BMW’s electric vehicle sales surge, but chip shortage poses challenge

The BMW i4 seen through a BMW press event in Garching, Bavaria, on September 29, 2021.

Matthias Balk | photo alliance | Getty Photographs

The BMW Group’s profits of thoroughly electrical motor vehicles grew by 121.4% in the first 9 months of 2021, hitting 59,688 units, with the German carmaker stating Wednesday that electrical mobility was “starting to be an significantly very important development driver and results issue” for the enterprise.

In complete, the Munich-headquartered business offered 231,575 all-electrical and plug-in hybrid automobiles in between January and September, a soar of 98.9%. By comparison, in the 3rd quarter of 2021 by itself, Elon Musk’s Tesla states it delivered 241,300 vehicles.

BMW’s electric powered auto figures had been contained in an earnings report revealed Wednesday. Internet gain for the 3rd quarter of 2021 amounted to 2.58 billion euros ($2.99 billion), a increase of 42.4%. This was in spite of deliveries in its automotive segment dropping by 12.2% in contrast to the 3rd quarter of 2020.

“In the third quarter 2021, operations ended up more and more impacted by supply bottlenecks for semiconductor factors,” the corporation stated. “While this resulted in production quantity shortfalls and reduced income volumes throughout the period from July to September 2021, the effects was much more than offset by optimistic rate results for new and pre-owned autos.”

Back on the EV front, the BMW Group wishes thoroughly electric powered vehicles to stand for at least 50% of its deliveries by the calendar year 2030.

BMW is a person of several effectively acknowledged businesses pushing an electrification system. In March, Volvo Cars reported it prepared to become a “absolutely electric powered vehicle enterprise” by the 12 months 2030.

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In July, the Volkswagen Group said half of its gross sales were envisioned to be battery-electrical automobiles by 2030. By the year 2040, the organization reported just about 100% of its new motor vehicles in major markets should really be zero-emission.

This change to electric mobility arrives at a time when key economies close to the environment are making an attempt to cut down the environmental footprint of transportation.

The U.K., for example, desires to halt the sale of new diesel and gasoline automobiles and vans by 2030. It will call for, from 2035, all new vehicles and vans to have zero tailpipe emissions.

In other places, the European Fee, the EU’s executive arm, is targeting a 100% reduction in CO2 emissions from autos and vans by 2035.

— CNBC’s Chloe Taylor contributed to this report