In a automotive market which rethinks the speed of electrification, BMW renewed its support for its EV strategy when it is published by its Full group report 2024. However, with a significant drop in income compared to 2023, the last year has been clearly difficult.
The profits in 2024 of the BMW group before tax were 10.971 billion euros, a drop of 35.8% compared to 2023. This was fired by a drop in car income from 5.6% to 124.917 billion euros. Eliminations (transactions between subsidiaries) also increased by 49.9% to 24.333 billion euros.
Although sales of electric vehicles by BMW stolen in Europe and even exceeded Tesla in July 2024, shipments did not behave as well in China. Combined sales of BMW and Mini in China by the company in China dropped from 13.4% to 714,500 units, despite the overall Chinese market for passenger cars increasing by 23.1%. This has been awarded to much more rigid competition from national national Chinese brands.
Overall, the BMW group experienced a 4% drop in car deliveries, with the largest decrease in its mini brand by 17%, while Rolls-Royce shipments fell by 5% and the BMW drop by 2%. The company said it expected new negative impacts in 2025 from the growing price implementation. Persons taken so far have been included in its forecasting of a profit margin of 5 to 7% in 2025.
Despite the difficult prospects in 2024 and 2025, the president of BMW, Oliver Zipse, was optimistic about the future of the group in its presentation of the 2024 report. Much of this revolves around the company’s neu Klasse strategy, a radical rethination of conceptions, platforms and the development of the transmission of the brand revolving durability, a key objective for BMW. The name dates back to BMW Neue Klasse from the 1960swhich has relaunched the fortune of the company.
Most car manufacturers are suitable that electric battery vehicles (BEV) are the future. However, the pace of change is questioned in the midst of economic difficulties in recent years. BMW tackled these challenges more effectively than certain car manufacturers. Although the company now has BEV offers on most of its range, it has continued to produce most of these on the platforms shared with vehicles powered by internal combustion, allowing easier correspondence between supply and demand.
Neue Klasse was mainly recovering BEVs, but BMW still does not put all its eggs in the electric basket. The company plans to develop vehicles and internal combustion engine hybrids for certain markets, depending on customer demand. BMW keeps its options open and still promises a hydrogen fuel cell vehicle in 2028. The company was Road test A hydrogen version of its X5 SUV since 2023.
BMW engaged in the Neue Klasse in 2020 during the pandemic, a daring decision for such uncertain moments. It certainly puts money in the strategy. In 2024, BMW invested 9 billion euros in research and development and 11.8 billion euros in capital expenses. All this has not been put in electrification, some entering the digital transformation and the development of production facilities.
The first Neue Klasse car will arrive this year, in the same category as popular VAT X5 and IX (which BMW calls sports activity). Initially, this will be built in a modernized plant in Debrecen, in Hungary. The after-sales service will be followed quickly by a sedan in the BMW 3-series segment, built in Munich, then four other new models in the two years following the start of production. Neue Klasse cars will also be made in Shenyang, China, and a whole new factory in San Luis Potosí from 2027.
Although 2024 was a difficult year for BMW, and the start of the turbulent price led until 2025 sent shocks through automotive supply chains, the company is still turning to a positive future with its Neue Klasse Bevs playing an increasingly important role.
This story was initially presented on Fortune.com
