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New Delhi:
The unabated electrification of the BMW Group’s product portfolio remains a key success factor for sales growth.Bayerische Motoren Werke AG, commonly referred to as BMW on Thursday reported sales of BMW and MINI brand all-electric models that grew by 110.3 % to 75,890 units in the H1 2022 and therefore, more than doubling compared to the same period one year earlier (2021: 36,087 units).
Sales of BEV and PHEV models increased to 184,468 units, significantly up on the previous year (2021: 153,243 units; + 20.4 %). The proportion of electrified vehicles in total deliveries during the six-month period, therefore, climbed to 15.9 % (2021: 11.4 %; + 39.5 %).
However, the total deliveries of BMW, MINI and Rolls-Royce brand vehicles from April to June 2022 decreased to 563,187 units, well down on the previous year’s record second-quarter figure (2021: 702,441 units; – 19.8%).
During the first six months of the year, the BMW Group delivered a total of 1,160,094 units to customers (2021: 1,339,047 units; – 13.4%). Despite these developments, the BMW Group maintained its leading position in the premium segment within the six-month period under report.
On February 11, 2022, via its subsidiary BMW Holding B.V., the BMW Group acquired a further 25 % of the shares in the BMW Brilliance joint venture, thereby increasing its shareholding from 50 % to 75 %.
Following this, Group revenues recorded between January and June rose significantly year on year to EUR 65,912 million (2021: EUR 55,360 million; + 19.1%, second quarter 2022: EUR 34,770 million, 2021: EUR 28,582 million; + 21.6 %), primarily due to the impact of the first-time consolidation of BMW Brilliance, as described above.
Premium segment
Worldwide demand for BMW, MINI and Rolls-Royce brand vehicles remained strong during the first half of 2022. At the same time, however, operations continued to be hampered by vehicle component shortages and the impact of pandemic-related lockdowns in China. Despite these adverse circumstances, however, the BMW Group maintained its leading position in the global premium segment.
In total, 1,160,094 BMW Group vehicles were delivered to customers during the six-month period under report, down by 13.4 % compared to the previous year’s record level of 1,339,047 units, comprising 1,016,228 BMW (2021: 1,178,210 units; – 13.7%), 140,675 MINI (2021: 157,848 units; – 10.9 %) and 3,191 Rolls-Royce brand vehicles (2021: 2,989 units; + 6.8 %).
In the second quarter, the BMW Group delivered a total of 563,187 vehicles (2021: 702,441 units; – 19.8 %), of which the BMW brand accounted for 496,432 ¹ units (2021: 617,667 ¹ units; – 19.6%) and the MINI brand for 65,188 units (2021: 83,165 units; – 21.6 %). Second quarter deliveries of the ultra-luxury Rolls-Royce brand totaled 1,567 units, only marginally down on the previous year’s corresponding figure (2021: 1,609 units; – 2.6 %).
BMW Brand
Second-quarter deliveries of BMW brand vehicles decreased to 496,432 units (2021: 617,667 units; – 19.6 %). The cumulative figure for the six-month period also fell short of the previous year’s record level (2022: 1,016,228 units, 2021: 1,178,210 units; – 13.7%).
Within the top range segment, on the other hand, half-year deliveries of the BMW X7 were up by 3.5 % compared to one year earlier. Significant increases were recorded by the BMW brand’s all-electric models, with growth in the first half of the year above 150 %, driven in particular by the new innovative BMW iX launched in 2021.
MINI Brand
MINI brand deliveries fell to 65,188 units in the second quarter of 2022 (2021: 83,165 units; – 21.6 %) and 140,675 units for the six-month period (2021: 157,848 units; – 10.9 %). MINI also recorded growth in business with electrified models, driven in particular by the all-electric MINI Cooper SE, deliveries of which increased by 37.0 % to 18,428 units in the six-month period under report (2021: 13,454 units).
In total, electrified vehicles accounted for more than 18 % of global deliveries of the MINI brand in the first six months of the financial year 2022.
Rolls-Royce
Rolls-Royce Motor Cars can look back on a highly successful six-month performance. After a strong start to the year, deliveries of the ultra luxury marque fell to 1,567 units in the second quarter, only slightly down on the previous year’s high figure (2021: 1,609 units; – 2.6 %).
Overall, deliveries during the first half of the year increased by a solid 6.8% to 3,191 units (2021: 2,989 units), driven in particular by the Rolls-Royce Cullinan ² as well as the Phantom and Ghost models.
Outlook
The BMW Group’s performance in H1 2022 was negatively impacted by the war in Ukraine and on-going supply bottlenecks for semiconductor components. Moreover, the pandemic-related lockdowns in China led to disruptions at local production facilities and restrictions on global logistics and supply chains, thereby slowing the pace of economic growth in China. This mixture of adverse factors caused delivery figures to decline.
In the first quarter, the BMW Group had assumed that the supply situation for semiconductor components would ease during the second half of 2022.
In the meantime, it is no longer expected to improve appreciably over the remainder of the year. Owing to the negative impact on production, the BMW Group now anticipates a slight year-on-year decline in Automotive segment deliveries over the full twelve-month period.
The BMW Group also expects higher expenses for raw materials and energy prices in the second half of the year, particularly due to reduced gas supplies, with a corresponding negative impact on earnings in the form of further rising costs of material and manufacturing.
High inflation and rising interest rates worldwide are making conditions for consumers less favorable and are likely to influence consumer spending behavior in the coming months. As a consequence, the currently above-average order backlog – particularly in Europe – is expected to normalize.
According to the Group, the automotive segment’s EBIT margin is still predicted to come in within a range between 7 and 9%. The expected drop in delivery figures is likely to be partially offset by positive pricing effects and the continued favorable situation in pre-owned vehicle markets.
RoCE for the automotive segment is still forecast to finish within a range between 14 and 19 %.
Motorcycles segment deliveries are expected to increase slightly. The segment EBIT margin is predicted to finish within a range between 8 and 10 % and the segment RoCE within a range of 19 and 24 %.
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