The BMW Group faced a challenging Q3 2024, largely due to issues with its Integrated Braking System (IBS) and weak demand in China. These factors led to a 13% drop in deliveries, a 61% decline in operating profit (EBIT), and an 83.8% decrease in net profit compared to the previous year. IBS-related costs and warranty provisions impacted financial figures, prompting the group to adjust its annual guidance. However, the BMW Group experienced strong growth in Battery Electric Vehicle (BEV) deliveries, which rose by 10.1% year-over-year, with electric vehicles comprising 19.1% of its total sales.
Despite setbacks, BMW maintained moderate growth in European markets and managed a stable market share in the Americas. Capital expenditure remained high, focusing on future product lines and electrification, with R&D costs up by 27.2% over the prior year. The company’s Financial Services Segment reported significant growth in financing and leasing, increasing its penetration rate to 42.3%.
Looking forward, BMW aims to meet its adjusted 2024 targets, bolstered by vehicle releases delayed by IBS issues and demand for premium models.
