In the automotive market that reviews the speed of electrification, BMW has renewed its support for its EV strategy during its publication Full Report for Group 2024. However, with a significant decline in revenue compared to 2023 – last year it was clear.
The profit of the BMW Group in 2024 before the tax was 10,971 billion euros, which declined by 35.8% during 2023. This was driven by a drop in car revenue from 5.6% to 124,917 billion euros. Eliminations (transactions between subsidiaries) also increased by 49.9% to 24,333 billion euros.
Although BMW’s electric vehicle sales were flying to Europe and even overtaking Tesla in July 2024Shipments have not diminished so well in China. The combined sales of BMW and mini cars in China fell 13.4% to 714,500 units, despite the overall Chinese passenger car market increased by 23.1%. This is attributed to much stronger competition from domestic domestic brands.
Overall, the BMW Group dropped to 4%in car deliveries, with its mini-brand drop by 17%, while Rolls-Royce shipments declined by 5%and BMW dropped by 2%. The company said it expects additional negative impacts in 2025 of growth Implementation of tariffs. Those announced so far are included in his forecast for a margin of earning 5 to 7% in 2025.
Despite the challenging perspectives of 2024 and 2025, BMW President Oliver Zips was optimistic about the group’s future in his presentation of the 2024 report. Much of this revolves around the company’s Neue Klasse Strategy, a radical re -examination of designs, platforms and focus on the rotation around sustainability, and A key focus for BMW. The name is turning back to BMW New Class of the 1960sthat revived the company’s happiness.
Most car manufacturers agree that electric battery vehicles (BEV) are the future. However, the pace of change has been questioned in conditions of economic difficulties in recent years. BMW has navigated these challenges more effectively than some car manufacturers. While the company now has Bev offers in most of its range, it has continued to produce most of these platforms shared with internal combustion vehicles, providing an easier match between supply and demand.
Neue Klasse is being reconstructed primarily on BEV, but BMW still does not put all its eggs in the electric basket. The company plans to develop internal combustion vehicles and hybrids for some markets, depending on customer demand. BMW maintains its options open and still promises a hydrogen fuel vehicle in 2028. The company is Testing Roads with Hydrogen Version of its X5 SUV since 2023.
BMW devoted itself to Neue Klasse in 2020 during the pandemic, a bold move for such uncertain times. It certainly puts money in the strategy. In 2024, BMW invested 9 billion euros in research and development and 11.8 billion euros of capital costs. Not all this has gone into electrification, with some entering the development of digital transformation and capacity production.
The first Neue Klasse car will arrive this year, in the same category as the popular X5 and IX SUVs (which BMW calls vehicles for sports activity). Initially, this will be built in a modernized plant in Debrecen, Hungary. Sav will be followed quickly from a sedan in the BMW 3-series segment, built in Munich, and then four new models within two years of production. Cars Neue Klasse will also be produced in Shenyang, China and A. A brand new plant in San Lewis Potosi Since 2027.
Although 2024 was a challenging year for BMW, and the turbulent start -led tariff by 2025 sent shocks through car chains, the company is still looking at a positive future with its neue Klasse Bevs taking an increasing role.
This story was originally shown on Fortune.com
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