BMW has reported a 11% increase in its profits for the second quarter of this year due to strong sales of its three car brands.
The net profit for the period between April and June end was €1.94bn, compared to €1.74bn for the same period last year. The earnings were also more than the analysts’ forecasted profit of €1.80bn.
BMW group’s total volume of sales were 605,534 units which increased by 5.7% from last year’s volume of 573,079.
Revenue for the period was €25.01bn ($28.02bn), which was a 4.5% increase compared to last year.
The Munich-based automaker’s operating profit for the period rose from 8.4% last year to 9.5% for the present year.
The sales volume of BMW brand increased by 5.7%, while its MINI and Rolls Royce brands also saw increase of 5.4% and 14.7% respectively.
The group also noted that its global workforce saw an increase of 3.4% from 119,489 in Q2, 2015 to 123,597 for the present year.
At present, BMW is focused on rapidly expanding its position in electric and self-driving cars, as it is planning to introduce autonomous cars by 2021.
Strong financial position could enable BMW to fund next generation innovations in powertrain electrification, digitalisation and autonomous driving capabilities in its automobiles.
Recently, BMW started a partnership with Intel and Mobileye to develop autonomous driving.
BMW Group CEO Harald Krüger said: “The strength of our core business today is the foundation of our future success.”
The group has also been facing tough competition from its rival Mercedes through its E-Class and S-Class models. BMW also had to struggle to increase its sales in US as the demand for SUVs is rising and luxury sedans are at the core of BMW’s lineup.
This led to deeper discounts for sedans and BMW saw a decline of 9% in sales for the first time in six months.
