BMW AG, the world’s largest producer of luxury vehicles managed to beat analyst estimates when it reported third-quarter profit, buoyed by increased demand for the recently redesigned full-size X5 SUV.
On the other hand, during the period the German automaker failed to match the growth accounted by Audi and Mercedes-Benz and the company sees further threats rising as it battles to defend its luxury leadership position.
BMW’s vehicle sales during the quarter, including the Mini and Rolls-Royce brands went up 5.8% to a total of 509,669 units. That compares to a 9% rise in demand for Daimler AG’s Mercedes-Benz deliveries, which include Smart cars, as the maker totaled 431,000 vehicles – boosted by demand for its new compact models, such as the GLA compact sport-utility vehicle. Audi meanwhile, riding the introduction of numerous models in the A3 compact family, has seen new-car sales surging 7.2 % to 429,925 autos.
BMW has recently unveiled models on the lower-end of the spectrum – such as variants of the 2 Series family or the new 4 Series coupe and cabrio – in a bid to fend off Audi and Mercedes plans to recapture the top spot. Thanks to increased demand for high-profit models such as the full-size X5 and the new coupe-like X4 SUVs, BMW had a better profitability than its rivals – earnings before interest and taxes (EBIT) in the third quarter jumping 17% to a new record. On the other hand, net income dropped slightly by 1.2% to 1.31 billion euros, as the EBIT figure reached 2.26 billion euros.