66 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Financial Performance F I N A N C I A L P E R F O R M A N C E 66 Overall Assessment by Management of the Financial Year 67 General and Sector-specific Environment 69 Comparison of Forecasts with Actual Outcomes 70 Financial Position 79 Course of Business and Segments 87 Comments on the Financial Statements of BMW AG BMW Group stays on course and maintains its leading position in the global premium segment The BMW Group maintained its strong market position in the global premium segment in 2024 with sales up in both Europe and the USA. The BMW brand gained further market share in Europe, grew sales in the USA and maintained its leading posi- tion in China. Globally, the BMW brand was the leader in the pre- mium segment. While model changeovers at MINI and Rolls- Royce led to an expected downturn in delivery figures, the BMW Group’s all-electric automobiles (BEV) continued to per- form well and accounted for 17.4% (2023: 14.7%) of total de- liveries. The BMW Group is therefore pressing ahead with the ramp-up of electric mobility as planned. BMW Motorrad achieved a new record for deliveries in 2024. The Financial Services seg- ment saw a solid increase in the number of new contracts signed during the reporting period. The BMW Group adjusted its full-year forecast in September 2024. The adjustment was due to delivery stops and recalls linked to the Integrated Brake System (IBS) that is provided by a supplier, as well as ongoing muted demand in China. The sub- sequent significant decline in vehicle sales in the third quarter also had a considerable impact on earnings. The measures re- quired for the IBS were initiated in the third quarter and largely completed by the end of the year. The Chinese automotive mar- ket remains weak despite the government’s support measures, with consumers still very hesitant to spend. The BMW Group achieved its revised targets for 2024. At 6.3%, the EBIT margin of the Automotive segment was within the ad- justed target range of 6 to 7%. As in previous years, the carbon emissions generated by the EU new vehicle fleet continued to decrease and, at 99.5 g/km, remained well below the limits set for 2024. Maintaining a consistent focus on technology open- ness allows the BMW Group to develop innovative drive technol- ogies and to respond in a flexible manner to market develop- ments. The BMW Group believes it is well positioned on the basis of its robust strategy, balanced product range and continuous in- vestment in research and development. FINANCIAL PERFORMANCE OVERALL ASSESSMENT BY MANAGEMENT OF THE FINANCIAL YEAR