BMW has cut its full-year profit forecast for its car business, lowering the expected automotive EBIT margin to a corridor of 1 to 3 per cent from previous guidance of 4 to 6 per cent. The German luxury carmaker also lowered its profit outlook for 2026.
The company attributed the slashed guidance to an accelerating decline and sales slump in the Chinese market, where it had previously stood apart from rival German carmakers in withstanding competition. Additionally, BMW cited the widening economic fallout and disruption from the conflict in the Middle East and the Iran war, which have weighed on energy prices and consumer confidence.
Following the shock profit warning that hit the automaker's shares, supervisory board Chairman Nicolas Peter stated that the company is on the right track with its next-generation models.