BMW third-quarter profit drops 15 per cent amid Chinese competition
The German luxury carmaker reported a decline in revenue and net profit as competition from Chinese automakers intensifies.
BMW reported a 15 per cent year-on-year decline in net profit for the July-September quarter on Wednesday, according to the Economic Times. The company's net profit reached 1.45 billion euros ($1.61 billion) during this period.
Revenue for the same quarter saw a decrease of nearly 6 per cent, falling to 30.45 billion euros. The automaker noted that competition from Chinese manufacturers and increasing costs have impacted its performance.
The company's vehicle deliveries in China dropped by 24.8 per cent during the third quarter, while global deliveries fell by 6.3 per cent. BMW, which owns the Rolls-Royce and Mini brands, is looking to move more of its supply chain for local vehicles to China to improve cost competitiveness.
On Tuesday, BMW issued its second profit warning of the year. The company cautioned that higher-than-expected severance payments and production ramp-up expenses could lead to an overall loss in its core automotive business in 2026.
BMW also announced it will accelerate structural measures to handle industry challenges. Like Mercedes-Benz and Volkswagen, the company has been restructuring operations and cutting jobs to manage costs as Chinese brands expand their presence.
