MILAN (ITALPRESS) – 2024 was a difficult year for Bmw, which experienced a number of difficulties related to a combination of external and internal factors. Despite the challenges, the German automotive giant is looking ahead to 2025 with a long-term vision, reinforced by strategic investments and technological innovations.
The year that just ended saw a decline in profits, down 37 percent from 2023, to 7.7 billion euros. This result reflects a global environment characterized by economic and political tensions, which directly affected the automaker’s balance sheets. In particular, declining demand in the Chinese market, increasing competition from local manufacturers, as well as rising energy costs have negatively affected the company’s performance.
Global sales declined by 4 percent. In China, the decline was even more pronounced, with a 13.4 percent drop. These difficulties were compounded by a recall of 1.5 million vehicles for brake problems, which further slowed deliveries. In addition, growing uncertainty due to the trade war between the United States, the European Union and China could cost Bmw up to 1 billion euros in 2025.
Despite this, Oliver Zipse, Bmw’s Ceo, said the company is “pretty safe,” while admitting that some of the tariffs introduced could persist longer than initially expected. The uncertainty over tariffs is particularly relevant for Bmw, since much of its production, 56 percent of the vehicles made in Germany, are exported outside the European Union.
Despite the challenging economic environment, Bmw has not lost sight of its long-term growth goal, focusing firmly on electrification and technological innovation. Sales of battery electric vehicles increased by 13.5 percent in 2024 to 426,536 units, accounting for 17 percent of total sales. The company announced plans to launch more than 40 new models or upgrades by 2027, including the new “Neue Klasse” electric platform, which will debut in 2025 with the Bmw iX3 model. This is a key step toward building a portfolio of low-emission vehicles, which is part of Bmw’s strategy to address the growing demand for electric cars.
To support this transformation, Bmw has increased investment in research and development to 9 billion euros by 2024 (+17.1 percent), accounting for half of the total 18 billion invested by the group. The increase in resources devoted to innovation testifies to the company’s commitment to consolidating its position in the global electric car market.
Looking ahead, Bmw expects pre-tax profits to remain stable in 2025, with an operating margin for the auto business of between 5 percent and 7 percent. Despite the complex environment of political and economic uncertainties, the company continues to focus on the resilience of its business model. Ceo Zipse emphasized Bmw’s ability to “stay the course even in difficult conditions,” an attitude that is also reflected in its forecast for the coming year.
In addition, Bmw has strengthened its financial position with a share buyback policy, leading to the repurchase of 6.35 percent of its capital at the end of 2024. The proposed dividend, although reduced compared to the previous year, testifies to the company’s financial strength.
Overall, Bmw is preparing to take advantage of the opportunities arising from electrification and technological innovation to consolidate its leadership in the automotive market. Global challenges, such as tariffs and increasing competition, will likely remain a recurring theme, but the ability to adapt and innovate will remain a hallmark for the German brand in 2025 and beyond.
photo: BMW Group Italy+
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