BMW, despite the prevailing economic challenges, continues to experience robust demand for their premium vehicles. In an interview, Chief Financial Officer Walter Mertl stated that the company anticipates maintaining a positive order backlog through the remainder of the year.
While European orders in the first quarter saw a slight decline compared to the previous year, there has been a significant rebound since April, with double-digit growth persisting throughout June, July, and August. This trend has led to a healthy order backlog for the group, with the current level slightly surpassing figures from 2022.
Mertl reassured stakeholders by asserting that this order backlog will comfortably sustain BMW until the end of 2023. The company is particularly benefiting from the surge in demand for electric vehicles (EVs). The upcoming generation of BMW cars is expected to enhance the profitability of their EV business from 2025 onwards.
Mertl highlighted the introduction of the “Neue Klasse” as a pivotal factor in achieving margin parity between electric and combustion-engine vehicles. According to him, the convergence in margins will depend on various factors, including the successful ramping-up of new electric vehicle models. Ultimately, it will be the customers who determine the pace at which this parity is reached.
Although electric cars presently tend to have higher price tags due to battery costs, BMW is actively working towards narrowing this price gap. By striving to improve efficiency and reduce manufacturing expenses, the company aims to make electric vehicles more accessible to all consumers.
