BMW has logged its highest SUV profitability since 2011. Much of their success has been attributed to the rising popularity of the X5 model in China.
BMW’s second-quarter earnings before interest and taxes jumped to 11.7% of sales from 9.6% the year prior. Those numbers beat 9.9% from Audi AG, the world’s second largest premium car maker. BMW is rolling out 16 new or refreshed models this year to win customers and compete against competitors like Volkwagen AG’s Audi and Mercedes to gain the global premium sales lead by 2020. BMW has seen a 30% boost in X5 sales in the first six months of this year. The 7-Series sedan has gained 7.6% more buyers.
Arndt Ellinghorst, an analyst from ISI Group in London, said, “It’s very impressive. The second half won’t be as strong, but they’ll have a stronger cash flow because they’re selling all the product.”
BMW will release the hybrid i8 this year, which will be its first sports car in 30 years. Additionally, the i3 electric city car and the 4-Series coupe and convertible will make it to showrooms in short order. BMW plans to manufacture two million cars this year and thereby eclipse their sales target two years ahead of schedule. Chinese BMW sales have rocketed by 23% in the first half of this year.
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