BMW Pops 4% on Strong Profit Recovery, Presents Faster EV Shift Plan

Shares of luxury carmaker BMW soared more than 4% in today’s European trading after the company announced a profit margins guidance between 6% and 8% for 2021. In 2020, the company recorded profitability of 2.7%.

“The BMW Group has entered 2021 with ambitious targets for growth and profitability and will be putting the first forerunners of its far-reaching technology offensive on the roads in the coming months. At the same time, it has set the course for a comprehensive realignment,” the company said in the statement.

BMW has also announced it is raising stakes in the EV race as it aims to deliver 2 million vehicles by 2025. This target is a result of an ambitious plan that sees the company growing EV delivery by over 50% annually on average by 2025.

“We have a clear roadmap for making the transformation of our industry a real competitive advantage for BMW in the coming years: uncompromisingly electric, digital and circular,” said Oliver Zipse, Chairman of the Board of Management of BMW AG.

“We are intent on ensuring that the ‘greenest’ electric car on the market is made by BMW.”

The company has also introduced a “New Class” concept, which assumes the rollout of new models based on three key principles: digital, electric, and sustainable. This concept is expected to go live in 2025 and will directly contribute to having 10 million EVs on roads by 2030.

The European Automobile Manufacturers’ Association (ACEA) said today that new car registrations for February fell by over 20% on a year-on-year basis in the European Union, Britain, and the European Free Trade Association (EFTA).

The fall was led by Spain, where new car registration fell by 38%. Among brands, the biggest decline in sales was seen in the Renault brand - 29%. BMW sales for February fell 13%.

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