In the car market that rethinks at electrical speed, BMW renewed its support for its EV strategy while releasing Group 2024 report. However, with a significant decrease in revenue compared to 2023 – it is clear that last year was difficult.
BMW Group 2024 profits before the tax amounted to 10.971 billion euros, by 35.8 % over the past 2023. This was driven by a decrease in auto revenues from 5.6 % to 124.917 billion euros. The removal operations (transactions between subsidiary companies) increased 49.9 % to 24.333 billion euros.
Although BMW sales of electric cars were flying in Europe, and even exceeded Tesla in July 2024, shipments were not going well in China. The company’s shared sales between BMW and mini cars in China decreased by 13.4 % to 714,500 units, despite the increase in the total Chinese market for passenger cars by 23.1 %. This is due to a more solid competition from local Chinese local brands.
In general, BMW Group has seen a 4 % decrease in car delivery operations, as the largest decrease in its 17 % mini-brand decreased, while Rolls-Royce shipments decreased by 5 % and BMW by 2 %. The company stated that it expects more negative effects in 2025 to implement the increasing definitions. Those who have been imposed so far in their expectations were listed from 5 to 7 % profit in 2025.
Despite the difficult expectations in 2024 and 2025, BMW OLIVER Zipse was optimistic about the group’s future in his 2024 report. Many of this revolves around the company’s Neue Klasse strategy, a radical rethinking brand designs, platforms, and the leadership group focus on sustainability, which is the main axis of BMW. The name returns to BMW Neue Klasse from the 1960sThat revived the company’s wealth.
Most car manufacturers agree that the battery electric cars (Bevs) are the future. However, the pace of change has become a question in the midst of economic difficulties in the past few years. BMW has moved in these challenges more effectively than some car manufacturers. While the company now has Bev offers through most of its scope, it has continued to produce most of these platforms on common platforms with internal combustion vehicles, allowing easier matching between supply and demand.
Neue Klasse re -focus mainly on Bevs, but BMW still does not lay all its eggs in the electric basket. The company plans to develop internal and hybrid motor vehicles for some markets, depending on customer demand. BMW keeps its options open and is still preparing for a hydrogen fuel cell vehicle in 2028. The company was Hydrogen -running road test from the X5 SUV since 2023.
BMW is committed to Neue Klasse in 2020 during the epidemic, which is a bold step for such unspecified times. It definitely puts money in the strategy. In 2024, BMW invested 9 billion euros in research and development and 11.8 billion euros of capital spending. Not all of this has gone to electricity, where some people go to develop the digital transformation and production facility.
The first Neue Klasse will arrive this year, in the same category as the famous X5 and IX SUVs (called BMW Sports Activity Vehicles). Initially, this will be built into a modern plant in Dipreen, Hungary. SAV will quickly follow a sedan in the BMW 3-Series sector, which was built in Munich, then four other new models within two years of the beginning of production. Neue Klasse cars will also be manufactured in China, China, and a completely new factory in San Luis Potosi from 2027.
Although 2024 was a difficult year for BMW, and the beginning of the turbulent tariff to 2025 has sent shocks through car supply chains, the company is still looking forward to a positive future with Bevs Neue Klasse has an increasingly important role.
This story was originally shown on Fortune.com
