(Munich, Germany, Nov 6, 2019)The BMW Group has reaped a double-digit year-on-year increase of Group net profit in the third-quarter and is therefore well on its way to achieving its targets for 2019, the company announced today.

Its Group net profit in the third quarter reaches € 1,546 million (S$2,372 million), up 11.5% than the same period last year.

Also, profitability has continued to improve over the course of the nine-month period. To compensate for the high upfront expenditure on future-oriented technologies, the BMW Group is working hard on continually improving efficiency, its statement says.

BMW’s headquarter in Munich Source: BMW

Oliver Zipse, Chairman of the Board of Management of BMW AG, said: “We are looking further into the future, having recognised that far-reaching technological transformation is a great opportunity for the BMW Group.”

“The decisive transformation is taking place inside the vehicle. We are bringing technological solutions to the road that ensure the automobile continues to meet the expectations and needs of society going forward. Areas of key focus include digital connectivity and creating environmentally compatible mobility,” he added.

The BMW Group is significantly expanding its range of e-mobility products. By 2023, the company expects to have 25 electrified models on the roads – more than half of which will be all-electric.

The key to implementation is highly flexible vehicle architectures and an equally agile production system that enables a model to be manufactured as an all-electric, a plug-in hybrid or a combustion engine version to ideally meet demand in each relevant market segment.

By 2021, demand for electrified vehicles is likely to double compared to 2019. The BMW Group then expects to see a steep growth curve up to 2025, with sales of electrified vehicles growing on average by more than 30% annually.

As a pioneer in e-mobility, the BMW Group is already a leading supplier of electrified vehicles. By the end of 2021, the company aims to have more than a million all-electric or plug-in hybrids on the roads worldwide.

Besides, BMW Group says it set a new record for third-quarter deliveries with its highly attractive and rejuvenated model range.

However, in the third quarter of the previous financial year, performance had been significantly dampened by supply distortions and unexpectedly intense competition due to the changeover to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) regulations as well as higher expenditure for goodwill and warranty measures. All of these factors had contributed to a significant decline in profit before financial result in the third quarter, especially in the automotive segment.