German carmaker BMW reported a 26.4% drop in first-quarter net profit to €2.2 billion ($2.5 billion), as weak demand in China weighed on earnings.
By Christof Rührmair, dpa
German carmaker BMW reported a 26.4% drop in first-quarter net profit to €2.2 billion ($2.5 billion), as weak demand in China weighed on earnings.
Revenues fell 7.8% to €33.8 billion as global vehicle deliveries dropped 1.4% to 586,000 units, driven by a decline in China amid intense market competition.
“Given the sustained demand for its attractive premium vehicles, the BMW Group is able to confirm its guidance for the year,” the company said in a statement.
However, it added that due to the volatile developments and ongoing negotiations around US President Donald Trump’s new tariff policy, the potential impact of tariffs in 2025 can “only be estimated, based on assumptions.”
Despite the sharp profit decline, BMW performed better than domestic rivals: Mercedes-Benz reported a 43% profit drop to €1.7 billion, while Volkswagen, Germany’s top carmaker, posted a 41% profit decline to €2.2 billion.
READ ALSO: New German Chancellor Merz leaves for first trip to Paris, Warsaw
“Stable financial performance and effective cost management characterized the first quarter despite the challenging
environment,” chief financial officer Walter Mertl said, adding that BMW will continue to optimize its efficiency and cost structures.
Industry sentiment remains poor, with the ifo Institute’s business climate index for the automotive sector deep in negative territory. Export expectations have fallen and companies see their global competitiveness outside the EU worsening.
