The tipping point for the combustion engine has already been reached, BMW CFO Walter Mertl told journalists. "Our growth will come primarily from electric vehicles." The background to this is that CO2 regulations are preventing further growth in many regions. "The current sales plateau of combustion cars will continue and then fall slightly." At the same time, BMW is sticking to its long-term sales forecast: "We see a sales potential of three million cars."

The ramp-up of electromobility will not be at the expense of the profit margin: The margin target of eight to ten percent in the car business stands. "And so far, we have still delivered what we promised." BMW is already earning money with every e-car, even if the profit margin is not yet as high as with a combustion engine. However, BMW is hoping for a significant boost from the introduction of the next battery generation with the New Class, which will come onto the market from 2026. At the same time, the costs for combustion vehicles are rising, partly due to the Euro 7 emissions regulations. "You can't get all that for zero cost."

Mertl was confident about the current year: "Our order backlog now extends into the second quarter, which makes us confident that 2024 will also be a good year," he said. However, price pressure is likely to continue: "Despite our strong price discipline, discounting will be an issue in certain price bands." In China in particular, prices, especially for e-cars, have recently been under pressure after Tesla lowered its prices, but discounts are now also back on the agenda in other markets.

Last year, the Munich-based company sold 2.5 million BMW, Mini and Rolls-Royce brand cars, more than ever before. 15 percent of the cars sold were electric cars. For the current year, the company has set itself the target that every fifth car will have only an electric motor - this could mean a total of 500,000 electric cars.

(Report by Christina Amann; Edited by Scot W. Stevenson; If you have any questions, please contact our editorial team at Berlin.Newsroom@thomsonreuters.com (for politics and the economy) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets)