BMW AG has slashed its profitability forecast and lowered its profit outlook for 2026. The German luxury carmaker now expects a slight fall in automotive sales over the course of the year compared with a year earlier, having previously guided for flat growth.
The company attributed the slashed guidance to a slowdown and worsening demand in the Chinese market, as well as disruption from the Iran war. Furthermore, the conflict in the Middle East has weighed on energy prices and consumer confidence.
For years, BMW AG stood apart from rival German carmakers in withstanding the pain of increased competition in China. In response to the current challenges, the automaker has ramped up its cost-cutting program.