German automaker BMW on Wednesday set out targets to barely enhance margins for its automotive phase 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 degree.” It forecasts the used automobile market will normalize this yr “because of the elevated availability of recent automobiles.”

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

“A excessive degree of flexibility, mixed with our operational efficiency, proved to be an efficient mixture for guaranteeing the success of the BMW Group, even within the face of headwinds and benefiting 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 e-book 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 phase, which had an. 8.6% margin final yr. The corporate posted its automative money circulation close to 11.1 billion euros.

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

“We do not have a look at one drive pattern or one phase, or one area on the earth, and I believe, for us, this performs very properly in what we mentioned a few years earlier than,” Zipse instructed 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 available on the market share facet.”

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

“Whether or not inflation actually has an enter is a matter of can you have pricing energy available in the market,” he famous. “With that world method we have now 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 on account of assume the function in Might following the retirement of Nicolas Peter on the time.

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

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

“Relying available on the market 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 effectively 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 items by 2030. The primary electrical autos of the carmaker’s MINI model are on account of enter the market this yr, after the Rolls-Royce vary launched its first absolutely EV mannequin Rolls-Royce Spectre in 2022 and can attain clients in 2023.

The automaker has been bolstering efforts to transition towards electrical autos, saying in October that it’s seeking 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.