Suzuki had a higher profit margin in the last quarter than BMW and overtook it to take the number one spot.

2018 BMW X3 Front
BMW has been facing dwindling profit margins

BMW has been faced with multiple setbacks ranging from the ongoing diesel scandals to losses because of the U.S. trade tariffs. The latest one to hit the company are falling profit margins because of the aforementioned reasons. The Bavarian manufacturer has been overtaken by Suzuki which had an 11.8 percent profit margin compared to the BMW’s 11.4 percent. The numbers are only applicable for the last quarter and BMW still happens to be the most profitable automaker this year.

In the unforgiving world of car manufacturing, Suzuki has come up on top in the last quarter of this fiscal year. Its rising profits are thanks to its market domination in countries like India and China. Its presence in other countries too has contributed significantly to this achievement. It is, however, interesting to note here that year on year sales fell by 4.8 percent for Suzuki. The profits, however, rose which is an indication of the efficient manufacturing and distribution process that the company is using.

BMW, on the other hand, has seen a drop of 2.8 percent in its year on year sales. The diesel scandal can be said to be a probable reason but the company hasn’t been tasked with recalling a huge number of its diesel vehicles like Volkswagen. The effect has been felt on the sales part though.

Suzuki’s coming on top in terms of profit margins is a reinforcement of the saying in the automotive industry that “someone’s loss is someone else’s again”. Are the first and the second positions that Suzuki and BMW are holding respectively temporary or permanent, we will know for sure in the coming times.

Suzuki Overtakes BMW

– The company had an 11.4 percent profit margin last quarter
– Suzuki had an 11.8 percent profit and overtook BMW to take the number one spot
– Most profitable company for the year still happens to be BMW

2018 Maruti Dzire Special Edition 1
India has a huge demand for cars like the Maruti Suzuki Dzire and the Swift

Source –