BMW expects slight growth in 2023; cuts Germany gas intake by 15%

Europe

BERLIN — BMW expects to reach the higher end of its 7-9 percent margin target for the cars business and sees slight sales growth in 2023, Chief Financial Officer Nicolas Peter said.

Demand was recovering in China in the third quarter after lockdowns plagued the first half, Peter said, describing it as a “roller coaster” year in their largest sales market.

In Europe, order books were still full but demand was weak in Germany and the UK, and stronger in France, Spain and Italy.

BMW expects to hit its target of 10 percent fully electric sales this year at around 240,000 to 245,000 vehicles and could see that figure rising to around 400,000 next year, Peter said on Monday.

Like other carmakers, BMW has had to contend with shortages of semiconductors and supply chain disruptions related to the pandemic that have slowed the production of EVs.

Compared to last year, global sales this year will be slightly lower due to losses in the first half, according to Peter.

Next year, however, the company aims to make “another big leap” in purely electric vehicles, he added.

Asked how BMW was responding to the gas shortage in Europe, Peter said it had reduced its gas intake in Germany and Austria by 15 percent and expected to be able to cut it further.

“The gas issue will not have any direct impact on us this year,” Peter said, adding they had also not seen any production cuts in its supplier network so far.

Volkswagen and Mercedes-Benz have outlined contingency plans in the past week should their supplier networks fail to deliver parts, including increasing orders from suppliers outside of the European countries most affected by the gas crisis.

Peter did not give specifics on whether BMW was doing the same but said it had developed a far closer relationship with its supplier network since the chip shortage.

Bloomberg contributed to this report

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