2,399,636 – that’s precisely how many cars the BMW Group sold in 2022. That number represents a decline of 4.8% compared to 2021, but the German luxury brand has high hopes for the current year. The automotive conglomerate has adjusted its forecast for the whole 2023 and it’s now expecting a “solid growth” compared to the previously projected “slight growth.”
The company is on track to beat last year’s results taking into account deliveries in the first six months of 2023 rose by 4.7% to 1,214,864 units compared to January-June 2022. Demand in the latter half of the year should be fueled by the release of the new 5 Series and its first-ever fully electric i5 derivative. Near the end of the year, BMW will introduce the next-gen X2 and it too will have a zero-emission variant as the iX2. Having recently facelifted the X5 and X6, the two large SUVs could help improve on last year’s results. There’s also a new wave of MINI models coming soon, complete with EV derivatives.
However, it’s not all positive considering BMW believes it’ll continue to face rising manufacturing costs as suppliers are impacted by inflation as well as by higher material and raw material costs. Overall, the German automaker is running a healthy business by achieving a free cash flow of €3.1 billion in the first half of the year. In case you’re unfamiliar with the term, free cash flow is the amount of money left after paying operating expenses and capital expenditures.
The BMW Group is an impressively complex automotive giant by having more than 30 production sites and a dealer network in over 140 countries. Managing such an extended product lineup takes a lot of preparation but the company is looking to simplify its offerings. The 6 Series GT will reportedly be gone by year’s end while the Z4 is unlikely to live past 2026. The 8 Series also faces an uncertain future and there might not be a next-gen X4, albeit an iX4 could replace it.
On the MINI side, the Clubman is being retired with a Final Edition. As far as Rolls-Royce is concerned, the other British brand part of the BMW Group has already indirectly replaced the Wraith and Dawn with the fully electric Spectre.