A study has revealed that BMW is ahead of rival Daimler and world No 2 automaker Volkswagen in terms of profitability for the first half of 2017.
According to the Ernst & Young study, the Munich-based company managed 49.25 billion euros in sales and registered 5.58 billion euros in profit – for a 11.3% profit margin – in the first six months of the year, German news agency DPA reports.
Surprisingly, it’s Japanese carmaker Suzuki that is second-ranked for best profit margins at 10.3%, with Daimler is third at 9.7%. Volkswagen is placed fifth on the top 10 list, behind GM, with a margin of 7.7%.
The figures for the first half of 2017 continue the trend from 2016, when over the full year BMW’s profit margin of 10% was ahead of Daimler’s 8.3%, but the introduction of a slew of new models shows that the latter is catching up.
The report adds that in terms of the pure car business, Daimler is actually more profitable than BMW, but as far as unbeatable profitability goes, no one comes close to Ferrari, which has the highest margins in the industry.
The E&Y study states that market challenges will continue to impact all players, and added that with European sales softening, the above-average growth in China will continue to cause a certain dependency for the German automakers. According to the study, BMW, Daimler and VW now sell almost every third new car in China, with VW the highest of the trio at 37% in the second quarter.
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Hello Anthony Lim. Get your facts right la. VW is still holding the title of world’s no.1 car maker.
This particular study is specifically on profitability, not sales.
For sales, yes, Volkswagen is at the top.
Where is T & H?
No1 sales in ASEAN region only.
Only here is godcar, other place is normal car.
Actually Hafriz, you are wrong to say that this study is on profitability when it says here VW is number 5 in profits.
What do you mean?…
Tristar > all
Brand prestige > all
You see here is the problem. When youngsters buy BMW they spec their cars high because they care about driving experience. When ah pek buy masilee they buy kosong spec because all they care is the badge only.
Deswai BMW makes more money despite having lower sales than masilee.
He he he. The report by E&Y is about profitability of car manufacturer in the past 6 months. This can change when the full 12 months results are fully tabulated.
It says BMW, Mercedes & VW are in the top 5 & BMW are leading now. A football match is not won at half time even if BMW is leading by 1-0.
What is for certain is Germans car manufacturer are more profitable in terms of Margin. The real King of Margin in none other than Ferrari.
Guess where are most of these cars sold?! U are right, most are sold in China. If China sneeze, Germans will catch a COLD if U get the drift. Happy “reading” folks.
Mikey you are talking nonsense. Profit margin is not about volume of cars. Its efficiency of production and cost of producing vehicles as well as selling price. Even if the Germans sell 10 million cars in China, it does not mean they will be the most profitable. Its efficiency that makes them profitable. It is a known fact that German car production is far superior to Japan, US, Korea, Italy and France. The reason they sell so many cars in China is because their cars are good and not because of pricing or anything else.
What kind of MCA rubbish is this? China has only been buying for a few years. How did Germany prosper so much before then?