BMW’s financial performance in 2024 (Jan-Dec) experienced a downturn, with net profit decreasing by 36.9% to €7.678bn ($8.35bn) from the previous year’s €12.165bn, due to weak demand in the Chinese market.
The fourth quarter (Q4) of 2024 saw net profit drop by 40.9% to €1.546bn, compared to €2.614bn in the same period a year earlier.
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Full-year revenues also fell by 8.4% to €142.38bn from €155.49bn in 2023, while Q4 revenues dropped by 15.2% to €36.416bn.
BMW’s earnings before tax (EBT) for 2024 were reported at €10.971bn, a decline of 35.8% from €17.096bn in 2023.
The automotive segment’s earnings before financial result (EBIT) totalled €7.893bn in 2024, down by 39.2% from €12.981bn the previous year.
In 2024, BMW Group delivered nearly 600,000 electrified vehicles, including plug-in hybrids and battery electric vehicles (BEVs), representing almost one in four vehicles sold.
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By GlobalDataFor the financial year 2025, the group anticipates slight growth in overall sales, with the full availability of new models and a slight increase in the share of all-electric vehicles.
The company plans to continue its electrification and digitisation strategy in 2025 and expects declines in costs and investments after the 2024 peak.
However, challenges such as the situation in China, tariff increases, and supply chain support measures are expected to create headwinds, the company said.
BMW plans to strengthen its production network with a new plant in Debrecen, Hungary, along with the development of five high voltage battery assembly facilities. Its Munich plant is also set to undergo extensive refurbishment.
By 2027, BMW is planning to release more than 40 new and updated vehicles across all drivetrain variants and segments.
BMW AG Board of Management chairman Oliver Zipse said: “We are taking a huge leap forward with our new technology clusters – achieving maximum scalability, increasing the level of innovation and enhancing customer benefits.
“We do not differentiate between segments or drivetrain technologies – we provide every customer with the latest technology.”
Last month, BMW Group reportedly paused £600m ($757.9m) investment into the Mini car assembly plant in the UK due to decline in demand for electric vehicles (EVs).
