German automaker BMW on Wednesday set out targets to barely enhance margins for its automotive section and lift deliveries this yr, because it pushes forward with the rollout of its electrical fleet.

The corporate mentioned it expects an EBIT (earnings earlier than curiosity and taxes) margin of between 8-10% for its automotive vary in 2023, with deliveries set to rise barely from 2022 and “promoting costs remaining at a steady stage.” It forecasts the used automobile market will normalize this yr “as a result of elevated availability of recent automobiles.”

Shares of BMW rose by 1.07% at 8:20 a.m. London time, following the announcement.

“A excessive stage of flexibility, mixed with our operational efficiency, proved to be an efficient mixture for making certain the success of the BMW Group, even within the face of headwinds and profiting from alternatives for worthwhile progress,” Oliver Zipse, chairman of the board of administration of BMW AG, mentioned in a press assertion.

Like rivals, BMW has been contending with world semiconductor shortages and provide chain disruptions, difficult it to fulfil its ebook order.

The corporate confirmed the full-year 2022 outcomes reported final week, together with an EBIT of 10.6 billion euros ($11.4 billion) for its automotive section, which had an. 8.6% margin final yr. The corporate posted its automative money circulate close to 11.1 billion euros.

Because of this, it proposed a dividend of 8.50 euros per frequent stake share, in contrast with a 5.80 euro payout for a similar inventory within the earlier yr.

“We do not take a look at one drive development or one section, or one area on this planet, and I believe, for us, this performs very properly in what we mentioned a few years earlier than,” Zipse advised CNBC. “And now we’re executing this plan. And it seems to be just like the plan we’re executing right here is kind of profitable on the income facet, but in addition in the marketplace share facet.”

He harassed that the BMW technique will proceed to prioritize profitability, downplaying the impact of hovering inflation charges on client demand,

“Whether or not inflation actually has an enter is a matter of can you have pricing energy out there,” he famous. “With that world method we’ve right here, I’d be cautiously optimistic concerning the yr, and we can have a slight enhance in quantity total.”

The corporate introduced the appointment of a brand new chief monetary officer on March 9, with Walter Mertl attributable to assume the position in Could following the retirement of Nicolas Peter on the time.

BMW outcomes observe a spate of optimistic bulletins from automakers earlier within the week, with Porsche issuing an bold progress outlook after file 2022 earnings and Volkswagen laying out a five-year $193 billion funding plan.

BMW anticipates the primary progress drivers of its enterprise this yr can be its premium fashions and absolutely battery-electric autos (BEV).

“Relying in the marketplace situations prevailing within the second half of the last decade, the event of uncooked materials costs and availability, and the tempo at which a complete charging infrastructure is being constructed, the BMW Group expects to succeed in greater than 50% BEV share nicely forward of 2030,” the corporate mentioned, after signaling its BEV share will hit 15% in 2023.

BMW plans to ship 2 million absolutely electrical autos by 2025 and over 10 million such models by 2030. The primary electrical autos of the carmaker’s MINI model are attributable to enter the market this yr, after the Rolls-Royce vary launched its first absolutely EV mannequin Rolls-Royce Spectre in 2022 and can attain prospects in 2023.

The automaker has been bolstering efforts to transition towards electrical autos, saying in October that it’s trying to make investments $1.7 billion in its U.S. operations to construct such autovehicles and batteries. It launched a pilot fleet of hydrogen autos earlier this yr.