BMW Q3 profit falls 15% as China competition weighs

Net profit for the July-September quarter fell to 1.45 billion euros ($1.61 billion), while revenue declined nearly 6% to 30.45 billion euros, BMW said.

On Tuesday, BMW issued its second profit warning this year, cautioning that expenses related to a production ramp-up and higher-than-expected severance payments could push its core automotive business into an overall loss in 2026.

The company also announced plans to accelerate structural measures to address mounting industry challenges.

Like its German rivals Mercedes-Benz and Volkswagen, BMW has been cutting jobs and restructuring operations to reduce costs as Chinese automakers gain ground with more affordable and technologically advanced vehicles, AFP reported.

The competitive pressure has been particularly intense in China, where local manufacturers have increasingly challenged European brands and expanded their export ambitions into overseas markets, including Europe.

BMW's vehicle deliveries in China plunged 24.8% in the third quarter, weighing on its overall performance. Global deliveries fell 6.3% during the period. Deliveries in China had already dropped to their lowest level since 2017 last year.

The automaker, which also owns the Mini and Rolls-Royce brands, is seeking to regain market share in China by shifting more of its supply chain for locally sold vehicles to the country. The strategy aims to improve cost competitiveness and better align its products with local market requirements.

BMW's latest results underline the growing challenges facing European automakers as they contend with weaker demand, restructuring expenses and intensifying competition from Chinese manufacturers in the world's largest automotive market, AFP reported.