BMW’s profits rose sharply in the second quarter of the year. There were several reasons for the improvement. First among them was the success of the manufacturer’s 5-Series and X5 SUV, its mid-priced products. Luxury car buyers, it seems, have settled on cars that are not unusually expensive or unusually cheap.

BMW Group’s numbers, which include all of its divisions, were impressive:

Group revenues increased in the second quarter by 1.8% to reach € 19,905 million (2013: € 19,552 million) for this three-month period.

And:

Group net profit climbed by 27.2% to € 1,771 million (2013: € 1,392 million).

Auto segment numbers were even more robust:

Second-quarter revenues increased by 1.7% to € 18,504 million (2013: € 18,201 million)

And:

Segment profit before tax jumped by 36.5% to € 2,250 million (2013: € 1,648 million).

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The car and light truck results were driven by unit sales, but they were uneven by product:

The BMW brand recorded a new sales high in the period under report, with deliveries in the second quarter up by 8.3% to 458,088 units (2013: 422,844 units) and in the first six-month period by 10.2% to 886,347 units (2013: 804,248 units). The BMW 3, 5 and 6 Series as well as the X5 each led the world market in their segments.

The sales performance of the BMW 3 Series during the first half of the year was on a par with the previous year, with a sales volume of 236,289 units (2013: 237,700 units; -0.6%). It should be noted, however, that the Coupé and Convertible variants are now positioned as part of the BMW 4 Series. Altogether, a sales volume of 47,031 units was recorded for the BMW 4 Series. The number of BMW 5 Series vehicles sold between January and June increased by 7.6% to 193,560 units (2013: 179,833 units). The BMW 6 Series and BMW 7 Series were close to the previous year’s level with six-month sales figures of 13,734 units (2013: 14,012 units; -2.0%) and 26,378 units (2013: 27,100 units; -2.7%) respectively.

The various models of the BMW X family also continue to enjoy a high degree of popularity. Sales of the BMW X1 rose 0.4% to 79,344 units (2013: 79,061 units), while those of the BMW X3 increased 6.2% to a total of 82,830 units (2013: 77,959 units). The BMW X5 also continues to sell extremely well, with sales rising 29.7% to 68,283 units (2013: 52,651 units).

The 7 Series is the flagship of the BMW line and can cost well over $100,000. The 3 Series is traditionally the entry car of the brand, with a price as low as $33,000. The 3 Series is meant to compete with the low-end Mercedes, Audi, Lexus and the weak American luxury brands — Lincoln and Cadillac. The prices of the 5 Series and X5 start at about $50,000. While $50,000 seems a great deal of money compared to the prices of all cars or all brands, it is apparently the sweet spot for luxury buyers. BMW has been clever enough to offer higher priced versions of both lines, fit for buyers who want extremely luxurious features, larger engines and more complex electronics. If the customer wants to pick from a broad array of features, he can.

Luxury cars are built for the rich. The 5 Series is built for the rich who are on a budget

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