BMW Q1 2025 Profit Falls 26.4% Amid China Slowdown, Tariff Fears
Date: 07-may-2025 | By: Nuztrend Team
German automaker BMW has reported a significant decline in profits for the first quarter of 2025, citing weakening demand in China and uncertainty over potential U.S. import tariffs. The company’s net profit fell by 26.4%, down to approximately $2.35 billion, compared to the same period last year.
Total revenue for the quarter also dropped by 7.8%, coming in at around $36.2 billion. Global vehicle deliveries declined modestly by 1.4%, totaling 586,000 units sold worldwide between January and March 2025.
Key Financial Indicators
- Net Profit: $2.35 billion (down 26.4%)
- Total Revenue: $36.2 billion (down 7.8%)
- Vehicle Deliveries: 586,000 units (down 1.4%)
- China Sales Impact: BMW cited reduced demand across premium segments
BMW attributed the decline to two major pressures: a cooling Chinese economy, where EV competition has intensified, and the threat of U.S. trade restrictions that could increase costs on German imports, including high-end models produced in Europe.
BMW Sticks to 2025 Outlook Despite Dip
Despite the weaker Q1 performance, BMW is holding firm to its full-year forecast. The company reiterated its expectations for earnings before tax to remain comparable to 2024 levels, and projected an automotive operating margin in the range of 5% to 7%.
Executives noted that some of the auto-related tariffs imposed by the U.S. may be short-term measures, with potential reductions or exemptions anticipated by mid-2025.
Also Read
Looking Ahead: Focus on Electrification and Neue Klasse
BMW continues to invest in its Neue Klasse electric platform, which is expected to drive long-term growth through improved battery efficiency and reduced production costs. The automaker also saw a 32.4% increase in EV deliveries in Q1, led by the popular BMW iX1 and i4 models.
With production revamps underway at key German facilities and continued R&D in EV innovation, BMW remains focused on transforming its business model to weather global economic volatility.
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