FILE PHOTO: A worker cleans a BMW i7 xDrive60 elecric car while...

FILE PHOTO: A worker cleans a BMW i7 xDrive60 elecric car while it is charging at a BMW dealership in Sandton, South Africa, October 27, 2023. REUTERS/Siphiwe Sibeko/File Photo© Thomson Reuters

By Victoria Waldersee

BERLIN (Reuters) -BMW forecast strong fourth quarter sales on Friday and said its order book was filled into the first few months of next year, with executives adding they saw no need to cut prices as some rival automakers have.

Vehicle availability was improving as supply chain bottlenecks eased, though higher material and logistics costs persisted, particularly for labour, the German group said.

Shares were up 3.3% at 1035 GMT, with third-quarter results largely in line with expectations and delivered in a more optimistic tone than some competitors, which warned of a subdued market environment curbing demand.

Pressed on whether BMW felt the need to cut prices to boost electric vehicle demand, particularly in China where a battle for market share has raged this year, Chief Executive Oliver Zipse said this approach was not in BMW's playbook.

"We have no interest in sinking prices to gain market share. That's not our strategy. And as you can see, we are managing to grow substantially even with very acceptable prices," he said.

The premium carmaker has forecast an annual margin on earnings before interest and taxes (EBIT) in its cars division of 9.0%-10.5% and is on course to hit that target with a 10.3% margin so far this year, it said.

Higher-priced and fully electric cars boosted quarterly revenues above expectations of eight analysts polled by LSEG to 38.5 billion euros ($40.92 billion), but group net profit fell 7.7% after last year's figure benefited from a one-off boost when BMW took majority control of its Chinese joint venture.