BMW Group reported a pre-tax profit of €4,162 million in the first quarter of 2024, representing a significant decline of 18.9% compared to the same period last year.
Overall sales experienced a modest 1.1% increase, reaching more than 594 thousand vehicles, as demand expanded across electric cars, which comprised 13.9% of deliveries, representing a notable 26.4% rise as compared to the same period last year.
According to the German automaker, the decline was primarily attributed to increased production costs and fixed costs, as well as intensifying competition.
Sales grew in many countries, except for Japan and South Korea, where it witnessed a sharp decline. In China, substantial growth was primarily driven by vehicles priced at €40 thousand or less.
Two weeks ago BMW announced an investment of another 20 billion yuan (€2.57 billion) in its Shenyang production base in China.
Last year, BMW spent €7.5 billion on electric vehicles and model updates and the car maker is set to increase this investment in 2024.
"This year, it will be more important than ever to maintain our strategic course," Chief Financial Officer Walter Mertl said in a statement. "The investments needed in the digital and electric future of our company are the highest they have ever been."
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