BMW Continues to Bet on Electric Vehicles for Growth in 2024

By Editor


The BMW Group, following a stellar performance in 2023 with record-breaking operating results in its Automotive Segment, is set to maintain its profitable trajectory in the current financial year.

The automobile giant said electric vehicles (BEVs) and upper premium segment models are expected to be the primary growth drivers, including the BMW 7 Series, BMW X7, and the Rolls-Royce lineup featuring the fully-electric Rolls-Royce Spectre.

The special focus of BMW Group in the EV business comes at a time when Ford Motor posted about 11 percent drop in January sales of electric vehicles (EV), as the industry grapples with shrinking demand.

Anticipating significant double-digit growth in both segments, the BMW Group foresees contributions from models like the BMW 5 Series, which will introduce the fully-electric Touring variant, and offerings from BMW M GmbH. Overall, a slight increase in deliveries within the Automotive Segment is projected for 2024.

Oliver Zipse, Chairman of BMW AG, emphasized the importance of maintaining a robust strategy amidst challenging conditions, citing strong products and responsiveness as key success factors for the year ahead.

In line with its strategic vision, BMW Group plans substantial investments in its production facilities, premium vehicle lineup, and innovative technologies. This includes the construction of new plants in Debrecen (Hungary) and the establishment of high-voltage battery assembly facilities across various global locations. Notably, capital expenditure is expected to peak in 2024, driven by expansions at existing plants and the electrification of production processes.

Furthermore, research and development spending will reach new heights, focusing on electrification across the vehicle portfolio and advancements in in-car digital innovations such as connectivity and automated driving systems.

Walter Mertl, member of the Board of Management responsible for Finance, said: “Capital expenditure and R&D spending will reach new levels. We are expecting a Capex ratio above 6 percent and an R&D ratio above 5 percent.”

Walter Mertl highlighted the company’s commitment to cost discipline and sustainable profitability, aiming for an Automotive EBIT margin of 8-10 percent for the current financial year.

In 2023, the BMW Group solidified its position as an e-mobility pioneer, witnessing a remarkable increase in sales of fully-electric vehicles, surpassing 375,000 units. The company’s fleet-wide CO2 emissions in Europe were notably reduced, exceeding regulatory targets by over 20 percent.

The BMW Group’s strong performance in the electric vehicle sector continued into 2024, with significant double-digit growth in sales recorded in the first two months of the year. Notably, the United States saw a near doubling of BEV sales, while Europe and China also experienced substantial increases.

While fully-electric vehicles dominate headlines, plug-in hybrid technology remains integral to BMW’s electrification strategy, contributing to CO2 reduction efforts and customer adoption of e-mobility. Over 560,000 electrified units were delivered to customers in 2023, representing 22 percent of total BMW Group sales.

Looking ahead, the BMW Group envisions a future dominated by electric vehicles, with the MINI and Rolls-Royce brands transitioning towards a fully-electric lineup by the early 2030s. The company anticipates maintaining its growth trajectory, with the potential for over 50 percent of all BMW Group vehicles to have fully-electric drivetrains by 2030, contingent upon market conditions and infrastructure developments.

Baburajan Kizhakedath

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