(By Observer Net, Zhang Jiadong, Editor: Gao Xin)

On October 8 local time, BMW announced that it has lowered its full-year profit forecast. BMW stated that higher-than-expected tariff costs and financial support for Chinese dealers also affected the revised performance expectations.

It is currently expected that the pre-tax profit for 2025 will be slightly lower than last year's 10.97 billion euros (about 90.98 billion yuan), which was previously expected to remain flat; at the same time, the company's 2025 EBIT margin is expected to be adjusted to between 5% and 6%, also lower than the previous expected level.

Bloomberg

The Financial Times, in related reports, said that the downward adjustment of BMW's profit expectations highlights the difficulties faced by European premium car manufacturers in competing with Chinese competitors. The report stated that European car manufacturers have been trying to retain their market share in China, where Chinese consumers have rapidly shifted to purchasing electric vehicles and favor Chinese manufacturers whose vehicle prices are much lower than foreign competitors.

In addition to the financial performance, BMW also reduced its sales forecast for the last quarter of this year in China. According to statistics, in October this year, the sales of the BMW Group (including the BMW and MINI brands) in the Chinese market decreased by 0.4% compared to the same period last year, while the sales for January to September decreased by 11.2%.

At the same time, BMW's German competitor Mercedes-Benz also announced on the same day that the company's car sales in China for the third quarter dropped sharply, by 27%. European Automotive News reported that Audi and Porsche under Volkswagen were also impacted by Chinese competitors.

New Generation BMW iX3 BMW Group Official Website

Currently, BMW has bet on its next-generation electric vehicles to boost sales. Ahead of the Munich Motor Show in September, BMW launched the new iX3, the first model of its Neue Klasse New Generation series, and BMW said it has invested over 10 billion euros (about 82.93 billion yuan) in this series. Mercedes, on the other hand, introduced a new generation of all-electric GLC SUV to seek sales security.

Additionally, BMW stated that once the EU implements tariff reductions on cars and automotive parts imported from the US, automakers have always hoped to recover the US tariffs paid since August 1, but the company no longer expects an immediate refund of the tariffs paid to the US, instead expecting the US and German authorities to pay up to hundreds of millions of euros in tariff compensation by 2026.

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Original: https://www.toutiao.com/article/7559137393719263795/

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