Singapore’s leading Chinese-language newspaper Lianhe Zaobao recently reported that German automaker BMW AG has cut its full-year earnings forecast amid continued weakness in the Chinese market, higher subsidies for local dealers, and rising tariff-related costs.
BMW now expects its group pre-tax profit to decline slightly this year compared with 2024, having previously projected it would remain unchanged. The automaker also revised its automotive segment’s operating profit margin to between 5 percent and 6 percent. In addition, BMW lowered its free cash flow forecast for the year to about €2.5 billion, down from an earlier projection of up to €5 billion. The company attributed the revision primarily to increased payments to dealers, particularly in China.
German luxury carmakers such as Mercedes-Benz and BMW are facing mounting headwinds in China. Mercedes-Benz’s deliveries in the country plunged 27 percent in the third quarter, while its retail sales in July dropped more than 40 percent month-on-month — marking the first time in nearly five years that its monthly sales fell below 27,000 vehicles.
Source: Lianhe Zaobao, October 8, 2025
https://www.zaobao.com.sg/realtime/china/story20251008-7632427