BMW Promises Stable Prices, Raises 2023's Margin Forecast

BMW forecasted an 8% to 10% margin for its autos segment in 2023, up from 7% to 9% last year, and said it planned to keep prices stable, after dealing with rising costs by passing them on to customers for years. The transition to battery-electric vehicles (BEVs) was moving faster than expected, and the company expected to reach its target of more than 50% battery-electric vehicle share well ahead of its 2030 target. It expects the rate of growth in BEV sales, which more than doubled to over 215,000 in 2022, to slow slightly this year to a high double-digit percentage.

However, according to Wednesday's forecast, one in four new sales will be battery-electric by 2025, rising to one in three by 2026, a significant increase from the one in 11 ratio seen last year. The company, which has long been the most vocal proponent of hydrogen fuel cell technology as a viable alternative to battery-powered vehicles among German automakers, stated that a hydrogen-powered vehicle could enter production by the middle of the decade. The BMW iX5 Hydrogen* test vehicle, which has a range of 500km (310 miles) and can be refuelled in three to four minutes, is being tested in several countries, according to the company.

The automaker confirmed preliminary 2022 results, which included an 8.6% margin in the autos business on earnings before interest and tax of €10.6 billion (approx RM50.9 billion) and cash flow of €11.1 billion. Almost half of the cash flow came from a cash contribution from BMW Brilliance Automotive, a Chinese joint venture.