Earnings before interest and taxes (EBIT) rose nearly 19 percent to 2.13 billion euros ($2.80 billion), far better than the average estimate of just 1.77 billion from a Reuters poll of 13 banks and brokerages.

The overwhelming bulk of this stemmed from its core car business, where EBIT as a percentage of revenue fell slightly to 11.6 percent. Analysts had expected 10.7 percent.

Results were driven by rising sales of high margin vehicles including its family of SUVs and more importantly the 7 Series flagship limousine. Regionally, Japan and China accounted for most of the increase in overall sales volumes.

"We have recorded the best first-quarter figures ever -- for sales volume, revenues and earnings -- in the BMW Group's corporate history," Chief Executive Norbert Reithofer said in a statement.

The company reiterated it expects to hit new records in sales volumes and pretax profit, and confirmed its automotive business would achieve an EBIT margin at the upper end of its 8-10 percent target corridor.

Last year, earnings before tax jumped 52 percent top 7.38 billion euros on the back of 1.67 million vehicles sold, while its car segment enjoyed an 11.8 percent operating return on revenue.

BMW aims to sell over 2 million vehicles across its three car brands in 2016, four years earlier than at first planned.

(Reporting by Christiaan Hetzner; Editing by Noah Barkin)

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