Many of the world’s leading car makers have been posting big profit or sales share increases over the last 6 months, a situation that might surprise some people who feel that economically things are still challenging. The most recent of these is BMW, who announced that its second quarter profits more than doubled. It posted a net profit of 1.8 billion euros, or 1.6 billion pounds.
The company sold nearly half a million cars – 450,608 to be precise – which is a year on year increase of 18.5%. While BMW sold a good proportion of its wares in its home market of Germany (80,300), the number of units it sold in China really wasn’t far off this (63,300). As with many other established European and American car brands, the emerging markets are keeping margins healthy.
Some of this success includes sales from BMW-owned brands MINI and Rolls Royce. As part of BMW’s recent plans to invest heavily in its UK manufacturing base, the company will be launching a new MINI Coupe and a MINI Roadster in 2012. Since 2001, 2 million MINIs have been built in the firm’s Oxford plant, over three quarters of which were sold abroad.
All in all, BMW are expecting to have sold 1.6 million vehicles by the end of the year.
With all the economic strife occurring around the world, it is perhaps surprising that such a prestigious brand of car is doing so well. But the BMW appears to be one of the must-have items for the new middle classes of countries like China and India.
While the benefits of increased BMW sales will perhaps be felt most of all in the company’s home territory of Germany, the effects will be enjoyed in BMW car plants around the world. Other services that necessarily spring up around car sales will also bring economic growth, in the form petrol stations, car maintenance services, vehicle recovery services and insurance sales – to name just a few.
The world’s love affair with the car looks to be far from over.
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