FRANKFURT - German luxury carmaker BMW said on March 14 that it had met its 2023 targets after pre-tax profits were boosted by improved sales, with electric vehicles “a key growth driver”.

The group said it delivered more than 2.5 million cars in 2023, 6.4 per cent more than a year ago.

Group revenues rose by 9 per cent to €155.5 billion (S$226.4 billion).

The BMW group, which also includes the Rolls-Royce and Mini brands, “achieved its business objectives” for 2023 “despite strong competition and volatile conditions”, the company said in a statement. Earnings before interest and tax soared by 32 per cent to €18.5 billion.

Net profit, however, plunged by more than 34 per cent to just over €12 billion due to a one-off accounting effect linked to the full consolidation of BMW’s Chinese joint venture BMW Brilliance Automotive.

Without that one-time impact, net profit “would have been higher year on year”, BMW said.

Deliveries of fully electric cars jumped by 74 per cent to more than 375,000, accounting for around 15 per cent of total sales, as the industry-wide shift towards lower-emissions vehicles gathers pace and competition hots up.

While the company said it had seen “high demand for its products” overall, its “range of fully electric vehicles was a key growth driver” in 2023.

BMW said it planned to pay shareholders a dividend of €6 per share, down from €8.50 in 2023 but slightly more than analysts had expected.

The group will unveil its detailed full-year results on March 21.

“We posted strong growth and substantially increased our percentage of fully electric vehicles, while improving our operational profitability,” said chief executive Oliver Zipse.

“We are advancing with our course – offering our customers the newest innovations and the latest technology, regardless of the vehicle’s powertrain,” he added. AFP