market.

However, our success in China is not just evident from the numbers. The BMW Group is held in high regard there as a "local player".

I experienced this when I was part of the business delegation led by German Chancellor Olaf Scholz in April. And we were also very pleased that Premier Li Qiang took the time to visit the BMW Group stand at Auto China in Beijing.

We are confident about long-term economic prospects in China. We are therefore comprehensively preparing our joint venture BBA's production site in Shenyang for future vehicle models.

In late April, we signed a Memorandum of Understanding to this effect in Shenyang, for investments totalling around 2.5 billion euros.

Our highly diversified electric offering, across BMW, MINI and Rolls-Royce, is not just in demand in China, but worldwide.

With sales up by about 28 percent, fully-electric vehicles once again made an important contribution to the BMW Group's sales growth and earnings in the first quarter of 2024.

At Auto China, a few weeks ago, we presented two vehicles that will reinforce this trend:

the all-new fully-electric MINI Aceman* and an update to the electric BMW i4*.

The BMW i4 comes straight from the heart of the BMW brand and is a success story in its own right. People love its combination of e-drive, design and signature driving dynamics – all the things they associate with the BMW brand.

More than 80,000 customers bought a BMW i4 last year – making it one of the best-selling BEVs in the entire premium segment.

MINI is also continuing on a path that is just as brand-authentic and modern.

The “New MINI Family” is a real game changer that reimagines the brand's unique British heritage in an entirely new way for the future.

The all-electric MINI Aceman brings fresh impulses. With this latest addition, the New MINI Family now features three models that serve different segments and appeal to new customer groups.

This will enable us to continue and expand the MINI success story in our global markets.

Our growth and economic success today are laying a solid foundation for the future.

We are investing more than ever in developing new products, efficient technologies and automated driving functions, as well as in digitalisation.

As the biggest single investment in the history of the company, the NEUE KLASSE shows how we are redefining the BMW brand for the future.

From design, to drive trains, to totally new forms of digital interaction between human and machine – the NEUE KLASSE represents a massive leap into the future across virtually all fields of technology.

All future BMW models will benefit from this – regardless of their drive technology. In this way, we are able to ensure that our customers always have the latest technology on board.

The NEUE KLASSE will start out with a Sports Activity Vehicle and a sedan in the current 3 Series segment.

We provided a glimpse of what this future will look like for BMW at our Annual Conference.

The BMW Vision Neue Klasse and the BMW Vision Neue Klasse X showcase both the consistency and the breadth of the NEUE KLASSE.
There is plenty of room between the two vehicles for innovation and new models – and we intend to use it.

Ladies and Gentlemen,

The BMW Group is growing – despite the many different challenges we face. Even in times of change, we deliver positive financial results at a consistently high level.

The course we are charting today will enable us to build on this success in the future – across all our brands and products, with next-generation technologies and within the company.

We are in a strong position globally and maintaining our leadership of the global premium segment.

We recognise that there are a lot of new players looking to gain a foothold in this highly attractive segment – and, of course, we are taking this very seriously.

But this is not a one-way street. You can be sure of that: Every player in this industry, whether an ambitious newcomer or an established manufacturer, is also keeping a very close eye on the BMW Group.

Ladies and Gentlemen,

Good morning,

SLIDE 2: BMW Group Quarterly Statement to 31 March 2024

The BMW Group had a successful start into 2024.

Both sales and earnings for the first quarter were in line with our expectations. This results from the focused implementation of our strategic priorities.

At the BMW Group, we have strong brands and attractive products, which create ongoing high demand and a profitable operational business.

SLIDE 3: Highlights of BMW Group Performance in Q1 2024

In the first three months, the BMW Group delivered just under 595,000 vehicles to customers. This is a slight increase of 1.1 percent over the same period of last year.

Our all-electric vehicles, in particular, made an important contribution, with growth of 27.9 percent.

If we look at the BMW brand alone, that number was 40.6 percent.

At the same time, sales of models in the upper premium segment also recorded significant double-digit growth of more than 21 percent.

The Group EBT margin for the first quarter came in at 11.4 percent, which is above our strategic target of 10 percent.

The EBIT margin in the Automotive Segment was 8.8 percent. This falls clearly within our target corridor of 8 to 10 percent.

Ladies and Gentlemen,

This quarter confirms once again that the BMW Group's operating business consistently delivers strong results.

We have a clearly defined long-term plan. And we have significant flexibility in our systems and processes. This allows us to adapt quickly to developments and take advantage of market opportunities.

On this basis, we expect to operate at a consistent level throughout 2024.

SLIDE 4: BMW Group in Q1

Let’s take a look at the financial figures for the first quarter in more detail.

I’ll start with a brief overview at Group level.

BMW Group revenues were on par with the previous year.

Group earnings before tax totalled around 4.2 billion euros, resulting in a Group EBT margin of 11.4 percent.

SLIDE 5: Automotive Retail Units, BEV Units, Auto Revenue and Auto EBIT

And now more details on how the Automotive Segment performed across key metrics.

In the first three months, the BMW Group delivered 595,000 BMW, MINI and Rolls-Royce vehicles to customers.

The BMW brand reported growth of 2.5 percent.

Due to the upcoming model changeovers MINI sales were down 9.4 percent from the previous year. The New MINI Family, comprising the Countryman*, the Cooper* and the Aceman*, will boost MINI sales – particularly in the second half of the year.

This sales development is also reflected in segment revenues. Adjusted for currency translation effects, revenues saw a slight increase of 1.5 percent.

Both the higher sales volume and positive product mix effects from the upper price segment and BEV contributed to the increase in revenues in Q1 2024.

This is expected to provide a tailwind for revenues also in the remainder of 2024.

Furthermore, prices across the product portfolio are expected to be in line with last year’s level.

The electrification of our product line-up continued to generate substantial sales momentum in the most recent quarter.

Almost 83,000 fully-electric vehicles were sold – or 13.9 percent of our total sales.

Taken together, BEV and plug-in hybrids accounted for about 21 percent of total sales in the first quarter.

EBIT for the period from January to March was 2.7 billion euros, with an EBIT margin of 8.8 percent.

This means that the first quarter of 2024 is in line with the consistent trend in profitability since the beginning of 2022.

Q1 2023 was exceptional, as the effects of inflation were not yet fully reflected in the operating result.

I will provide more details on the Q1 year-on-year development with the EBIT bridge.

SLIDE 6: Automotive Segment EBIT in Q1

Changes in commodity prices accounted for a positive impact of around 200 million euros. Currency effects remained neutral.

For the full year 2024, we anticipate a positive net balance from currency and commodity positions.

The net balance of volume, model-mix and pricing effects is about 300 million euros lower than for the first quarter of 2023.

Increase in volumes made a slight positive contribution.

The double-digit growth by models in the upper price segment almost entirely compensated the effect from the higher BEV share.

Starting with the second quarter of 2023, we began to see increased competition due to better availability of vehicles in the market. This led to a gradual softening of the global price environment for new and used cars, which has continued into the first quarter of 2024.

For the full year 2024, we expect the net effect from volume, mix and pricing to be slightly positive, as planned.

We expect additional momentum from models like the new BMW 5 Series, which is currently ramping up in markets across the globe. In China, it launched after the Lunar New Year holiday and has therefore only been in showrooms for a few weeks.

Full availability of the BMW 7 Series will also have a positive effect.

Moving on, we come to research and development expenses – which were 200 million euros higher than in the prior-year first quarter.

Based on Group R&D expenditure, the R&D ratio according to the German Commercial Code came in at 5.4 percent.

Our R&D activities remain focused on the electrification and digitalisation of our entire vehicle fleet. We are constantly developing attractive new models, like the NEUE KLASSE or the next generation of the BMW X5.

Sales and administrative costs were 100 million euros higher than the previous year. This is largely due to IT projects and the increase in personnel costs, which was implemented from the third quarter of 2023.

The headwind of 700 million euros from Other Cost Changes essentially results from two areas.

The first is manufacturing costs.

Sales margins in the first quarter of 2023 still benefitted from a lower level of purchasing prices in 2022.

This led to a positive EBIT effect in Q1 2023 as inventories with lower manufacturing costs were sold.

Starting in Q2 2023, we saw an elevation in costs that has carried through into Q1 2024.

Another reason for the difference in other cost changes is income from the resale of end-of-lease vehicles.

As expected, income was lower than in the first quarter of 2023, yet remains positive.

The normalisation we have been seeing in the used car market over the past twelve to fifteen months has gradually continued.

SLIDE 7: Automotive Segment Free Cash Flow in Q1

Free cashflow in the Automotive Segment totalled about 1.3 billion euros in the first quarter of 2024.

The difference to the first quarter of 2023 mainly results from the lower EBT.

Inventory levels rose during the first quarter, in line with planning. This contributed to the change in working capital, which amounts to 1.2 billion euros.

The increase in stock will ensure that we can service the expected customer demand.

The net effect from capital expenditure and depreciation also reduced free cash flow by 200 million euros.

Capital expenditure for January to March totalled around 1.3 billion euros. This was mainly allocated to new models and structures, with a clear focus on electrification and digitalisation as well as automated driving systems.

The capex ratio for the year to the end of March was 3.6 percent.

Changes in provisions and in the position other, such as tax payments, had no net impact on free cash flow.

In the first quarter of 2024, investments totalling 2.3 billion euros were made into future models and innovations. Nevertheless, the Automotive segment generated 1.3 billion euros in free cashflow.

For the full year, the BMW Group is targeting a free cashflow above 6 billion euros in the Automotive segment, despite the planned peak investments in R&D and capex in 2024.

The strong underlying free cashflow generation supports our ongoing and consistent shareholder return.

As part of the share buyback program BMW AG has acquired shares equivalent to 5.03 percent of the share capital in place on March 31st.

The second tranche of the second program with a volume of 500 million euros is currently in progress and will be completed no later than June 28th.

Currently we see no reason not to continue with tranche three immediately after conclusion of tranche two.

SLIDE 8: Financial Services Segment in Q1

In the Financial Services Segment, the positive trend in new business from the second half of 2023 continued through the first three months of 2024.

The number of new contracts concluded with retail customers increased significantly by 21.5 percent year-on-year to reach 422,000 contracts. Financing for both new and used vehicles contributed to this growth.

In line with this, the volume of new business grew by 22.1 percent to just over 15.6 billion euros.

Segment earnings for the first quarter amounted to 730 million euros – a decrease of 215 million from the previous year.

This can be attributed both to higher credit risk provisioning and the normalisation of income from the resale of lease returns.

The credit loss ratio across the entire loan portfolio remained at a low rate of 0.21 percent.

SLIDE 9: Motorcycles Segment in Q1

In the Motorcycles Segment, first-quarter deliveries decreased slightly by 3.1 percent year-on-year.

EBIT for the year to the end of March totalled 106 million euros, with an EBIT margin of 12.2 percent.

SLIDE 10: Outlook 2024

Ladies and Gentlemen,

After a successful first quarter, we expect the solid business performance to continue throughout the year 2024.

Therefore, our guidance for key performance indicators remains unchanged.

This is based on the assumption that geopolitical and macroeconomic conditions do not deteriorate.

Group earnings before tax are projected to decrease slightly.

In the Automotive Segment, we are planning for slight year-on-year sales growth – with the percentage of all-electric vehicles set to increase significantly.

We expect to see an EBIT margin of between 8 and 10 percent and a Return on Capital Employed (RoCE) of between 15 and 20 percent.

Sales should be slightly higher in the Motorcycles Segment, too. The segment's EBIT margin should come in at between 8 and 10 percent and Return on Capital Employed (RoCE) should be between 21 and 26 percent.

In the Financial Services Segment, we are targeting a Return on Equity (RoE) in the range of 14 to 17 percent for the full year.

SLIDE 11: BMW Group with Consistent Performance

Ladies and Gentlemen,

The BMW Group combines a robust financial performance in its current business with a long-term perspective for the future.

We have a range of highly attractive products in the market and we are continuously developing new models that will set the standard for driving experience, digitalisation and connectivity.

As planned for and previously announced, our research and development spending, and our capital expenditure, will respectively peak in 2024.

We expect our R&D ratio for the full year to be above 5 percent, and the capex ratio above 6 percent.

Our underlying profitability allows us to finance these investments in the future and at the same time yield attractive returns to our shareholders.

We continue to steer the company in line with our strategic priorities. And we deliver what we promise.

Our flexibility allows us to quickly adapt to market fluctuations and to meet customer demand across the globe.

This ensures that we capitalize on market developments and deliver strong results through consistent execution.

Thank you.

Attached please find the Quarterly Statement to 31 March 2024 for download.

The telephone conferences for journalists and analysts & investors will be broadcast live on our website https://www.bmwgroup.com/en/investor-relations/company-reports.html:

08.30 am (CEST): Speeches Oliver Zipse and Walter Mertl
09.05 am (CEST): Journalists Q&A
10.15 am (CEST): Analysts & Investors Q&A

Munich. The BMW Group continues its successful course in 2024: parallel to its dynamic BEV ramp-up, the company achieved its margin targets. In the first three months of the year, the company delivered around 83,000 all-electric vehicles from its BMW, MINI and Rolls-Royce brands and increased BEV sales by around 28 percent. The BMW brand overall increased its sales by 2.5%. At the same time, the EBIT margin in the Automotive segment of 8.8 percent was within the target range of 8-10 percent, according to the full-year guidance. At 11.4 percent, the EBT margin at Group level was above the strategic target of >10 percent.

After the challenges of the corona pandemic and semiconductor availability, the company has consistently delivered quarter by quarter within its 8-10% strategic EBIT corridor since Q1 2022. This has been achieved in parallel to its rapid ramp-up of electric mobility: Over the past two years, the BMW Group delivered more than 1.1 million electrified vehicles to customers. More than 60 percent of these were purely electric BEV models. The BEV share continues to rise steadily, as planned.

In the first quarter of 2023, the EBIT margin of Automotive segment was 12.1%. The EBIT of previous year’s first quarter benefited from the lower purchase price level of 2022, as inventories with lower manufacturing costs were sold. The inflation-related increase in manufacturing costs impacted the profit & loss statement of BMW AG after the second quarter of 2023. The higher cost level has carried through into Q1/2024.

“The past nine quarters underline BMW’s continuity and reliability: As planned, we are dynamically expanding the share of electric vehicles while maintaining our high level of profitability. Some call this transformation — for us, it is continuous progress,” said the Chairman of the Board of Management of BMW AG, Oliver Zipse, on Wednesday. “We will remain on this course: We offer our customers the latest innovations and the latest technology — across all vehicle drivetrains. As a result, we continue to generate strong demand with strong products.”

Automotive markets on upward trend – BMW Group deliveries increase

With a total of 594,533 automobiles delivered to customers in the first three months, the company posted a slight growth of 1.1% compared to the previous year and reaffirmed its leading position in the global premium segment.

Throughout the three-month period, the major automotive markets largely showed an upward trend based on catch-up purchases and increased sales in the mid-price volume segment. The BMW Group benefited with its young and highly attractive product line-up: The BMW brand sold 530,933 units in the first quarter – an increase of +2.5% year-on-year. It achieved sales growth of 2.4% (84,475 units) in the USA and significant growth of 10.2% in Europe with 188,863 units delivered. In China, the volume segment developed dynamically in lower price ranges, while the premium segment declined slightly. The BMW brand sold 182,998 vehicles, in line with segment development (2023: 190,774 units/-4.1%). In Germany, deliveries grew by 4.6% to 49,509 premium vehicles.

The popular BMW i4*, as well as the BMW iX1* and BMW i7*, were among the biggest growth drivers of the 78,682 BMW BEVs delivered. The BMW brand’s fully-electric vehicles saw particularly strong growth of +40.6%. A total of 122,582 BMW Group electrified vehicles, BEVs and PHEVs, were delivered to customers, which represents a sales share of almost 21%.

Further sales momentum is expected over the course of the year from the BMW iX2* and BMW i5*, which are currently ramping up.

Fully-electric models increased to 13.9% of total sales (2023: 11.0%). Once again, the models of upper price segments also proved to be important growth drivers – with deliveries up 21.6%.

The MINI brand is undergoing a comprehensive model changeover. For the first time, the new MINI Countryman*, was recently launched with a pure-electric drive train alongside the familiar internal combustion engine. This will be followed by the new MINI Cooper*, which comes in mid Q2 with a combustion engine or as a fully-electric vehicle. The all electric MINI Aceman* recently celebrated its world premiere at the Beijing Motor Show and is the brand’s first cross-over model for the premium small car segment. These new models are expected to deliver additional momentum from 2^nd half of 2024. MINI delivered 62,075 vehicles to customers in Q1 (2023: 68,541 units/-9.4%).

The Rolls-Royce brand made an impressive e-mobility debut with the Rolls-Royce Spectre*: In the first quarter of 2024 alone, the Rolls-Royce luxury brand handed over 579 fully-electric super coupés to their new owners; 38% of the total 1,525 cars delivered were electrified (2023: 1,640 automotive/-7.0%).

  Currency-adjusted Group revenues increased slightly

First-quarter Group revenues totalled € 36,614 millionand were, therefore, on par with the previous year’s record high (2023: € 36,853 million/-0.6%). Group revenues were buoyed by higher sales volumes and a more favourable product mix.

Group EBT margin outperforms target of >10%

Between January and March, the BMW Group reported pre-tax earnings (EBT) of € 4,162 mi llion(2023: € 5,129 million/-18.9%). The EBT includes a financial result of € 108 million (2023: € -246 million), which reflects the market development in interest rate and currency hedging transactions. The EBT margin for this period was 11.4% (2023: 13.9%) and was above the >10% full year target. Group net profit for the first quarter totalled € 2,951 million (2023: € 3,662 million/-19.4%).

BMW AG continues its share buyback programme

With the authorisation of the Annual General Meeting of BMW AG on 11 May 2022, the company initiated the purchase of shares. Shares purchased in programme one have already been cancelled. As of 31 March 2024, BMW AG holds 8,004,314 treasury shares, with a nominal value of € 8,004,314. Based on this authorisation, BMW AG purchased shares equivalent to 5.03% of the share capital as of March 31, 2024.

8.8% Automotive Segment EBIT margin within full-year target range

The Automotive Segment earned revenues of € 30,939 million in the first quarter (2023: € 31,268 million/-1.1%). Excluding currency translation headwinds, especially from the Chinese renminbi and the US dollar, revenues posted year-on-year growth of +1.5%. Higher sales volumes and more favourable product mix effects from the upper price segment and BEV bolstered segment revenues, underscoring the robust operating performance of the core business. Prices across the product range are expected in 2024 to be in line with last year’s level.

The Ea rnings before financial result (EBIT) totalled € 2,710 million for the first quarter (2023: € 3,777 million/-28.2%). The auto EBIT margin came in at 8.8% (2023: 12.1%) and was thus within the full-year target range of 8-10%. EBIT was impacted by higher manufacturing costs. As mentioned before, Q1 2023 had still benefited from the lower level of purchasing prices in 2022. Manufacturing costs increased starting with the second quarter of 2023 and has carried through into Q1/2024.

Changes in commodity prices accounted for a positive low three-digit million euro impact in EBIT, while currency effects remained neutral. For the full year 2024, the BMW Group anticipates a positive net balance from currency and commodity positions.

Resale results from end-of-lease vehicles proved to be a headwind against Q1/2023 yet remained positive. Starting with the second quarter of 2023, the competitive environment has intensified due to a better availability of vehicles. This has led to a gradual softening of the global price environment in the new and used car business which has continued into the first quarter of 2024.

For the full year 2024, the company expects net impact of volume, product mix and price to be slightly positive against the previous year, as communicated.Additional momentum should come from the new 5 series and the better availability of the 7 series models within the first full year leading to a stronger product mix.

EBIT of auto segment was also impacted by higher selling & administrative costs,

largely due to IT projects and the increase in personnel costs, which was implemented from the third quarter of 2023.

In line with its strategic plans, the BMW Group is investing more in its future this year than ever before. It plans to see record levels of R&D expenses and capital expenditure: The BMW Group is consistently focusing on innovations, efficient and low-emission technologies, as well as the further electrification and digitalisation of the product range and the company.

Based on the strength of its current operating performance, the BMW Group incurred R&D expenses of € 1,974 millio n (2023: € 1,554 million/+ 27.0%) in the first quarter, which were significantly higher than the previous year. Spending was mainly focused on further electrification and digitalisation of the vehicle fleet, as well as continued development of automated driving functions. Development expenditure was also directed towards upcoming models of the NEUE KLASSE as well as successor models such as the BMW X5.

The R&D ratio (according to the German Commercial Code) increased to 5.4% (2023: 4.2%). For the full-year, the BMW Group expects a ratio of over 5.0%.

In the first quarter of the year, free cash flow of automotive segment was affected by the increase in working capital due to higher inventory levels to ensure appropriate supply to sales markets with lead times acceptable to customers.

Capital expenditure of € 1,323 million (excluding captialized development costs)was allocated to facilities including facilities for vehicle projects, with a focus on electrification and digitalisation (2023: € 1,328 million/-0.37%). The capex ratio stood at 3.6% (2023: 3.6%). The company expects the ratio for the full year to be over 6%.

In Q1 2024, total investments of €2.3bn were made into future models and innovations. Nevertheless, segment Automotive generated € 1,283 million (2023: € 1,981 million/-35.2%) in free cash flow. 

For the full year, the BMW Group is targeting a free cash flow in the Automotive Segment above € 6 billion, despite peak investments in R&D and CAPEX in 2024.

“A long-term strategic approach, coupled with maximum flexibility in our day-to-day business and a clear focus on profitability – that is what defines the BMW Group's strong operating performance. With this strength, we are in a good position for our company's far-reaching transition with a diverse range of electrified and digitalized products. This year, it will be more important than ever to maintain our strategic course. The investments needed in the digital and electric future of our company are the highest they have ever been,” said Walter Mertl, member of the Board of Management responsible for Finance. “We are confident about the future – because we are building on our highly attractive products and brands and on our financial strength.”

Financial services see strong growth in new business

The financing and leasing business of BMW Group Financial Services continued to experience dynamic development in the first quarter of 2024. New retail business with end customers saw strong growth: The number of new contracts climbed by 21.5% to reach a total of 422,056 (2023: 347,298 contracts).

The corresponding total volume of new business from financing and leasing contracts with retail customers was € 15,620 million (2023: € 12,788 million/+22.1%). The percentage of BMW Group new vehicles leased or financed by the Financial Services Segment reached 41.8% at the end of the first quarter (2023: 36.5%/+5.3 percentage points).

In the three-month period, the segment reported pre-tax earnings of € 730 m illion(2023: € 945 million/-22.8%). Higher risk provisioning and lower income from the resale of end-of-lease vehicles had a dampening effect on earnings against the previous year. As anticipated, prices in the used car markets continued to decline. During the reporting period, the credit loss ratio remained at the low rate of 0.21% across the entire loan portfolio (2023: 0.13%). BMW Group Financial Services has made adequate risk provisions.

BMW motorcycles with strong season start

In the first quarter, BMW Motorrad delivered 46,434 motorcycles and scooters to customers. Overall, BMW Motorrad expects demand for its young product line-up to remain robust this year. The new models, especially the F 800 GS, the F 900 GS and the R 1300 GS, are enjoying strong demand since their market launch, further bolstering the segment's growth strategy. The EBIT margin of 12.2%(2023: 16.5%) exceeded the guided full-year target range of 8-10%.

BMW Group confirms guidance

Forecasts predict a slight increase of 3.2% in global economic growth for 2024. If the current economic recovery in many markets continues, growth could potentially be stronger. However, escalation of existing conflicts, with a possible increase in geopolitical tensions, could have a negative impact.

The BMW Group expects to participate in this growth, leveraging its balanced positioning across the world’s major regions.

Given the continuing demand for its attractive premium vehicles, the BMW Group confirms its guidance for the year. The company expects to see slight growth in customer deliveries worldwide in 2024.

Group earnings before tax are forecast to decrease slightly, due to higher manufacturing and fixed costs, particularly personnel costs and R&D expenses, compared to the previous year. The projected decrease in used car prices is also anticipated to contribute to this development.

The BMW Group expects an EBIT margin in the Automotive Segment of between 8-10% for the full year.

For the Motorcycles Segment, a slight increase in deliveries is forecast and an EBIT margin within the target range of 8-10%.

Return on equity (RoE) in the Financial Services Segment is projected to be between 14 and 17%.

These targets will be achieved with slightly higher employee numbers.

This guidance assumes that geopolitical and macroeconomic conditions will not deteriorate substantially. Given the many uncertainties surrounding the existing risks and opportunities, the BMW Group’s actual business performance may deviate from current expectations.