Despite lingering supply chain bottlenecks disrupting the global auto industry, the BMW Group achieved record revenue in Q3 as sales and demand for its electric vehicles continue propelling the German luxury automaker forward.
BMW sees rising demand for electric vehicles
“Compelling products are the best answer to a challenging environment,” Oliver Zipse states as the automating group moves into the future of the auto industry.
BMW delivered 128,195 electric vehicles, more than double (+114.8%) from the same period last year. The automaker says it saw rising demand and growing orders for its BMW I3, IX, I4, and Mini Cooper SE.
The BMW I3, its 100% electric 3-seres sedan, recently launched in China, where EV sales continue gaining momentum despite expanding competition.
BMW reached a record revenue of € 37,176 billion (about $36.3 billion) in Q3, with higher car prices fueling growth.
To build on its success, BMW is launching its first electric seven series, the BMW I7, in November, and the I5 will follow in 2023. In addition, the BMW Group unveiled the fully electric Rolls Royce Spectre in October, also set to release next year.
Despite the success in Q3, BMW remains cautious, confirming its guidance for full-year 2022 results. The automaker expects sales of its electric models to continue building momentum, doubling again this year.
As the luxury automaker continues progressing toward its 50% EV sales share goal, BMW says it will spend heavily on R&D costs. Research and development costs rose 12% as BMW invests in new electric models, particularly its NEUE KLASSE dedicated EV platform set to arrive in 2025.
To bolster its electric vehicle presence in the US, BMW is investing $1.7 billion to expand EV and battery manufacturing operations.
With several highly anticipated electric vehicle releases coming in the next several months, BMW expects its EV sales to continue accelerating.
With the US and Europe recently announcing intentions to phase out sales of combustion vehicles, BMW is wise to introduce an electric model in every category. BMW expects its electric vehicle sales to double again this year, but 2023 is slated to be another strong year with new luxury models such as the Rolls Royce Spectre and BMW I7 arriving.
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