BMW reduces profit directions after sales in China

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On Tuesday, BMW reduced its profits for the whole year after sales in China were “less than expectations”, highlighting the struggle of European car manufacturers distinguished to withstand Chinese competitors.

The Munich -based company said it is now expecting its profits before taxes for 2025 to be slightly lower than last year of 10.97 billion euros – after I previously expected the number to be fixed.

BMW said the costs of the higher customs tariffs are expected and financial support for its Chinese agents also affected the revised directives.

It is scheduled that the margin of the profits of the auto company before the benefits and taxes will range between 5 and 6 percent in 2025, at the minimum of its previous directives.

European car manufacturers are fighting to maintain their market share in China, as consumers quickly turn to buy electric cars and preferred Chinese manufacturers whose models are proud of a great discount on foreign competitors.

BMW She said that she reduced her expected sales during the rest of the year for China after the third disappointing quarter.

The number of BMW and Minis cars – a brand also owned by the auto industry company – has decreased 0.4 percent per quarter compared to the same period last year. Unit sales decreased by 11.2 percent during the first nine months of the year.

Globally, BMW units sales increased by 8.8 percent in the third quarter.

German BMW competition Mercedes -Benz It also announced on Tuesday a sharp decrease in unit sales in China in the third quarter. The number of cars sold decreased by 27 percent.

BMW said it no longer expects to get immediately to recover US -paid US customs duties than agreed in the commercial agreement between Washington and Brussels, which set a 15 percent basic tax on exports from the European Union to America.

The automobile companies have hoped to recover the cost of the high American fees paid since August 1, as soon as the European Union carried out customs discounts on US -made auto imports and auto parts.

BMW said it is now expecting to obtain a discount on the customs duties of that period of the American and German authorities with a total “large number of three numbers” in 2026.