BMW eyes upper end of 2020 margin target for automotive division

German luxury carmaker BMW expects the operating profit margin at its automotive segment to come in at the upper end of its guidance in 2020, finance chief Nicolas Peter said, adding that business had recovered faster than expected.

File Image : BMW logo on steering wheel (Reuters)
File Image : BMW logo on steering wheel

The group now expects the segment's margin on earnings before interest and tax (EBIT) to come in at 2%-3%, having previously expected 0%-3%, Peter said.

"The year has developed better than expected," Peter told journalists on Wednesday, adding volumes were now expected to decline by around 10%, compared with a forecast of at least 10% earlier. Volumes will rise in 2021, Peter said.

Also Read : BMW takes its iX electric car to Arctic Circle

"We've also got a real pickup in order intake," he said, adding the group was preparing for a strong first quarter in Asia, including China.

The group last month said Chinese demand for luxury cars had helped third-quarter profits rise nearly 10%, though it warned a new wave of coronavirus infections sweeping Europe and the United States posed a "considerable" risk to business.

"We can see it in our order intake, but it's definitely not of the same magnitude we saw in spring."

First Published Date: 17 Dec 2020, 13:46 PM IST
Shopping Bag Shop Now
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
5% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 94 Rs. 99
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic)
Rs. 349
5% OFF
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Musk After Smoke (7.5g)
Rs. 94 Rs. 99

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.