WUHAN, CHINA – MAY 25: (CHINA OUT) Attendees wear protective masks as they look around the at BMW Ix3 during 2023 Central China International Auto Show on May 25, 2023 in Wuhan, Hubei province, China. More than 80 brands took part in the 2023 Central China International Auto Show which started on Thursday. According to local reports more than 40 brands electric vehicle brands participated in the exhibition. (Photo by Getty Images)
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BMW‘s net profits slumped by more than a third in 2024, flagging “continuing subdued demand in the Chinese market.”
Net profit for the year fell by an annual 36.9% to 7.68 billion euros ($8.32 billion). The print was in line with an LSEG forecast, according to Reuters.
The car maker said that it expects an earnings margin for cars of around 5% to 7% in 2025, compared with 6.3% achieved last year, but noted that the implementation of tariffs was set to have a negative impact on earnings in the year ahead.
“A challenging competitive environment and macroeconomic, trade and geopolitical developments could all have a significant impact on business performance,” the company said in a statement.
BMW’s chief financial officer said that added tariffs on U.S. imports imposed up until March 12 would lower its autos earnings margin by one percentage point, according to Reuters, citing a copy of a speech due to be delivered to investors later Friday.
BMW said that it expects an ongoing “challenging situation in China,” while also naming tariff hikes and “ongoing support measures for the supply chain” as headwinds this year.
This is a developing story and will be updated shortly.
