Poor Demand In China Hits BMW Profit In Q2
BMW revealed on Thursday that its core automotive segment profit margin for the second quarter was lower than anticipated. The luxury automaker's sales were negatively impacted by increased competition and decreased demand in China.
In its car segment, the German automaker's earnings before interest and tax (EBIT) margin dropped to 8.4% from 9.2% in the same period last year. This was below the 8.7% analysts had predicted, based on a company-compiled consensus, Reuters reported.
BMW also mentioned a record level of investment, with the automaker's spending on electric vehicles and model updates anticipated to reach a peak this year.
The automaker reaffirmed its projections for 2024, indicating a minor decline in the group's pre-tax profits because of increased expenses for personnel, manufacturing, and R&D.
The company's full-year target range of 8–10% was not met by the BMW auto segment's margin in the second quarter.
In their primary market of China, local automakers are gaining market share with less expensive electric vehicles, putting pressure on BMW and its competitors to reduce prices.
The Munich-based carmaker saw a 4% slump in its China sales in the first six months of the year but performed better in the region than Volkswagen and Mercedes, Reuters reported.
Written By
Anis
Previously in banking and e commerce before she realized nothing makes her happier than a revving engine and gleaming tyres........
JPJ Running Numbers
KUALA LUMPUR
VPG2486
SELANGOR
BSF4611
JOHOR
JYA4079
PULAU PINANG
PRR4578
PERAK
ANW6126
PAHANG
CFC1078
KEDAH
KGA9157
NEGERI SEMBILAN
NEG2183
KOTA KINABALU
SJL2710
KUCHING
QAB5039L
Last updated 16 Jun, 2025
Fuel Price
Petrol
RON 95
RM 2.05
RON 97
RM 3.07
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 2.74
EURO 5 B7
RM 2.94
Last updated 12 Jun, 2025
Related News
Sime Darby Expands Luxury Car Retail Business in India, Indonesia
Sime Darby is planning to expand luxury car markets in Indonesia and India, says the CEO.
01-12-2023
High-Tech Dashboards, Driving Assistants 'Annoy' Luxury Vehicle Owners -Study
luxury automakers are annoying customers with sophisticated driving assistance technology and complicated infotainment systems.
14-02-2023
BEVs Drive Q1 Profits For BMW Group, Charting 28% YOY Growth Too
BMW Group saw 83,000 BEVs shifted across BMW, MINI And Rolls-Royce marques, marking 28% YOY growth.
10-05-2024
Future BMW EVs Will Have Bi-Directional Charging Abilities
Production-bound BMW Neue Klasse EV models, and others after, set to see bi-directional charging abilities available.
23-03-2024
BMW Believes Its High-End EVs Are Immune To Electric Downturn
BMW AG predicted that its EV market would do well despite a broader market that is struggling with waning global demand for EVs.
22-03-2024
Budget 2024 - BMW Group Malaysia Positive Outlook On Electrified & Sustainable Mobility!
Hans de Visser, Managing Director, BMW Group Malaysia, said the Budget 2024 announcements have improved the outlook for electrified and sustainable mobility in Malaysia.
14-10-2023
BMW Boosts Electric Car Spending To Rival Tesla
BMW AG is stepping up spending on its electric-car rollout.
07-08-2023
BMW Getting Closer To Its EV Goal, But It's ‘Too Soon' To Declare The End Of Combustion Engines
BMW is on track to meet its target on EV sales but it said it was too early to set an end date for the combustion engine.
04-08-2023
Latest News
This is McLaren’s New Le Mans Hypercar for 2027
McLaren has unveiled its new Le Mans hypercar for the 2027 season of the FIA World Endurance Championship.
15-06-2025
Toyota GR LH2 Racing Concept Unveiled as a Hydrogen-Hybrid Le Mans Racer
Toyota has unveiled its second hydrogen-powered Le Mans hypercar concept, known as the Toyota GR LH2 Racing Concept.
14-06-2025
Chery Nears 5 Million Export Milestone; One Vehicle Shipped Every 29 Sec
As Chery races towards 5 million exports, signs point to Malaysia welcoming its premium brand Exeed as early as 2026.
13-06-2025
London-bound Air India Boeing Crash Kills Hundreds, Leaves Sole Survivor
An Air India flight bound for London tragically crashed in western India on Thursday, resulting in over 290 fatalities.
13-06-2025
Price Wars in China Are Breaking the Supply Chain
Experts say endless price wars in China are hurting not just automakers, it’s also affecting the entire supply chain.
12-06-2025
New 2026 Audi Q3 Teased, Debuts On June 16
2026 Audi Q3 crossover teased ahead of June 16 debut, will feature upscale new design and more.
11-06-2025
Aston Martin Valkyrie LM Unveiled as the Ultimate Track Day Machine
The all-new Aston Martin Valkyrie is a track-only Le Mans hypercar that you can actually buy and drive.
11-06-2025
Nissan, Stellantis Supplier Marelli Reportedly Filing for Bankruptcy
Nissan and Stellantis auto parts supplier Marelli is reportedly filing for Chapter 11 bankruptcy protection.
09-06-2025
Show More
trending_flat