Strong demand for new vehicles in China has facilitated a faster-than-expected recovery in the car market. Nearly all major carmakers topped analysts’ expectations for the third quarter to facilitate a great buying interest.
Robust demand for luxury vehicles helps BMW
BMW (ETR: BMW) saw its profit rise by 10% in the third quarter on a stronger-than-expected demand in China. The German giant saw its quarterly profit before taxes rise by 9.6% to 2.46 billion euros.
“After a more stable phase in the economic environment in the third quarter, the pandemic is now clearly regaining momentum,” BMW said.
“If the pandemic takes an even more serious course and the global economy experiences a perceptible downturn, the risk exposure could be considerable, particularly on the demand side.”
EBIT margin jumped to 6.7%, from -10.4% in the previous quarter and 6.6% last year. Strong numbers came as a result of higher deliveries, which rose by 9.8% in the quarter.
BMW share price closed the week 8.35% higher to erase last week’s losses.
Shares of Ferrari erupt higher
Ferrari (BMV: RACE) share price rallied over 14% to record the best week in a few years. The maker of luxury vehicles upgraded its adjusted core earnings to 1.125 billion euros in 2020, slightly higher than the previous guidance range of 1.075-1.125 billion euros.
“Solid proof that we are now running on all cylinders. We’ll enter 2021 with a very strong order book, we should have a pretty strong year,” Louis Camilleri, the CEO of Ferrari said.
Ferrari saw its shipments fall by 6.5% in the third quarter, although deliveries of F8 Spider and the 812 GTS rallied. Read here on
