BMW registered 5.58 billion Euros profit in first half of 2017; leaves behind Daimler and Volkswagen
German luxury auto giant BMW has beaten the Mercedes-Benz and world’s second biggest automobile group Volkswagen in terms of profit in the first half of 2017. The Bavarian auto giant has managed to fetch 49.25 billion Euros in sales and registered 5.58 billion Euros of profit. This marks an 11.3% profit margin for the brand.
The second position is held by Japanese auto giant Suzuki with 10.3% profit margin in the first six months of 2017. Mercedes-Benz is positioned at the third position with 9.7%, while fourth and fifth positions are held by General Motors and Volkswagen. Volkswagen has a profit margin of 7.7% that much lower than BMW. Interestingly, this is not the first time BMW has beaten Mercedes-Benz in terms of profit as in 2016 too, the former had a profit margin of 10% compared to the latter’s 8.3%.
Mercedes-Benz managed to increase its profit margin thanks to the launch of a range of new models. But, it is clear that BMW is continuing the trend. Another trend is that BMW, Mercedes-Benz and Volkswagen sell almost every third new car in Chinese market. Volkswagen is on top of these three brands with 37% registered in the second quarter.
While the demands for premium cars have been increasing in several emerging markets, China plays a very important role in the growth of the car brands. The major auto market is evidently showing more interest towards the premium luxury cars and global luxury automakers like BMW, Mercedes-Benz, Audi and Volvo are trying to grab a sizeable share there.
Interestingly, India too is not very far behind in terms of the demands for luxury cars. Mercedes-Benz has been launching several new products here and the brand has seen impressive success here. A large number of the total sales in India comes from the young buyers who prefer luxury over the basic means of commuting, while purchasing a car.