Bayerische Motoren Werke AG (ETR: BMW) achieved strong results by the end of FY17, driven by an increase in deliveries and production in most of its brands. The company sold 4.1 percent more units, up to 2.46 million in FY17 from 2.37 million in FY16 and produced 6.2 percent more in FY17, with a total of 2.51 million compared to 2.36 million for the same period in 2016. This led to a total FY17 revenue of €98.7 billion (US$121.2 billion) compared to €94.2 billion (US$115.5 billion) in FY16.
Both BMW and MINI increased their sales numbers (by 4.2 and 3.2 percent, respectively) in FY17 to a total of 2.09 million and 371,881 units, helping BMW reach global leadership in the premium segment. BMW Group also strengthened its electrified vehicle strategy, reaching the 100,000-unit milestone with the sale of a BMW i3 in Munich. In total, the group sold 103,080 electrified vehicles by the end of the year and maintains electric mobility as one of its core strategies. Only Rolls-Royce presented a decrease in sales of 16.2 percent with a total of 3,362 units by the end of the year, compared to 4,011 in 2016, which BMW attributes to political uncertainty in the Middle East and a negative market environment in the US.
China was the most important market for BMW Group in FY17 with 24.2 percent of the company’s total sales and a 15.1 percent increase in units sold to 595,020 from 516,785 units. The Asian market was an attractive destination for BMW units, totaling 848,826 vehicles sold and a 13.6 percent increase compared to 747,291 vehicles in FY16. Uncertainty regarding Brexit and a general debate on diesel use in Germany and the UK led to marginal growth for the company in Europe of 0.9 percent. Meanwhile, the Group faced a complicated market environment in the Americas that resulted in a 2 percent decrease in sales. This trend, however, shifted in 4Q17 with a 1.6 percent increase in overall sales, reaching a total of 98,137 units in that period.
Overall, BMW Group delivered on its projections for 2017 reaching an increase in profit before tax of 10.2 percent for a total of €10.6 billion (US$13 billion) compared to €9.7 billion (US$11.9 billion) in 2016 and a slight increase in revenue in the automotive segment of 2.5 percent for a total of €88.6 billion (US$108.6 billion) compared to €86.4 billion (US$106 billion) in 2016. For FY18, the Group expects profit before tax similar to FY18, a slight increase in deliveries and a slight increase in revenue as well.
The company is currently amid the implementation of the NUMBER ONE > NEXT strategy and Harald Krüger, Chairman of the Board of Management at BMW Group expects the company’s momentum to continue in FY18. “In 2018, we will enter the second year of the biggest model offensive in our history. We will continue moving forward, with highly emotional new models like the BMWi8 Roadster and the BMW Z4,” he says. “Electrification will remain a top priority for us over the coming years. We aim to sell more than 140,000 electrified vehicles in 2018 and have half a million electrified BMWs and MINIs on the roads by the end of 2019.”
The data used in this article was sourced from BMW Group. If you want to learn more about BMW’s and other brands’ performance in Mexico, check out our feature analysis in Mexico Automotive Review 2017.