BERLIN, May 25 (Xinhua) -- Buoyant business in China helped German carmakers of Volkswagen and BMW groups defend their leading positions in the global automotive industry during the first quarter (Q1) of 2018, a study by the accounting firm Ernst & Young (EY) found on Friday.
Wolfsburg-based Volkswagen topped the international list in terms of total sales and revenue, while Munich-based BMW was achieved the first rank for profitability.
The findings were based on a comparison of the performance of the world's 16 largest carmakers' performance in Q1.
The ratio between revenue and operative profits was measured at 12.0 percent at BMW, followed by Suzuki (11.0 percent) and Daimler (8.4 percent). Volkswagen was ahead of Toyota with the highest revenue and sales but was ranked in second place behind its major Japanese rival for operative profits.
EY automotive expert Peter Fuss noted that the strong operative development of Volkswagen and BMW came in spite of currency headwinds created by the recent appreciation of the Euro.
"Profits and profit margins remain on a high level and the growth in sales shows that the trajectory (of the two companies) is the right one," Fuss said.
According to EY, buoyant business in China was once again a key driver of growth for German carmakers.
The firms were able to ward off increasingly assertive local competition by holding on to and even expanding their leadership in the premiums segment of the Chinese market. As a consequence, East Asia has by now become a vital component of global corporate strategies at Volkswagen, BMW and Daimler.?
