(Munich/Beijing) – Despite fierce competition and a complex and volatile market environment, the BMW Group achieved its business targets for fiscal 2023 as expected and maintained continuous business growth, with group revenue of 155.498 billion euros, according to the BMW Group's 2023 financial report. In 2023, the BMW Group delivered 2,554,183 luxury vehicles worldwide, up 6.4% year-on-year. Among them, 824,932 BMW and MINI vehicles were sold in the Chinese market, a year-on-year increase of 4.2%.
Throughout 2023, BMW and MINI BEVs are the main drivers of business growth. In 2023, the BMW Group delivered more than 375,000 BEVs to customers worldwide, up 74.2% year-on-year, achieving its target of approximately 15% of the Group's total sales volume of BEVs. Together with the plug-in hybrid models delivered throughout the year, the BMW Group sold more than 560,000 new energy vehicles in 2023, a year-on-year increase of 30.5%. In the Chinese market, which is a bellwether for electrification, the BMW Group will deliver about 100,000 BMW BEVs in 2023.
As an innovation-driven company, continuous R&D investment, efficient R&D system and excellent R&D team are the foundation for the forefront of the industry, and the BMW Group has always attached great importance to investment in cutting-edge technology and innovation. In order to continuously enhance the company's innovative strength, the Group has invested more than 6 billion euros in research and development for the third year in a row. In particular, R&D investment in 2023 increased significantly to 7.538 billion euros, a year-on-year increase of 13.8%, accounting for about 5% of the group's revenue. These investments are focused on three main areas: the development of electrification and digitalization of models, the development of autonomous driving, and the development of new models, including the new generation of BMW.
The new generation of BMW models will be a leap forward in the direction of the BMW brand and products. According to the plan, the new generation of BMW models will be launched in the global market in 2025, and at least six models will be put into production within the next 24 months. The next-generation model will be produced in Shenyang, China, in 2026. The new generation of vehicles will feature three major features: 1) a newly developed E/E architecture with a new user interface and human-machine interaction concept, 2) a newly developed electric drive and battery system with high performance and significant efficiency improvements, and 3) a new level of cyclical sustainability throughout the product life cycle.
Comprehensively enhance the R&D strength in China and fully prepare for the "new generation".
The BMW Group's continuous high investment in R&D and the "BMW Next Generation" are closely related to the Chinese market. The company has set up R&D departments in China for nearly 20 years, and has established the largest and most complete R&D network outside of Germany in China, with four R&D and innovation bases located in Beijing, Shanghai, Shenyang and Nanjing, with full-process R&D functions and full-stack intelligent connected vehicle software development capabilities. In 2023, BMW's R&D system will be further enhanced: the Shanghai R&D center was upgraded again in July, and the second phase of the Shenyang R&D center expansion project was officially opened last year, strengthening BMW's ability to develop and validate localized new energy vehicles. The facility has 19 new laboratories, 17 of which are dedicated to testing new energy vehicles, and at the end of last year, an upgraded EMC laboratory was opened at the Shenyang R&D center to create a stronger "immune system" for BMW products in the digital age through aviation-grade interference and immunity tests. BMW has also made progress in R&D in the field of autonomous driving, and in December 2023, BMW Group's vehicles equipped with Level 3 autonomous driving functions were granted a high-speed autonomous driving test license in Shanghai.
In the past three years, BMW's R&D team in China has tripled and now has more than 3,000 R&D and digital talents, focusing on software development, autonomous driving, and UI/UX design and development. BMW's R&D and design teams in China are deeply involved in many of the key aspects of BMW's next-generation models, and the innovations in the Chinese market will be the highlight of the new generation of models.
In 2023, the BMW Group's capital expenditures on plants, equipment and fixed assets also increased significantly to EUR 8,836 million, up 8.5 percent year-on-year. Significant investments have been made in key areas that will affect the future of the company, such as facilities for electrification and autonomous driving, the production of power batteries in various markets around the world, and the construction of a plant in Debrecen, Hungary.
We will continue to upgrade our production system and accelerate the pace of domestic production of next-generation models
The investment in China is also an important part of this, mainly including BMW's sixth-generation battery project and the upgrading of the existing plant at the Shenyang production site. The sixth-generation EV battery project, which adheres to the BMW iFACTORY production strategy, has a total investment of 10 billion yuan, and the main building of the project has been completed. The new production facility will lay the foundation for the implementation of the BMW Group's latest technologies in China and the production of low-carbon, efficient and high-quality power batteries, and accelerate the pace of domestic production of next-generation models.
In 2024, the production network related to the new generation of models will be further expanded, and the BMW Group's R&D investment and capital expenditure on the automotive business will peak. R&D investment is mainly focused on electrified vehicles, including next-generation models, and digital innovations in the vehicle, such as vehicle connectivity, software stacks, and autonomous driving. A large amount of capital expenditure is mainly related to plants, products and innovative technologies.
Based on its strong confidence and commitment to the Chinese market, the BMW Group continues to invest in China and expand its business presence in China. Since 2010, BMW's Shenyang production base has invested approximately RMB 105 billion. The BMW Group will continue to establish a foothold in China, continuously enhance the strategic position of the Chinese market in the company's future development, and contribute to the high-quality development of China's automotive industry with continuous product and technological innovation. (Automobile self-media: Northeast car family)