The Munich carmaker bmw is preparing for a headwind after an increase in sales in the second quarter. Business conditions are likely to remain difficult in the second half of the year, the company said on Wednesday. “Inflation and interest rate increases, which will also shape the macroeconomic environment in the coming months, will have an effect on demand. Accordingly, the above-average order backlog, especially in Europe, can be expected to normalize towards the end of the year,” says the Munich-based carmaker.
At the moment, the persistent one is the main brake chip shortage production at many car manufacturers worldwide. The scarcity was also evident in Munich. BMW sold 1.16 million cars in the first half of the year, around 14 percent less than a year ago.
BMW expects stagnant sales for 2021
However, the Munich team coped better with the lack of chips last year than the competition Volkswagen and Mercedes. The supply of semiconductors should also improve in the second half of this year. But BMW is going, among other things, because of restrictions around the outbreak of the Ukraine-War for the full year only assuming sales at the previous year’s level, which corresponds to 2.5 million cars. Sales of all-electric cars, on the other hand, are expected to double again.
Despite the decline in sales, the Munich company generated more sales in the past quarter. According to the company, sales rose by 21.6 percent to 34.8 billion euros from April to June. Analysts polled by Refinitiv had expected 33.4 billion euros. In addition, BMW benefits from the favorable exchange rate, increased car prices and the good situation on the used car markets.
More sales and less profit in the second quarter
On the other hand, BMW felt a special effect when it came to profit: At 3.9 billion euros, earnings before taxes were a good third lower than a year ago, when the Munich-based company was able to release a billion euro provision for an EU procedure. In addition, there were negative consolidation effects from the takeover of the Chinese subsidiary BMW Brilliance Automotive (BBA) of around 1.1 billion euros, as the company announced.