FRANKFURT -- BMW Group plans to stick to a goal for an 8 percent to 10 percent return on sales at its automotive division, even with the arrival of less profitable electric cars, CEO Harald Krueger said.
"We're sticking to our 8 to 10 percent goal and maintain this range, even when electric mobility becomes more widespread," Krueger told journalists at the auto show here on Tuesday.
"We need to reach that corridor in order to finance our investments in new areas like digitalization," he said.
Rival Daimler, whose Mercedes-Benz brand is launching a new EQ family of EVs, on Monday set a new target of saving 4 billion euros ($4.8 billion) by 2025 to help offset the lower profitability of electric cars. It said full-electric cars may initially only earn half the margin of equivalent vehicles with combustion engines.
Krueger said he saw no need for an explicit target for savings, arguing BMW permanently worked on efficiency gains. He said electric vehicles are expensive for carmakers to produce currently but advances will lead to a more cost competitive proposition for both carmakers and customers.
BMW unveiled the i Vision Dynamics concept, which previews the next model in its electrified i subbrand, at the show.
Krueger also said that the share of BMW's sales in Europe accounted for by diesel engines had dropped to 69.3 percent from 74.3 percent, but that he saw no need for writedowns on the value of the cars in its leasing fleet.
Christiaan Hetzner contributed to this report