BMW profits soar as high car prices outweigh supply chain woes

Published Mar 10, 2023

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Munich - BMW reported a sharp increase in annual profits for 2022, as higher prices for luxury models helped make up for a drop in deliveries due to lingering supply chain disruptions.

The Munich-based group said it booked a net profit of 18.6 billion euros (R364 billion) last year, a 49-percent jump on 2021. Group revenues rose by 28 percent, beating analyst expectations.

BMW said the "solid" figures were thanks to "improved pricing" on higher-end vehicles as well as the full consolidation of the Chinese joint venture BBA, which made "a significant contribution".

The group delivered just under 2.4 million vehicles in 2022, a 4.8-percent fall on the year before despite "consistently high customer demand".

But ongoing supply chain woes, a global semiconductor shortage and Covid-related lockdowns in China meant that the group struggled to fulfill all its orders.

BMW's fully electric vehicles in particular were in high demand, with sales more than doubling year-on-year to 215 752 units. BMW’s EV range currently includes the iX1, iX3, i4, i7 and iX.

"We continue to hold a strong position in the major regions of the world with a strong product lineup, and we will keep on benefitting in particular this year from demand for our electrified vehicles and top-end models," said BMW's chief financial officer Nicolas Peter.

BMW will unveil its full 2022 results and its outlook for 2023 on March 15.

Agence France-Presse