BMW and Toyota both lifted full-year forecasts today, despite the fact the German car giant reported falling profits for the third quarter as it drives investment into electric vehicles.
Costs in the third quarter dampened BMW earnings, with earnings before interest and tax dipping 3.2 per cent to €2.3bn (£2bn) from the same time last year. BMW said it had been "influenced by significantly higher investments, as well as expenses for research and development". Profit before tax fell 5.9 per cent to €2.4bn.
As for revenues in the third quarter, they edged up 0.3 per cent to €23.42bn.
Deliveries of BMW brand vehicles breezed past the 1.5m mark for the first time in the first three quarters of a financial year, boosted by a strong showing from its flagship BMW 7 Series.
Challenging market conditions within the global luxury sector were cited as a reason for the 10.7 per cent dip in Rolls-Royce deliveries.
The company said it remains "firmly on track" to secure a successful 2017 financial year, and expects "a solid increase in group profit before tax".
“At the same time, we continue to expect higher expenditure in the fourth quarter for key technological and strategic projects as well as the roll-out of the largest model offensive in the history of the BMW group," BMW chairman Harald Krueger said. "Other factors to bear in mind are the politically volatile environment and high upfront expenditure for electric mobility and autonomous driving.”
BMW is one of many ramping up its electric car efforts and focus on new technology, such as driverless cars. Today, it reiterated a previous pledge to offer 25 electrified models by 2025. This year, BMW said it is on course to deliver more than 100,000 electric vehicles.
Toyota meanwhile, delivered higher than expected earnings in its second quarter and lifted its full-year earnings forecasts due to a weaker yen. It now expects full-year operating profit to come in at two trillion yen.
The Japanese firm has also been upping its research spending on new tech across the fields of electric and driverless cars too.
TMC executive vice president Osamu Nagata, said although the firm felt the positive effect of yen depreciation and cost reduction efforts, operating income decreased by 20.3bn yen, "mainly due to the effects of marketing activities and an increase in expenses".