BMW Boosts Electric Car Spending To Rival Tesla

Local manufacturers such as BYD are increasingly dominating EV sales in China, the most important market for Volkswagen, BMW, and Mercedes-Benz.

BMW also raised its 2023 car sales forecast to reflect solid gains, with the new 5-Series sedan and its electric sibling expected to help boost volumes in the second half of the year.

While demand for its luxury vehicles remains strong, BMW warned on Tuesday that rising parts costs are reducing its cash flow, citing logistics as a constraint. The company will incur higher costs due to increased inventories in order to meet customer demand.

Several automakers are facing new logistics challenges as a semiconductor shortage subsides, allowing them to produce more vehicles.

Volkswagen cut its delivery forecast last week due to a shortage of trains and truck drivers, which left finished vehicles stranded at factories. Following difficulties in obtaining certain components, Porsche was forced to limit sales of its electric Taycan.

In the second quarter of last year, BMW group earnings before interest and tax increased by 28% to 4.34 billion euros. Returns on automobiles increased to 9.2 percent.