Net profit for BMW soars to €1.7 billion in Q3

German luxury carmaker BMW more than tripled its earnings in the third quarter, the company announced on Wednesday, in a rare beacon of hope for the country's ailing automotive industry.

Net profit came in at about €1.7 billion between July and September, compared to €476 million in the same quarter last year when BMW was struggling with brake issues.

"In the third quarter, we once again proved that our business model is robust and resilient," said chief executive Oliver Zipse.

Global sales were boosted mainly by BMW M models and electrified vehicles, and the company remains "fully on track" to reach the European Union's carbon dioxide (CO2) emissions targets for 2025, Zipse said.

Meanwhile, BMW, which also owns MINI and Rolls-Royce, said it expects sales of the iX3 to improve further next year, after reception for the first model of its new range of electric vehicles (EVs) was "extremely positive."

So far, the iX3 is only available in Europe.

With net profits of €5.7 billion in the first nine months, BMW's latest figures are significantly more solid than results posted by its German rivals, even though the luxury brand has also been struggling with competition on the Chinese market and new US tariffs, causing it to slightly lower its annual forecast last month.

By the end of September, Mercedes logged earnings of €3.9 billion, while Volkswagen profits slumped to €3.4 billion in the nine-month period.

Industry expert Ferdinand Dudenhöffer said it was thanks to BMW's "stable long-term strategy" that the carmaker is in a much better position than other German manufacturers.

"Mercedes has misjudged the market by focusing too strongly on luxury, while Porsche has placed too much emphasis on electric mobility too quickly," he said. "Both now have to backtrack, and that costs sales and money."

While things are starting to look up at Audi, the firm is still struggling with the aftermath of the diesel emissions scandal that erupted in 2015, Dudenhöffer said.

Meanwhile, Volkswagen, which owns Audi and Porsche, "is busy cutting jobs," the expert added.

But according to Dudenhöffer, there are areas were BMW has to improve as well, noting that the firm is boosting sales in Germany by granting customers discounts.

He also stressed the need for the carmaker to improve its performance on the Chinese market to keep a leading position, pointing to Audi and Volkswagen, who are planning to manufacture models in China specifically designed for the Chinese market in order to compete with local prices.