Slower demand amid higher interest rates
Because of the sales of its most costly vehicles and the counterbalancing effect of reduced pricing for entry-level luxury models, BMW AG anticipates 2023 profit margins to be broadly in line with last year.
The profit margin will remain in the range of 8% to 10%.
While deliveries are anticipated to rise somewhat after declining 4.8% last year, auto production is expected to continue at 8–10% this year, in line with long-term plans.
BMW and other luxury manufacturers have survived the economic downturn because there is still a strong demand for the most expensive vehicles, but rising energy costs, increased interest rates, and unpredictable customer confidence are making automakers more apprehensive.
According to the manufacturer, all-electric cars will make up 50% of sales by 2030 and at least 20% of all sales by 2024.