Forecast on sales: BMW expects strong figures in 2021

BMW looks forward to an optimistic forecast despite the current global pandemic we live in. Things are looking bright ahead of the BMW Group this 2021. Handelsblatt reported that Nicolas Peter, BMW Chief Financial Officer, said that they are anticipating a 5 to 10 percent increase in the Bavarian brand’s global sales. And BMW specifically targets the upper end of this range.

In 2019, BMW recorded an all-time high in sales, which was also the company’s highest peak of sales ever. This year, the Bavarians plan to carry this out by attaining a nearly 10 percent increase. Such action leaves only one impression. BMW thrives to march ahead and look toward the future. All of these, despite the challenges in the automotive market, brought about by the pandemic.

The positive outlook is driven by the BMW sales figures for the first quarter of 2021. Just recently, we’ve seen their U.S. market rebound a growth of 2.1 percent in Q1 2021 compared to last year. Asia, with the booming Chinese market, still dominated the contribution in the Bavaraians’ significant sales growth.

However, the move towards electrification might bring a decrease in profitability. In the electrified world, there certainly exists economies of scale. Due to this, BMW will eventually achieve large cost reductions. Yet again, Handelsblatt states that BMW Group’s profitability on electric cars does not expect a return of 8 to 10 percent until 2030.

In a press release, they reported that “the EBIT margin forecast in the Automotive Segment should be within the range of 6 to 8%.”. Also, in the automotive segment for 2021, BMW targets a Free Cash Flow of over 4 billion euros.

True, there are uncertainties about whether the worst is behind us. But one thing remains sure: BMW always thinks of long term plans.

Source: BimmerToday