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On August 1, the BMW Group released its second-quarter earnings report. According to the report, sales in the second quarter of 2024 were 36.94 billion euros, a year-on-year decrease of 0.7%, of which the revenue of the automotive division in the second quarter was 32.07 billion euros, a year-on-year increase of 1.4%. EBIT in the second quarter was 3.88 billion euros, down 10.7 percent year-on-year. Deliveries in the second quarter were 618743 units, down 1.3% year-on-year.
BMW released its second-quarter earnings report
According to the report, BMW's EBIT margin was 8.4 percent, down from 9.2 percent in the same period last year and below the consensus estimate of 8.75 percent.
In terms of sales volume, in the first half of this year, the BMW Group delivered a total of 1213276 BMW, MINI and Rolls-Royce brand vehicles in the global market, which is roughly the same as in 2023. The BMW brand sold 1096423 vehicles in the first half of the year, up 2.3% year-on-year. Among them, nearly 180,000 BMW brand pure electric models were delivered globally (179,500 units), a year-on-year increase of 34%.
BMW Group Chairman Philip Zipzer said: "The first half of the year was challenging in the global market, but we continued to make progress in the field of electrification and achieved financial targets within the target range for 10 consecutive quarters. "In the first half of the year, the BMW Group's automotive business generated revenues of more than 63 billion euros, almost on par with the prior-year quarter.
For the full-year performance forecast, the BMW Group revealed that although the annual sales volume will increase slightly, it is expected that the group's pre-tax profit for the whole year will decline slightly due to production costs and R&D expenditures higher than in 2023.
It is worth noting that BMW China has recently begun to withdraw from the price war and "reduce volume and protect prices". Since July, it has made strategic adjustments to reduce the monthly sales target by about 15% to stabilize the market price system, reduce the burden on dealers, and alleviate their operational pressure.