Fully-electric vehicle sales soar over 32%, powering profitability across key segments
The BMW Group kicked off 2025 with a robust financial performance, staying firmly on course with its strategic goals despite a challenging global backdrop. In the first quarter, the automaker recorded over €3.1 billion in pre-tax earnings and an EBT margin of 9.2%, reinforcing its standing as a leader in premium mobility.
A notable highlight of the quarter was the continued surge in demand for fully-electric vehicles (BEVs), with deliveries jumping 32.4% year-over-year. Electrified vehicles—both BEVs and plug-in hybrids—accounted for over a quarter of total deliveries (26.9%), underlining the effectiveness of BMW’s “technology-open” approach, which emphasizes flexible powertrain solutions tailored to regional markets.
Chairman Oliver Zipse reiterated the importance of this strategy: “Our diversified drivetrain portfolio and cutting-edge models give us the agility needed to succeed in volatile conditions. The NEUE KLASSE platform will further accelerate innovation, combining next-gen electric performance with digital integration.”
Solid Global Sales Despite Regional Variances
The BMW Group delivered 586,117 vehicles globally in Q1, a slight 1.4% dip from the previous year. European (+6.2%) and U.S. (+4.0%) markets posted gains, while sales in China softened due to competitive pressures.
The BMW brand alone accounted for over 520,000 vehicles, with strong contributions from the latest 5 Series (+35.8%) and X1/X2 (+31.8%) models. The high-performance M division saw 5% growth, driven by continued demand for M3, M5, and their Touring counterparts.
MINI posted a 4.1% rise in global sales, totaling 64,615 units, while Rolls-Royce delivered 1,381 vehicles in Q1, a 9.4% decline. BEV sales from all three brands combined reached 109,513 units, marking a 32.4% annual increase.
Electrification Milestones and Strategic Investments
BMW continues to expand its electric footprint, offering at least one electrified model in every vehicle class. Q1 saw total electrified deliveries rise 28.5% to 157,487 vehicles. With cumulative BEV sales nearing 1.5 million units since the i3’s debut in 2013, the group is on track to cross the 3 million mark for total electrified vehicles.
To sustain this momentum, BMW invested €1.98 billion in R&D during the quarter, with a focus on the NEUE KLASSE lineup, including future successors to the BMW X5 and X7, and the fully-electric BMW iX3.
Automotive EBIT Margin Hits Top End of Target Range
The Automotive Segment posted €2.02 billion in EBIT, with a 6.9% margin—at the upper end of its 5–7% annual target. Segment revenues came in at €29.2 billion, impacted slightly by reduced volumes in China and new anti-subsidy tariffs on China-made EVs.
Free cash flow for the segment fell to €413 million due to lower pre-tax earnings and higher capital expenditures, though full-year guidance remains unchanged at over €5 billion.
Financial Services and Motorcycles Stay Resilient
BMW’s Financial Services division maintained a strong leasing business, with new leasing contracts up 12.7% and new business volume rising to €15.99 billion. However, lower end-of-lease resale values led to an 11% drop in segment profit.
BMW Motorrad delivered 44,609 units in Q1, down 3.9%, yet achieved a solid EBIT margin of 9.4%, surpassing its annual target range.
Outlook for 2025: Confident Despite Uncertainty
BMW reaffirmed its full-year targets, anticipating slight overall growth in vehicle sales and a stronger share of BEV deliveries. The Group expects the Automotive EBIT margin to remain within the 5–7% range and a return on capital employed (RoCE) between 9–13%.
The Financial Services segment is forecast to achieve a return on equity (RoE) of 13–16%, while the Motorcycles division aims for an EBIT margin of 5.5–7.5%.
“Stable performance, strategic flexibility, and disciplined cost management are our pillars for long-term success,” said CFO Walter Mertl. “We are leveraging AI and digital tools to boost efficiency, even as we navigate complex geopolitical and economic landscapes.”
While acknowledging potential risks from trade tensions and inflationary pressures, BMW remains optimistic. The company continues to invest in innovation, electrification, and digitalization to secure its position as a frontrunner in the evolving automotive industry.
Source and more info : BMW