(Reuters) – BERLIN -BMW’s fourth-quarter group sales increased 10.6%, the automaker reported on Tuesday, aided by a reduction in supply chain bottlenecks in a year marred by war in Ukraine and lockouts in China.
Europe and China were hit hard by supply chain problems that cut production in the first half of the year. This led to a 4.8% drop in deliveries for the whole year.
However, revenues rebounded in the fourth quarter as the company reorganised its supply chains in Europe and relaxed restrictions in China. In Europe and China, year-over-year sales growth was 10.9% and 12.2%, respectively.
Deliveries in the United States were more consistent, declining by only 1.3% over the course of the year, with fourth-quarter growth of 11.1% providing a boost.
Also, sales of all-electric cars did well, doubling to 215,755 over the course of the year.
“We are optimistic that we can build on this achievement in 2023, as demand for our completely electric models remains exceptionally high,” said Pieter Nota, the management board member responsible for customers, brands, and sales.
BMW endured the early stages of the COVID-19 pandemic more effectively than its competitors, resulting in record sales in 2021. Though 2022 will present greater difficulties, it has thus far made up for the decline in sales volume with price increases.
A trading update released on Tuesday said that the automaker wants to switch to a direct sales model in 24 European regions, where agents will act as sales reps.
The goal is to reach “new online-savvy client target groups,” according to the statement.
Mini automobiles will be offered under this business model beginning in 2024, with BMW following in 2026, according to the company.
